💠 $SBANK Token White Paper

Version: 1.0
Date: October 2025
Network: Ethereum (multi-chain expansion to Base, Arbitrum, Polygon)
Issued by: SafeBank Technologies Inc.
Governed by: SafeBank DAO

💡 Note: This document focuses exclusively on the $SBANK token economics and governance. For information about the SafeBank Protocol architecture, products, and technical design, see the Protocol White Paper.

1. Introduction

The $SBANK token is the utility and governance asset of the SafeBank Protocol — the world's first hybrid DeFi bank that merges on-chain yield, credit, and Tap-to-Pay payments with traditional banking rails.

$SBANK is designed to align incentives between users, merchants, liquidity providers, partners, and the SafeBank DAO, forming the backbone of a self-sustaining financial ecosystem.

2. Token Purpose

$SBANK serves as the economic engine of the SafeBank network.

Function	Description
Utility Token	Powers staking, yield boosts, and transaction rewards.
Governance Token	Grants voting rights in SafeBank DAO proposals.
Credit Collateral	Used as proof of stake and creditworthiness for on-chain lending.
Payment Asset	Used for Tap-to-Pay cashback, merchant incentives, and fee reductions.
Deflationary Mechanism	Burned through protocol activity to reduce total supply.

3. Token Overview

Attribute	Detail
Name	SafeBank Token
Symbol	$SBANK
Standard	ERC-20 (Upgradeable via SafeBankDAO)
Total Supply	1,000,000,000 (fixed)
Decimals	18
Contract Governance	DAO-controlled via SafeBankDAO.sol
Emission Model	Declining inflationary rewards with deflationary burns

4. Token Distribution

Category	% Allocation	Tokens	Vesting
Protocol Treasury	25%	250,000,000	Linear vesting over 5 years (DAO-controlled)
Founders & Core Team	20%	200,000,000	12-month cliff, then 36-month monthly vesting after TGE
Investors & Strategic Partners	15%	150,000,000	6-month cliff, then 24-month vesting
User & Merchant Rewards	25%	250,000,000	Distributed dynamically through Tap-to-Pay and staking
Liquidity Provision	10%	100,000,000	Unlocked at TGE for DEX & CEX liquidity
Advisors / Ecosystem Partners	5%	50,000,000	18-month vesting post-TGE

Total Supply: 1,000,000,000 $SBANK

Visual Distribution

%%{init: {'theme':'base', 'themeVariables': { 'pieStrokeWidth': '2px'}}}%%
pie title Token Supply Allocation (1B $SBANK)
    "Protocol Treasury (25%)" : 250000000
    "User & Merchant Rewards (25%)" : 250000000
    "Founders & Core Team (20%)" : 200000000
    "Investors & Partners (15%)" : 150000000
    "Liquidity Provision (10%)" : 100000000
    "Advisors & Ecosystem (5%)" : 50000000

5. Vesting Policy

Founders & Core Team: 12-month cliff, monthly vesting for 36 months after TGE.
Investors: 6-month cliff, linear vesting for 24 months.
Advisors: 18-month linear vesting.
All vesting managed transparently through on-chain vesting contracts (VestingVault.sol).

6. Utility Breakdown

6.1 Staking

Users and merchants can stake $SBANK to:

Boost Bill Buffer yield rates.
Reduce Tap-to-Pay and off-ramp fees.
Unlock higher DeFi credit limits.

6.2 Governance

$SBANK holders govern:

Yield allocation and DeFi integrations.
Treasury spending, grants, and ecosystem growth.
Fee and burn parameter adjustments.
Partner approvals (Worldpay, CredZK, etc.).

Voting is performed via veSBANK (vote-escrowed staking):

1-month lock = 1 vote power.
12-month lock = 12× vote power.

6.3 Credit Collateral

Staked $SBANK acts as collateral to unlock "SafeCredit" — on-chain credit lines issued through CreditLimit.sol.
Combined with CredZK proof, users earn higher credit multipliers.

6.4 Rewards

Earned from Tap-to-Pay usage and staking.
Paid as a portion of DAO revenue and Bill Buffer yields.
Merchants and users receive cashback in $SBANK.

6.5 Burns

0.5% of every Tap-to-Pay transaction fee is automatically burned.
Unclaimed staking rewards after 180 days are burned.
DAO Buyback Program: Surplus treasury yield used to repurchase and burn $SBANK.

