1. Which goals does the strategy look to drive progress in?
Tokenize value (Goal 3): SAFE should represent the value of the Safe Ecosystem. Mechanisms should be created to link the growth of the Safe Ecosystem to the growth in utility of SAFE.
2. Which metrics and KPIs could initiatives under this strategy be measured against?
Disclaimer: KPIs should always be considered in relation to each other and not in isolation. For instance, the number of token utility contributions should be evaluated in conjunction with their quality. We would always prefer two high-quality contributions over five low-quality ones.
- Quality level of token utility contributions (via individual assessment)
- Specific Token Utility Participation Rate
- Increase in activity regarding utility
3. Outline the execution strategy or thesis
This is just an overview to give guidance on how to develop further token utility use cases:
- Research phase: Conduct comprehensive market research to understand current token utilities in the market.
- Development phase: Create use cases for Safe Token, focusing on user and developer value proposition and ecosystem growth.
- Implementation and iteration phase: Gradually roll out new utilities, monitoring user adoption and feedback.
4. What are some example initiatives that would fall under this strategy
Disclaimer: The initiatives mentioned below are just examples for discussion and should not be taken as confirmation of their actual implementation.
- Locking mechanisms: Implement locking mechanisms to reward long-term holders.
- Governance participation: Utilize Safe tokens for voting on resource allocation and product governance.
5. Detail around existing data or evidence to support this thesis
- Arbitrum (ARB): Functions as a governance token, allowing holders to vote on network upgrades. While it’s not possible to directly attribute the growth to token utility, following the token launch, the active user base increased by 44% from 1.8m to 2.6m in three months. The number of token holders increased by 112% from 285k to 604k, showing a steady ecosystem growth.
- Optimism (OP): Primarily used for governance, transaction fees, and to incentivise network and user engagement. Token launch allowed the protocol to increase the number of active addresses by 166% from 138k to 368k per month.
- Polkadot (DOT): Utility involves governance, staking for network security, and locking DOT for parachain slot auctions to support ecosystem development and growth. The total volume of staked reached 663m in 23Q3, showcasing a strong token utility.