$SAFU Token

$SAFU token is a governance and utility token linked to a capital pool. When contributing ETH or DAI to the capital pool, $SAFU is minted and sent to the contributor's wallet.

• Onchain Governance: $SAFU holders vote on protocol upgrades and investment allocations.

• DAO Governance: Members use $SAFU to decide on the use of DAO treasury funds through proposals and voting.

• Staking: $SAFU is used for staking, allowing members to create capacity for cover purchases and earn rewards from cover fees.

• Claims Assessment: Stakers participate in assessing claims with a lockup period to prevent attacks; fraudulent voters risk having their staked $SAFU burned.

Token Flows

Total token supply of $SAFU: 2M

1M   Safura DAO 0.4M  Core Contributors (vested) 0.4M  Investors/Liquidity provider (vested) 0.2M  AuditOne Treasury (vested)

As Safura is part of AuditOne's ecosystem, $AUDIT holders can convert their tokens to $SAFU (rate to be determined, similarly to the booster logic of MagicSea). We will announce a guide on "how to" once the technical infrastructure is developed for it.

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Contributor compensation for the first year:

100,000 $SAFU (5%) = $500,000

5% of the total token supply (valued at $500,000, based on the fictional $10M starting valuation) is allocated for Core Contributors (CC) in the first year. Special task bounties might come up that will be covered by the Safura DAO allocation.

Breakdown of Allocation

1. Lead (16,000 $SAFU = $80,000):

   • The lead contributor receives 16% of the allocated 100,000 tokens, emphasizing their pivotal role in guiding the DAO’s development.

   • This substantial reward reflects the responsibilities and strategic influence the lead is expected to have.

2. Other Committee Members (each 12,000 $SAFU = $60,000):

   • Committee members each receive 12% of the allocated tokens for their critical support in decision-making and execution.

3. Non-Committee Members (each 4,000 $SAFU = $20,000):

   • Non-committee contributors each receive 4% of the allocated tokens, recognizing their valuable, albeit limited, contributions to the DAO.

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Premise of Allocation

1. Gradual Unlocking Over the Year:

   • Tokens are vested incrementally (e.g., monthly or quarterly), ensuring contributors remain aligned with the DAO’s goals throughout the year.

   • This avoids front-loading rewards and incentivizes sustained efforts.

2. Contribution-Based Distribution:

   • Allocations are tied to predefined roles and contributions. Contributors are rewarded based on their impact and responsibilities within the DAO.

3. Authority to Cancel Token Allocations:

   • The Lead has the authority to terminate future token unlocks for contributors who fail to meet their commitments.

   • This safeguard ensures accountability and protects the protocol’s resources.

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Token vesting & unlock through Hedgey Finance

• Hedgey Finance will be used to automate the token unlock process.

• Key Features:

  • Transparent, trustless execution of vesting schedules.

  • Contributors can track their vesting schedules and claim tokens automatically.

  • Minimizes manual oversight, reducing the risk of errors or disputes.

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Subsequent Years (Year 2, Year 3, etc.)

1. Evaluation-Based Adjustments:

   • Token allocations may change based on annual evaluations of:

     • Contributors’ performance and impact.

     • The DAO’s evolving requirements and goals.

     • External factors such as market conditions.

2. Dynamic Allocation:

   • Future allocations ensure the DAO remains flexible and can adapt rewards to incentivize contributors as the protocol matures.