7. Token Flow

Fiat → SafeBank → USDC Conversion
│
▼
Bill Buffer Vault
│
├─> Yield (USDC)
├─> $SBANK Rewards
│
▼
Stake $SBANK → Boost APY + Credit Limit
│
▼
Use Tap-to-Pay → Earn Cashback + Burn Fees
│
▼
DAO Treasury → Governance + Buyback/Burn

Visual Token Lifecycle

graph LR
    A[User Deposits Fiat] --> B[Convert to USDC]
    B --> C[Bill Buffer Vault]
    
    C --> D[Generate Yield]
    D --> E[80% USDC<br/>20% $SBANK]
    
    E --> F{User Action}
    
    F -->|Stake| G[Stake $SBANK]
    G --> H[Boost APY<br/>Higher Credit Limit]
    
    F -->|Spend| I[Tap-to-Pay Transaction]
    I --> J[Fee Split]
    J --> K[0.5% Burned 🔥]
    J --> L[Cashback Earned]
    
    F -->|Govern| M[Vote in DAO]
    M --> N[Control Protocol<br/>Parameters]
    
    H --> O[Unlock veSBANK]
    O --> M
    
    K --> P[Deflationary Pressure]
    L --> F
    
    style A fill:#4c6ef5,stroke:#364fc7,stroke-width:2px,color:#fff
    style K fill:#fa5252,stroke:#c92a2a,stroke-width:2px,color:#fff
    style H fill:#51cf66,stroke:#2b8a3e,stroke-width:2px,color:#fff
    style P fill:#ff6b6b,stroke:#c92a2a,stroke-width:2px,color:#fff

8. Revenue Integration

8.1 Tap-to-Pay Fee Split

Recipient	Share	Function
Worldpay Partner	0.35%	Settlement, compliance, network processing.
SafeBank Treasury	0.30%	DAO and infrastructure revenue.
Merchant Rewards Pool	0.20%	Loyalty rewards in $SBANK.
User Cashback Pool	0.10%	Cashback in $SBANK.
Burn Contract	0.05%	Permanent supply reduction.

Total: 1.00% per transaction.

Visual Fee Flow

graph TD
    A[Tap-to-Pay Transaction<br/>1.00% Fee] --> B[Worldpay Partner<br/>0.35%]
    A --> C[SafeBank Treasury<br/>0.30%]
    A --> D[Merchant Rewards<br/>0.20%]
    A --> E[User Cashback<br/>0.10%]
    A --> F[Burn Contract<br/>0.05%]
    
    B --> B1[Settlement & Processing]
    C --> C1[DAO Revenue & Infrastructure]
    D --> D1[Loyalty Programs in $SBANK]
    E --> E1[User Rewards in $SBANK]
    F --> F1[Permanent Supply Reduction]
    
    style A fill:#4c6ef5,stroke:#364fc7,stroke-width:3px,color:#fff
    style F fill:#fa5252,stroke:#c92a2a,stroke-width:2px,color:#fff
    style C fill:#51cf66,stroke:#2b8a3e,stroke-width:2px,color:#fff

8.2 DAO Treasury Sources

Tap-to-Pay fees (30%).
Yield spread (40% of net APY).
Credit interest (50% share).
Off-ramp fees (20% share).

Treasury income funds buybacks, staking rewards, and ecosystem grants.

9. Governance Model

Component	Description
DAO Contract: `SafeBankDAO.sol`	Manages proposals, votes, and treasury.
Token for Voting: veSBANK	Vote-escrowed staking model.
Proposal Threshold: 0.1% of total supply.
Quorum Requirement: 4% of circulating supply.
Execution Delay: 48-hour time-lock after approval.
DAO-Controlled Variables:	Fee splits, emission rates, treasury spend, CredZK policy updates, partner share ratios.

Governance Flow

graph TB
    Start([Token Holder]) --> Lock[Lock $SBANK<br/>for veSBANK]
    Lock --> Mult{Lock Duration?}
    Mult -->|1 month| VP1[1x Vote Power]
    Mult -->|6 months| VP6[6x Vote Power]
    Mult -->|12 months| VP12[12x Vote Power]
    
    VP1 --> Action
    VP6 --> Action
    VP12 --> Action
    
    Action{Action Type}
    Action -->|Create| Propose[Submit Proposal<br/>Requires: 0.1% supply]
    Action -->|Vote| Vote[Cast Vote<br/>YES or NO]
    
    Propose --> Discussion[Discussion Phase<br/>7 days]
    Discussion --> Voting[Voting Phase<br/>3 days]
    Vote --> Voting
    
    Voting --> Quorum{Quorum Met?<br/>4% of supply}
    Quorum -->|No| Rejected[❌ Proposal Rejected]
    Quorum -->|Yes| Majority{Majority?<br/>>50% YES}
    
    Majority -->|No| Rejected
    Majority -->|Yes| Timelock[⏱️ 48-Hour Timelock]
    
    Timelock --> Execute[✅ Auto-Execute<br/>On-Chain Update]
    Execute --> Update[Protocol Updated<br/>New Parameters Active]
    
    style Start fill:#4c6ef5,stroke:#364fc7,stroke-width:2px,color:#fff
    style Execute fill:#51cf66,stroke:#2b8a3e,stroke-width:3px,color:#fff
    style Rejected fill:#fa5252,stroke:#c92a2a,stroke-width:2px,color:#fff
    style Update fill:#748ffc,stroke:#4c6ef5,stroke-width:2px,color:#fff

10. Economic Policy

10.1 Inflation

Initial emission rate: 5% annualized (reducing by 10% each year).
Distributed via staking rewards and user incentives.

