Safe Explained: Smart Accounts, SafeDAO & More

What is Safe?

Safe (formerly Gnosis Safe) is a decentralized platform that secures digital assets through Safe Smart Accounts, built on smart contract technology. These accounts provide enhanced security and flexibility over traditional externally-owned accounts (EOAs), offering features like gasless transactions, account recovery, and transaction batching.

At its core, Safe’s multi-signature wallet allows multiple approvals before executing transactions, offering an extra layer of security. Users can set custom approval thresholds, meaning several signers must approve a transaction, ensuring secure and controlled access to assets.

Safe operates on Ethereum, Arbitrum, Base, Optimism and other EVM networks, securing over $100 billion in assets and powering hundreds of apps. It has become the trusted standard in DeFi, widely adopted by DAOs, institutions, and individuals seeking a secure way to manage digital assets on-chain.

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How Does Safe Work?

Safe utilizes Safe Smart Accounts to replace EOAs with programmable, contract-based accounts offering features like multi-signature security, gasless transactions, and transaction batching.

Its modular architecture, powered by the Safe{Core} SDK and API, allows developers to easily integrate secure asset management into decentralized apps with flexibility. Here are some of the key components that makes Safe work:

• Multi-signature Execution: Transactions require threshold-based approvals from multiple owners, enhancing security by preventing single points of failure.
• Gasless Transactions: Safe uses meta-transactions, allowing relayers to cover gas fees via Safe{Core}, abstracting costs from users.
• Transaction Batching: Multiple operations can be bundled into a single transaction using Safe’s execTransaction method, optimizing cost and efficiency.
• Account Recovery: Built-in mechanisms like social recovery or guardian setups ensure account recovery in case of key loss.
• Modular Integration: Safe’s SDK and API allow for customization, integrating ERC-4337 Account Abstraction and interacting with Safe’s transaction and event services.

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What is Safe Wallet?

Safe Wallet is the main interface for managing Safe Smart Accounts, offering a secure and flexible way to handle digital assets. It uses multi-signature approvals, meaning multiple signers are required for transactions, boosting protection against unauthorized access.

It also connects with over 130 DeFi apps, letting users interact easily with various platforms like Uniswap, AAVE, and others. With stealth security features, customizable modules, and guards, Safe Wallet gives users full control to fine-tune their security setup based on their specific needs.

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SafeDAO Explained

SafeDAO is the decentralized organization that governs the Safe ecosystem, which focuses on secure smart accounts. $SAFE token holders, including users, contributors, and partners, can vote on important decisions like funding, resource allocation, and governance updates.

By giving token holders a direct say in how the platform evolves, SafeDAO ensures the community drives its development. Whether voting directly or delegating their voting power, participants help shape the future of Safe, keeping governance transparent and aligned with users.

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$SAFE Tokenomics

The $SAFE token is SafeDAO's governance token, driving decentralized decision-making and participation in the ecosystem. With a total supply of 1 billion tokens and 427 million initially circulating, $SAFE aligns stakeholder interests, enabling users to vote on key governance issues like funding and resource allocation.

Token distribution covers several areas: user participation (5%), guardians (5%), strategic raise (8%), core contributors (15%), and the Safe Foundation (7%). The bulk, 55%, goes to SafeDAO and GnosisDAO treasuries with a vesting schedule of up to 8 years.

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Bottom Line

In summary, Safe is a decentralized platform that secures digital assets with Smart Accounts, offering features like multi-signature security, gasless transactions, and account recovery. 

Governed by SafeDAO, $SAFE token holders help shape its future, ensuring community-driven growth. Safe has become a trusted solution in DeFi, securing over $100 billion in assets and supporting many projects.