The SAFE token is down 23% amid a widespread crypto selloff.
Safe, the decentralized smart account project, is restructuring the way its flagship interface, Safe Wallet, operates, it revealed on Friday, Oct. 10. Safe Wallet currently has more than 4.5 million monthly active users.
In a post on X, Safe co-founder Lukas Schor revealed that Safe Labs, a fully owned subsidiary of the Safe Foundation, is taking direct control of the platform. He said the move aims to improve reliability, strengthen governance, and better align the wallet’s operations with the broader Safe ecosystem.
“By bringing an instance of Safe{Wallet} into the Foundation’s orbit, new monetization paths can be explored that align with ecosystem growth,” Schor added. “Future monetization paths can be tied more closely to the SAFE token and be reinvested back into the product and ecosystem.”
Amid the broad market selloff, SAFE’s governance token dropped 23% on the day and is currently trading at $0.27.
Previously, all instances of Safe Wallet were essentially run by independent teams, including Core Contributors GmbH, Protofire, and Den. While this approach aimed to promote diversity across the ecosystem, over time, expectations from users and partners increased, Schor said.
The co-founder explained that some specific challenges included “governance gaps” due to the foundation’s limited involvement over operational tasks as well as “misaligned incentives’ that risked “a divergence in strategic priorities to optimize for this revenue model.”
To migrate their accounts to the new interface, users must accept Safe Labs’ Terms & Conditions.
“This shift establishes a direct link between the operations of Safe{Wallet}, the Foundation, and by extension the SafeDAO,” Schor said. “It aligns incentives, governance, and funding, making it possible to invest at the scale required to meet today’s expectations.”
Leading the transition is Rahul Rumalla, the recently-appointed CEO of Safe Labs. Rumalla joined the Safe ecosystem in July 2024 as Vice President of Product & Engineering. Safe Wallets currently boasts $100 billion in assets secured, according to the official website, with $228 billion in total volume processed.
Safe initially began as an internal project at Gnosis before becoming an independent entity through a spin-off.
Source: https://thedefiant.io/news/infrastructure/safe-labs-takes-the-reins-of-popular-multi-signature-wallet
