Safe, the decentralized smart account project, is restructuring the way its flagship interface, Safe Wallet, operates, it revealed on Friday, October 10th. Safe Wallet currently has over 4.5 million monthly active users.
In a post on X, Safe co-founder Lukas Schor revealed that Safe Labs, a wholly owned subsidiary of the Safe Foundation, directly manages the platform. He said the move is aimed at improving trust, strengthening governance and better aligning the wallet’s operations with the broader Safe ecosystem.
“Bringing an instance of Safe{Wallet} into the Foundation’s orbit allows us to explore new monetization avenues as our ecosystem grows,” Scholl added. “Future monetization paths may be more closely tied to SAFE tokens and reinvested into products and ecosystems.”
SAFE’s governance token is down 23% on the day and currently trades at $0.27 as the overall market declines.
Previously, all instances of Safe Wallet were essentially operated by independent teams such as Core Contributors GmbH, Protofire, and Den. While this approach was intended to foster diversity across the ecosystem, Scholl said expectations from users and partners grew over time.
The co-founder explained that specific challenges include “governance gaps” due to the foundation’s limited involvement in operational affairs, and “unbalanced incentives” with the risk of “divergent strategic priorities to optimize this revenue model.”
To migrate your account to the new interface, users must agree to Safe Labs’ Terms of Service.
“This transition establishes a direct link between Safe{Wallet}, the Foundation and, in turn, SafeDAO operations,” Scholl said. “We align incentives, governance, and funding to enable investment at the scale needed to meet today’s expectations.”
This transition is being led by Rahul Rumala, who was recently appointed CEO of Safe Labs. Rumalla joined the Safe ecosystem in July 2024 as Vice President of Product & Engineering. According to its official website, Safe Wallets currently has $100 billion in assets secured, with a total transaction volume of $228 billion.
Safe initially began as an internal project at Gnosis and then became an independent organization through a spin-off.
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