After the unlocking of the token, the price of SafeDAO’s native token SAFE fell by 42% from $3.26 on the day of unlocking to $1.88 on April 30. Safe’s token contract was paused on April 23, allowing owners to transfer their tokens. These tokens had been locked for two years following the decentralized autonomous organization’s decision to implement the lock in 2022.
Significant Move from SafeDAO Team
This follows a vote on the token transferability proposal, which 99.1% of SafeDAO participants approved. A spokesperson for Safe said that the DAO delayed releasing the tokens to allow for a phased decentralization.
The DAO collaborated on a roadmap covering various areas such as governance processes and resource allocation, ensuring these areas were mature before unlocking the token. The spokesperson stated that the proposal to enable token transferability was assembled only after reaching the milestones set by the DAO, sharing the following:
“Unlocking the SAFE token adds momentum for a better user experience through smart accounts, marking a new chapter in making crypto ownership easy and accessible.”
Notable Details for SAFE
Despite the lack of token transferability and the crypto winter, the Safe team claimed a 22-fold increase in its user base. The spokesperson also stated that the team had amassed assets worth $100 billion and created 7.5 million accounts. Although the ecosystem experienced significant growth, a major price drop occurred after the DAO enabled token transferability.
According to CoinGecko, Safe was trading at $3.26 on April 23. At the time of writing, the token was trading at $1.88, representing a 42% drop since enabling transfers.
Safe spokesperson said that after enabling token transferability for the project, they explored creating the internet’s ownership layer where users would control their data, identities, and assets in the Web3 space. The spokesperson mentioned that they would implement native integration for Layer-2s to enhance scalability and cross-chain functionality, along with creating community events for the ecosystem.
