- Title: Make The Safe Token Transferable
- Authors: b1k00
inspired by Daniel (danftz.eth, Co-founder@Decenra), 0x4Graham, netrunner.eth, Melodic_Platypus, pdiomede, nodeE, CaptianTee, qianwan_lv, lukas, papa_raw, BraveNewDeFi, Nully, kdowlin, Bruce, ross
- Created: 2022-10-21
The Safe Token is initially not transferrable.
Only the SafeDAO can enable transferability by the means of a successful governance proposal that unpauses the Safe token contract.
The Safe Token might be available on secondary markets if its transferability is enabled by SafeDAO.
This proposal aims to initiate a community vote(snapshot vote) on whether and when to enable token transferability.
Community members will vote on whether and when to enable token transferability based on their opinions after fully considering the details below.
Purpose and Background
This proposal was based on the community discussion initiated by Daniel. ([SEP #2] Community Initiative To Unpause Token Contract (Enabling Transferability))
It’s time to move this proposal to the next stage, because
- The relevant community discussions have been going on for almost a month, and most people’s opinions have been taken into account.
- Token claims have become slow and initial token holders have stabilized in line with the voting base.
- More than 500 people participated in the temperature check vote initiated by ross, and 99% of the votes were cast to unpause the Safe Token transfer function. (Snapshot)
Enabling token transferability is in line with the opinions of most community members.
- SEP #1(Snapshot) is already in the snapshot voting stage, according to the current voting situation, it will be most likely passed on 2022-10-25, which means that everyone must agree to SafeDAO participation agreement before voting on this SEP.
I will reconfirm the voting result of SEP #1 on October 25th and update this part of the content, this update will not cause the SEP to be delayed into the snapshot. (Unless SEP #1 does not pass, but I think it is almost impossible)
Effects and Impact Analysis
At present, based on the feedback from community members, the following views have been summarized.
About whether to enable token transferability or not:
Enable token transferability
- People will be able to freely manage and distribute their Safe Token, which is a fundamental function of a token. And enable token transferability will bring More Utility and Reduce Liability for Safe Token holders.
- Since the Safe Token are currently non-transferable, SafeDAO’s participation structure is fixed, without any new participants being able to come in, and enabling token transferability will improve this situation.
- Enables the SafeDAO treasury to use its native asset for ecosystem growth. There are already proposals under discussion about the use of SAFE tokens as an incentive for the SAFE ecosystem, and none of these proposals would be possible without enabling token transferability. ([Discussion] Safe DAO Resource Allocation Model (OBRA), Safe Grants Program (SGP))
- Imbues the Safe Token asset with value based on supply/demand dynamics.
Not enable token transferability
- In the current market situation, tokens should not be made transferable, which is not good for the token price.
- Transferable tokens may lead to some potential regulatory risks.
- The governance process is more resilient against malicious vote-buying at all participation rates. If a secondary market is created then malicious actors could accumulate tokens there.
About when to enable token transferability:
Enable immediately after the vote
- Without enabling transferability, almost all other proposals currently cannot proceed.
- Whether it enables transferability now or after the claim period, Those who want to sell their tokens for profit will always dump them without hesitation.
- Blindly delaying the unpause when there are no other proposals to engage/discuss will only kill people’s interest in participating in SafeDAO governance.
Enable after the claim period
- Need to wait for more people to claim their tokens before enabling transferability.
- Unlock too soon and users not interested in governance will dump.
- Should continue to wait until this proposal gets more feedback.
This SEP takes into account the opinions of almost all community members and will set three options for voting
Enable transferability immediately after the vote
Enable transferability immediately after the claim period
Make no changes
If “Make no changes” has more than 50% of the votes this will be accepted,
If these two options(“Enable transferability immediately after the vote” and“Enable transferability immediately after the claim period”
) combined get more than 50% of the votes, the option with more votes will be accepted.
There are different voting options for those with different opinions on enabling token transferability.
To make the token transferable no additional code is required, however, the owner of the token has to call the unpause method of the token contract. Once the token contract is unpaused (and therefore the token is transferable) it is not possible to pause the token contract again (e.g. once transferable forever transferable).
Source: safe-token/token.md at 6a1a4a99a7f3166b525cbd5469eaf0aea1c88e54 · safe-global/safe-token · GitHub
Although I think the current voting options have taken almost everyone’s opinion into account, there may still be other meaningful options, this SEP will be publicized for at least 6 days for community members to comment, if there are no major changes, this proposal will enter snapshot vote in 2022-10-27 at the earliest time.
The discussion of this proposal was initiated by Daniel, and most of the ideas came from this guy. At the same time, I saw many wonderful comments from community members, and finally, I sorted it out and summarized it, and got this proposal, this proposal is the work of many community members.(The authors includes all community members who commented more than 3 sentences in the Discussion and received at least three likes, recorded before the SEP was posted. ross initiated a temperature check vote on unpause Safe Token transfer or not, so ross is also included in the authors)
Copyright and related rights waived via CC0.