What is Safex Token?

Learn about Safex Token, the utility token of the Safex Marketplace. Together with Safex Cash, it enables the entire functionality of the Safex Blockchain protocol.

What is Safex Token?

Safex Token is the second cryptocurrency associated with the Safex project. It’s a utility token, and as the name says - it’s a token, not a coin. It has a limited supply, cannot be mined, and is not divisible. Safex Tokens had existed since September 2018, but its history is a bit longer.

History of Safex Tokens

Safex Tokens, backed up by Safex Blockchain, had existed since 2018. However, one other token existed before the Safex Token. The name of it was Safe Exchange Coin, and it was an OMNI token - backed up by the Bitcoin blockchain. When Safex Blockchain was launched, developers organized a so-called migration of this original placeholder token from the Bitcoin blockchain to the Safex Blockchain. This migration period lasted for almost 13 months. During that period, Safe Exchange Coin holders migrated their tokens to the Safex blockchain using the specially built migration function in a previous Safex wallet. In this process, the Safe Exchange Coins were transferred to a burn address, and each holder got an equal amount of Safex Tokens as they had Safe Exchange Coin before - and that’s the beginning of Safex Tokens.

What is most important about Safex Tokens:

  • Safex Tokens are all in circulation already
  • You need them to create an account on the Safex Marketplace
  • You need them if you want to passively earn on the Safex Marketplace
  • They are not divisible and cannot be mined

Circulating supply of Safex Tokens

As we explained earlier, all the Safex Tokens in existence were originally OMNI Safe Exchange Coins on the Bitcoin blockchain, and there are now 1,885,974,016 Safex Tokens in circulation. Why such an uneven number, you might ask? Simple: Not all the people migrated their Safe Exchange Coins, some of them just forgot about them, or lost their private keys.

Creating an account on Safex Marketplace

To create an account on Safex Marketplace, you need to have some minimum amount of Safex Tokens. You are not paying for this service, you are just temporarily locking your tokens. The creation of a Merchant Account requires 1,000 SFT to be available in the wallet. Those 1,000 SFT will be locked for 22,000 blocks (~30 days) before returning to the available balance, where they can be used to create another account, used as part of a Stake transaction or transferred to another wallet address with a Send transaction. Locking Safex Tokens in this process is essential because it reduces the possibility of spamming the network with masses of accounts - because the 1,000 available Safex Tokens are required for each creation transaction.

Passive income

You can passively earn from the marketplace sales even if you are not selling anything personally. That is possible if you stake (temporarily lock) your Safex Tokens. Staking is an advanced function of the Safex protocol, and anyone with 25,000+ Safex Tokens can do it. By staking Safex Tokens, you would be able to passively earn from the sales commission pool in the proportion of your staked Tokens versus the total Staked Tokens.

In very simplistic terms, it works like this: From every purchase on the marketplace a 5% fee is collected and placed in the sales commission pool. When the holder stakes their tokens, they will get some of that Safex Cash just because they staked the tokens. The number of Safex Cash they are getting is proportional to the number of tokens they staked. If we imagine that there are only two token holders with one having 80% of all locked tokens and the other having the remaining 20% and that a transaction has taken place where 5 Safex Cash went into the common treasury, it means that one holder would get 4 SFX and the other 1 SFX.

Staking Safex Token

It is important to highlight that this a collected and distributed share of revenue, which is automatically executed by the rules of the protocol. This is fundamentally different to a company that pays out a dividend from generated profits to its shareholders. For Safex, 100% of the sales commission get distributed to the staked Tokens.

Here is some additional information you will need before staking tokens:

In order to stake your tokens, you need a Safex Wallet. It goes like this: You need to download and install your Wallet. To stake Tokens, you need to have at least 25,000 SFT. The minimum staking duration is 8,000 blocks (10-11 days), and during that time, you can’t unstake. Revenue share of Safex Cash is calculated at the end of every 1,000-block interval. Only Tokens staked for the entire 1,000-block period qualify for the revenue share. The good thing is that you can make multiple stakings, unstake them at different times, and add new stakes at any time as long as each stake has at least 25,000 Tokens.

What about unstaking?

As we mentioned, you can only Unstake after the 8,000-block staking lock period expires, and you can only Unstake the same amount of Tokens that were staked in the transaction - you cannot partially Unstake a Staked amount. So, a good option could be staking tokens in two or more sets, not all in one. Revenue share of Safex Cash arrives in your wallet when you Unstake tokens, not before, and of course, the previously staked tokens return to your available balance. Unstaked tokens and the associated Safex Cash revenue share are subject to the 10-block pending status before they become part of the available balance and can be used for transactions again.

This was a short explanation about Safex Tokens. If you want to install Safex Wallet and take a peek, here is a detailed guide on how to do so.