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Kiyoshi Hirohito
Apr 27
The Safex Token vs. Safex Cash
Which is right for you?
Stuck on which of the two Safex cryptocurrencies is the best option for you? Read on to find out the benefits of each.
The Safex Token
The Safex Token currently resides on the Omni Protocol of the Bitcoin Blockchain, but in the coming months, it will be migrated to the newly developed Safex Blockchain. Here’s a high-level overview of the Safex Token:
Safex Cash
Safex Cash will be created through an initial airdrop as the Safex Token migrates to the Safex Blockchain. From that point forward, Safex Cash will be mineable. Here’s a high-level overview of Safex Cash:
The Case for Owning Safex Tokens
Incentives
In addition to the initial airdrop of Safex Cash as Safex Tokens migrate from the existing blockchain, the Safex Blockchain pays ongoing incentives! Someone with Safex Tokens can “lock in” their tokens in the Safex Wallet and begin receiving fees from the marketplace. The “lock” is not permanent; you can unlock your tokens at any time. Incentives are anticipated to be 5% of total transaction volume, payable solely to the Safex Token holders who have “locked-in” their tokens. There is a 1 Safex Token burn every time you perform the lock/unlock process.
Title Markets
The cost of establishing a Title Market and becoming its curator requires a Basic Account to pay and burn 200 Safex Tokens at the time of establishment. Curators of Title Markets can enable/disable anyone from participating within their market, set rules (like escrow policies, whether digital receipts are provided, etc.), and charge vendors a fee for selling within their market.
Account Profiles
A Safex Account is able to display its identity and be stored in the blockchain. A Basic Account consists of a Name, Avatar, Website URL, Unique ID, and an array of PGP Keys. The most important aspect is the fact that a Basic Account holder can receive and give reputation (feedback/ratings). The cost of a Basic Account is the burning of 2 Safex Tokens.
Price Appreciation
There are many things that will make the price of the Safex Token increase. Of primary note is the “incentive” dividends that are paid based on marketplace volume. For a more detailed view on how I believe dividends will impact the value of the Safex Token, read more here:
The Case for Owning Safex Cash
Buying on the Marketplace
Safex Cash will be the preferred currency of the Safex Marketplace. If you want to buy a product from one of the many collections of markets and sale listings within the Safex Marketplace, you’ll want to use Safex Cash.
Price Stability
Demand for Safex Cash depends on platform growth — growth of new active users (both buyers and sellers) and the number of transactions. Consequently, the emission curve for Safex Cash is designed to follow the rate of marketplace adoption. While the initial “price” or “value” of Safex Cash is unknown, the emission curve is expected to result in it being stable over time. Price increases will likely happen initially, but in the long term, this is meant to be a form of currency that sustains the same level of purchasing power over time.
Safex Cash Mining
Safex Cash is distributed using an egalitarian proof of work mining algorithm. The algorithm is based on the CryptoNight algorithm. It’s up to you whether you spend your mined Safex Cash in the marketplace or trade it for more Safex Tokens (or other cryptocurrencies).
Anonymity of the Safex Blockchain
Now that you have an overview of the differences between the Safex Token and Safex Cash, let’s talk about the anonymity factor. A critical element of a private cryptocurrency is that it must be “mutually interchangeable”. One unit of Safex Cash must be in the same perception as another Safex Cash unit. This is what makes the “Cash” term of “Safex Cash” function as a “currency”.
Therefore, the Safex Blockchain employs the use of Ring Confidential Transactions in order to preserve the fungibility of the currency so that each Safex Cash is viewed in the same way.
Utilizing RingCT allows you to maintain the privacy that one should expect with their finances when utilizing a fully transparent and decentralized blockchain.
Both Safex Cash and the Safex Token will have this same level of privacy and anonymity.
Encrypted Marketplaces
While the every day user of the Safex Marketplace will be able to see public listings, any user has the ability to fully encrypt their market, and in order to view or participate in that market, the other users must acquire the decryption key. That can apply to both a curated Titled Market, or a “Void Market”, where the market bares no title, and is free formed with arbitrary parameters.
_What’s right for you?
If you are looking to use the Marketplace as a way to buy goods and services, you’ll want to own Safex Cash.
If you are looking to make an “investment”, you’ll want to own Safex Tokens. Similarly, if you want to become a Title Market curator, or establish a reputation on the marketplace, you’ll need to own a (very) small amount of Safex Tokens.
A couple of final notes:
The terms “shares”, “ownership”, and “dividends” used are not legal definitions related to the nature of these coins, but are used in the context of the commonly accepted meanings of each respective word. The Safex development team has undertaken significant steps to demonstrate why the Safex Tokens do not meet the legal definitions of shares, and why Safex Cash will not meet the legal definition of dividends. For further reading, here’s the legal analysis from Safex, which discusses the token in the context of the Howey Test: https://medium.com/@DanielDabek/safex-bittrex-delisting-situation-d8ebfb82d2d1
Finally, while I do own a significant number of Safex Tokens, I have no relationship with the Safex development team or Balkaneum nor did I receive any compensation to write this article. Also, this article should not be considered financial or investment advice.
You can find out more information on safex.io or by reading the Safex Bluepaper at https://safex.io/SafexBluePaperJan3.pdf.