What Is a 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 protocol.

What Is a 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 Token has existed since September 2018, but its history is a bit longer.

History of Safex Token

Safex Token, backed up by Safex Blockchain, has 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 Token as they had Safe Exchange Coin before - and that’s the beginning of Safex Token.

What is the most important about Safex Token:

  • Safex Token is all in circulation already
  • You need it to create an account on the Safex Marketplace
  • You need it if you want to passively earn on the Safex Marketplace
  • It is not divisible and cannot be mined

Circulating supply of Safex Token

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 that can be spent. 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 account.

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 common treasury in the proportion of your holdings of tokens.

In very simplistic terms, it works like this: From every purchase on the marketplace a 5% fee is collected and placed in the shared treasury. 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, 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.

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

In order to stake your tokens, you would 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 unlock after 8,000 blocks only, and you will unstake all the tokens from that staking fraction. So, a good option could be staking tokens in two or more sets, not in one. Revenue share of Safex Cash arrives in your wallet when you unstake tokens, not before, and of course, you will get back all the amount of previously staked tokens. 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 Token. If you want to install Safex Wallet and take a peek, here is a detailed guide on how to do so.