What is Gnosis Safe (SAFE)? The importance of Multi-Sig

• What is Safe (formerly Gnosis Safe)?
• How does Safe work?
• What are the unique features of Safe?
• How to use Safe
• How much does it cost to create a Safe?
• Safe Airdrop
• SAFE Tokenomics
• SAFE Allocation Schedule
• Conclude

What is Safe (formerly Gnosis Safe)?

Safe is a multi-sign wallet that runs on multiple networks, including Ethereum Mainnet, Ethereum Testnet, Arbitrum , Aurora , BNB Chain , Gnosis Chain, Polygon… Basically, it requires a minimum number of users to approve transactions in advance. When conducting.

Most crypto users are only familiar with single-key wallets, often referred to as externally owned accounts (EOAs). Such accounts are MetaMask , Exodus, Trust Wallet… EOA is protected with a 12 or 24 word “seed phrase”, also known as a private key. If your private key is lost or stolen, you may lose all access to your funds.

As a result, single-key wallets are not ideal for crypto projects with multiple owners – if the employee is trusted with the private key by fraud or carelessness, funds can be lost forever. Even if a project has a single owner, you should still manage your funds. The best solution is to use a multi-sig wallet, such as Safe.

Example: If your project has 15 core members, Safe allows you to create a wallet that requires 2/3 (10 members) approval before a transaction is made. This ensures no member harms project funds by acting in their interests. Besides, Safe guarantees the right to self-manage your money. It eliminates the risk that custodian service companies give you the hassle of managing your project, as the deployed smart contract is trusted with minimal trust and under control. your control.

One of the major weaknesses of the cryptocurrency industry is secure asset access and management – ​​not only for decentralized autonomous organizations (DAOs) but also for individuals. Safe has emerged as a secure and customizable solution for digital asset management. Several DAOs, digital businesses and individuals, including Vitalik Buterin, one of the co-founders of Ethereum, are using it.

How does Safe work?

In general, Ethereum has two main types of accounts: EOA and contract accounts. EOA is a standard Web3 wallet that, like MetaMask, features a pairing of the public key with the private key. These wallets allow users to access and manage their digital assets, which live on the blockchain network. For example, you can transfer BTC to another address or deploy a smart contract to mint NFT through your MetaMask wallet.

On the other hand, a contract or smart contract account lacks a private key. Instead, they have lines of code that implement predefined instructions before they are met. A standard multi-sig wallet consists of three owners (each with their own key), which requires at least two approvals to execute a transaction.

These wallets are versatile and businesses and individuals can use them to:

• Safely manage funds
• Make sensitive transactions
• Achieve redundancy

Safe is an example of a smart contract using multi-sig. It acts as a smart contract deployed with a public address. Transaction signing is done through a custom logic tailored for a specific use. This requires some keys to make the transaction, and you can approve the transaction via hardware wallet, EOA or Safe mobile app. Besides, Safe connects to other applications through direct integration, making it easy to use.

What are the unique features of Safe?

Key features of Safe include:

• Multi-Signature: You can completely modify the way your funds are managed, with the function of specifying a predefined number of signatures to approve transactions. This feature prevents unauthorized or minority control of the property.
• Multiple Asset Support: Currently, Safe supports multiple asset classes, including ETH, ERC-20, and ERC-721. Safe also provides USD conversion rate of user assets.
• Integration with multiple wallets: You can sign transactions using hardware, software, or paper wallets.
• Safe Apps: Safe brings multi-signature security to DeFi, allowing users to put their content to work directly from its interface.

The table below shows how Safe's features compare to other crypto storage solutions:

How to use Safe

Here are five steps on how to set up a Safe wallet:

• Step 1: Create a Safe Wallet

A Safe wallet takes about 60 seconds to create. Access the web application here .

• Step 2: Connect Signer Wallet

To create a Safe you have to link a Signer Wallet, like MetaMask, Coinbase, Trust Wallet, Ledger, Trezor… Based on blockchain, make sure you hold some native tokens like ETH if you use Ethereum network because of the implementation Safe will cost some transaction fees.

After connecting the wallet, you can start creating your Safe by clicking “ Create New Safe ” and giving it a name.

• Step 3: Select Signers

Signers are wallets that are allowed to send and validate transactions (you can change them later if you want). Remember that the wallet you connected in step 2 is considered the first signer, but you can change it too.