10.2 Deflation

Target: Net-deflationary after Year 3.
Driven by Tap-to-Pay burns and DAO buybacks.
Goal: Circulating supply ≤ 800M by Year 5.

10.3 Sustainability

DAO ensures emission ≈ burn rate over time.
Treasury yield reserves maintain liquidity for rewards.

11. Compliance Framework

Issuer: SafeBank Technologies Inc. (Delaware C-Corp).
Foundation: SafeBank Foundation (Singapore or Cayman) for token governance.
Custodial Partners: Fortress, Cross River, Worldpay.
KYC/AML: Managed via IDSentric + CredZK zero-knowledge verification.
Audits: Quantstamp / CertiK before TGE and major upgrades.

12. Token Governance Example

Scenario: DAO Vote to Adjust Worldpay Fee Share

Proposal submitted to raise Worldpay share from 0.35% → 0.40%.
Voting period: 7 days.
veSBANK holders vote YES or NO.
If approved and quorum reached → auto-executed after 48h delay.
TapToPay.sol updates worldpayFeeShare parameter.
Future transactions use new on-chain split.

This model allows transparent, real-time policy control of the SafeBank ecosystem.

13. Token Lifecycle Example

Deposit: User deposits $1,000 (fiat → USDC).
Yield: Bill Buffer invests → generates 6% APY.
Rewards: User earns 80% in USDC + 20% in $SBANK.
Stake: User stakes $SBANK → boosts APY to 7%.
Credit: CredZK verification → LTV increases 15%.
Spend: Tap-to-Pay → 0.5% burn, 0.3% DAO, 0.2% merchant reward.
Govern: User votes in DAO proposal using veSBANK.

14. Tokenomics Summary

Mechanic	Supply Effect	Description
Staking Rewards	+Emission	Controlled inflation for participation.
Tap-to-Pay Burn	−Burn	Constant deflation from transaction volume.
DAO Buybacks	−Burn	Treasury repurchases $SBANK with yield profits.
Unclaimed Rewards	−Burn	Automatic burn of expired claims.
Emission Decay	Neutral	10% annual reduction ensures sustainability.

15. Roadmap

Phase	Timeline	Milestones
Phase 1: Foundation	Q4 2025	Token audit, DAO setup, partner agreements.
Phase 2: TGE Launch	Q2 2026	$SBANK mainnet deployment, vesting contracts live.
Phase 3: Governance Activation	Q3 2026	DAO voting, proposal framework, CredZK proofs.
Phase 4: Expansion	2027–2028	Multi-chain bridges, institutional integrations.

16. Disclaimer

$SBANK is a utility and governance token, not an investment contract.
Ownership of $SBANK does not grant rights to profits, dividends, or ownership in SafeBank Technologies Inc.
Use of the token is subject to applicable laws and regulations.

17. Conclusion

$SBANK represents the heart of the SafeBank ecosystem — turning every transaction, yield event, and credit interaction into an on-chain, community-governed economy.

Through tokenized incentives, privacy-preserving credit proofs (CredZK), and real-world payment rails (Worldpay), SafeBank is building the world's first truly decentralized financial operating system.

Earn. Spend. Borrow. Govern.
All powered by $SBANK.

Contact:
🌐 safebank.ai
📧 hello@safebank.ai
📄 docs.safebank.ai

1. Introduction​

2. Token Purpose​

3. Token Overview​

4. Token Distribution​

Visual Distribution​

5. Vesting Policy​

6. Utility Breakdown​

6.1 Staking​

6.2 Governance​

6.3 Credit Collateral​

6.4 Rewards​

6.5 Burns​

7. Token Flow​

Visual Token Lifecycle​

8. Revenue Integration​

8.1 Tap-to-Pay Fee Split​

Visual Fee Flow​

8.2 DAO Treasury Sources​

9. Governance Model​

Governance Flow​

10. Economic Policy​

10.1 Inflation​

10.2 Deflation​

10.3 Sustainability​

11. Compliance Framework​

12. Token Governance Example​

13. Token Lifecycle Example​

14. Tokenomics Summary​

15. Roadmap​

16. Disclaimer​

17. Conclusion​