Include as many signers as you want by pasting the address or entering the ENS name.

• Step 4: Determine the confirmation threshold

Specify the number of signer confirmations that a transaction requires to be executed. If you are an individual, make sure you have full signer access to hit the limit. Otherwise, you will not be able to access your funds.

• Step 5: Review and implement

Review your parameters before clicking the “ Create ” button.

How much does it cost to create a Safe?

The total transaction fee you need to create a Safe depends on several parameters such as gas price, number of subscribers, ProxyFactory usage and additional logic set (FallbackHandler).

• A Safe with two signers claims about 0.00263 ETH ($3.55).
• A Safe with three subscribers requires about 0.00309 ETH ($4.17).
• A Safe with four signers claims about 0.00331 ETH ($4.46).

Safe Airdrop

Safe has begun an airdrop of its native token, SAFE, to nearly 43,000 eligible users. The airdrop was part of the founding of SafeDAO, the organization formed after Gnosis Safe rebranded as Safe.

SAFE token holders enjoy voting rights on SafeDAO. In addition, they can delegate their voting rights to custodians with common governance interests. 

SafeDAO has conducted a community challenge to weed out Sybil airdrop hunters – users who join projects exclusively to claim the upcoming airdrop. They create several wallets that execute a single transaction on a potential project, thus qualifying for future airdrops. Sybil airdrop hunters typically sell off their tokens immediately after confirming them, putting more selling pressure on the tokens. SafeDAO claims it has removed nearly 12,000 wallets associated with Sybil airdrop hunters, saving nearly 2.9 million SAFE tokens.

Thank you to everyone who helped ensure a fair $SAFE distribution!

Numbers:
• Over 500 submissions 🤯
• 12,168 Safe addresses removed, leaving 43,575 eligible.
• 2.9M $SAFE saved, redistributing 75% to the community and 25% as a reward 💸

Full post👇 https://t.co/hU60d8qmir https://t.co/pBwb34Jn8o

— Safe | Gnosis Safe (@safe) September 27, 2022

SAFE Tokenomics 

At launch, SAFE will act as Safe's native currency.

• Allocate 5% to users

Active Safe users should be key stakeholders of SafeDAO governance relative to their previous activity. In this regard, 25 million tokens (2.5% of the total supply) are now available to claim. The remaining 25 million will be spread over four years.

• Allocate 5% to the ecosystem 

In addition to users, Safe considers external ecosystem contributors as core stakeholders. This category includes individuals who actively contribute to the Safe open source elements and groups that create solutions on Safe. Currently, 12.5 million tokens are available for airdrops, while the remaining 12.5 million will be spread over four years.

• Allocate 5% to Joint Treasury

A 5% joint budget allocation is available and governed by 2 out of 2 multi-sigs between GnosisDAO and SafeDAO.

• Allocate 7% to Safe Foundation

The Safe Foundation ensures the growth of the Safe Ecosystem – it dedicates its resources to the rewards and development of the ecosystem, which requires a regulatory body to act as a partner.

• Allocate 8% to increase strategy (Advocate)

Safe conducted a strategic funding round in July 2022 to bring together core strategic partners and industry experts. 80 million tokens were given to Safe backers for four years with an initial lockup period of 12 months.

• Allocate 15% to core collaborators

Safe aims to incentivize key contributors and align them with its long-term vision. Currently, 100 million tokens (10% of total supply) are assigned to over 40 major contributors, while the remaining 50 million tokens (5% of total supply) are kept for future core contributors. future.

• Allocate 15% to GnosisDAO treasury

Gnosis is the founder and sponsor of Safe and it will remain an indispensable element and partner. That is why GnosisDAO has been allocated a significant number of SAFE tokens. The tokens are spread over four years, but 10 million are available now.

• Allocate 40% to SafeDAO

The SafeDAO Treasury Fund is meant to facilitate further distribution of SAFE. The allocation is spread over eight years and currently stands at 50 million.

SAFE e . allocation schedule

SAFE is expected to be fully available by 2030, with a maximum supply of 1 billion tokens.

Conclude

Secure access to cryptocurrencies is necessary for the development and long-term use of blockchain technology and distributed ledgers. Gnosis (the team behind Safe) has been building crypto-based asset management solutions since 2017, gaining a reputation for engineering and security expertise. With this background in place, it's likely that the team will solidify Safe as a Web3 essential.