Tokenomics
SafeBank Token ($SBANK) - The utility token powering the autonomous banking ecosystem.
Token Overview
Name: SafeBank Token
Symbol: $SBANK
Type: ERC-20
Blockchain: Ethereum (with multi-chain deployment)
Total Supply: 1,000,000,000 SBANK
Initial Circulating Supply: 150,000,000 SBANK
Token Distribution
| Category | Allocation | Amount | Vesting |
|---|---|---|---|
| Public Sale | 30% | 300M SBANK | No lock-up |
| Team | 20% | 200M SBANK | 4-year vesting, 1-year cliff |
| Ecosystem & Reserves | 20% | 200M SBANK | Released over 5 years |
| Treasury & Liquidity | 15% | 150M SBANK | Immediate |
| Rewards & Yield Boosts | 10% | 100M SBANK | Progressive release |
| Advisors | 5% | 50M SBANK | 2-year vesting |
Vesting Schedules
Founders & Team (20%):
- 1-year cliff after token generation event (TGE)
- Monthly linear vesting over subsequent 3 years
- Ensures long-term alignment with protocol success
Ecosystem Fund (20%):
- 20% unlocked at TGE for initial grants
- 80% released linearly over 5 years
- Used for: developer grants, partnerships, ecosystem growth, community initiatives
Treasury & Liquidity (15%):
- Immediately available for:
- DEX liquidity provision
- Market making
- Strategic reserves
- Protocol-owned liquidity
Rewards & Yield Boosts (10%):
- Progressive distribution based on network activity
- Staking rewards
- Cashback programs
- Merchant incentives
Strategic Partners (10%):
- 6-month cliff
- Quarterly release over 18 months
- Performance-based unlock conditions
Advisors (5%):
- 6-month cliff
- Monthly release over 18 months
- Subject to continued contribution
Token Utility
1. Governance Rights
$SBANK holders govern the protocol through the SafeBank DAO:
Voting Power:
- 1 SBANK = 1 vote
- Minimum 10,000 SBANK to create proposals
- Quadratic voting for critical protocol changes
Governable Parameters:
- Transaction fee structures
- Credit policy parameters (LTV ratios, collateral requirements)
- Confirmation requirements
- Supported cryptocurrencies
- DeFi protocol whitelists
- ATM fee rates (per region)
- Protocol upgrades
- Treasury allocation
Proposal Process:
- Discussion Phase (7 days) - Community deliberation
- Voting Phase (3 days) - On-chain voting
- Timelock (48 hours) - Security buffer
- Execution - Automatic implementation if passed
2. Transaction Fee Discounts
Hold SBANK to reduce platform fees:
| SBANK Held | Discount Level |
|---|---|
| 100 - 999 | 5% discount |
| 1,000 - 9,999 | 10% discount |
| 10,000 - 99,999 | 15% discount |
| 100,000+ | 20% discount |
Applies to:
- Tap-to-Pay transactions
- ATM withdrawals
- Lending fees
- Off-ramp fees (ACH/wire/check)
3. Yield-Boost Staking
Stake SBANK to earn enhanced yields:
Base APY: 5-12% (dynamic, based on protocol revenue)
Lock-up Multipliers:
| Duration | APY Multiplier | Effective APY Range |
|---|---|---|
| No lock | 1.0x | 5-12% |
| 3 months | 1.2x | 6-14.4% |
| 6 months | 1.5x | 7.5-18% |
| 12 months | 2.0x | 10-24% |
Rewards Sources:
- 30% of all platform fees
- Token emissions (decreasing schedule)
- Liquidation penalties
- Governance participation bonuses
4. Credit Collateral
Use SBANK as collateral for ZKP-based credit lines:
Benefits:
- Lower interest rates (2-5% reduction)
- Higher credit limits (up to 50% increase)
- Flexible repayment terms
- No liquidation during temporary dips (grace periods)
Example:
- Hold 50,000 SBANK
- Unlock up to $25,000 USD credit line
- Interest rate: 8% APY (vs 12% without SBANK)
5. Merchant Benefits
Merchants holding SBANK receive premium benefits:
Fee Reductions:
| SBANK Held | Processing Fee | Savings |
|---|---|---|
| 0 | 0.5% | Base rate |
| 10,000 | 0.4% | 20% savings |
| 100,000 | 0.3% | 40% savings |
| 1,000,000+ | 0.2% | 60% savings |
Additional Perks:
- Priority support (24/7)
- Advanced analytics dashboard
- Custom integration assistance
- Marketing co-op funds
- Early access to new features
6. Cashback & Rewards
Consumers earn SBANK on qualifying purchases:
Base Cashback: 0.5% on all transactions Boosted Cashback: Up to 2% with SBANK holdings
| SBANK Held | Cashback Rate |
|---|---|
| 0 | 0.5% |
| 100+ | 0.75% |
| 1,000+ | 1.0% |
| 10,000+ | 1.5% |
| 100,000+ | 2.0% |
Special Categories:
- DeFi merchants: 3x cashback
- Sustainable/green merchants: 2x cashback
- Partner merchants: Variable boosts
Revenue Model
Platform Fee Structures
| Revenue Stream | Fee Rate | Description |
|---|---|---|
| Tap-to-Pay | 0.5-1% | Split with Worldpay |
| ATM Fees | $2-5 | Governed by DAO per region |
| Yield Spread | 1-3% | Margin on DeFi strategies |
| Lending Fees | 8-15% APR | Interest on ZKP credit lines |
| Protocol Fee | 0.3% | Added to lending |
| Off-Ramp Fees | 1% | ACH/wires/checks |
| Instant Withdrawal | 0.2% | Fast settlement premium |
Fee Distribution
Collected fees distributed as follows:
- 30% to Staking rewards
- 30% to Treasury
- 20% to Liquidity incentives
- 10% to Burns
- 10% to Development
Deflationary Mechanisms
Automatic Burns
Burn Schedule:
- Weekly: 10% of all transaction fees
- Quarterly: Large burn events from treasury
- Maximum burn cap: 20% of total supply (200M SBANK)
Burn Transparency:
- All burns executed on-chain
- Public dashboard tracking
- Quarterly burn reports
- Verified by block explorers
Buyback Program
Treasury Buybacks:
- Triggered during high-revenue periods
- Minimum $1M revenue threshold
- 20% of excess revenue allocated
- SBANK purchased from open market
- Burned or added to liquidity
Economic Sustainability
Revenue Projections
| Year | Projected Revenue | Growth Rate |
|---|---|---|
| Year 1 | $5M | Base |
| Year 2 | $25M | 400% |
| Year 3 | $100M | 300% |
| Year 4 | $300M | 200% |
| Year 5 | $500M | 67% |
Token Value Drivers
1. Utility Demand
- Required for governance participation
- Fee discounts create holding incentive
- Staking rewards encourage long-term holding
- Credit collateral drives accumulation
2. Platform Growth
- More users = more transaction volume
- More fees = more buybacks and burns
- Network effects compound value
- Multi-chain expansion multiplies utility
3. Governance Premium
- Control over $500M+ protocol
- Treasury management rights
- Fee parameter adjustments
- Strategic direction influence
4. Scarcity Mechanics
- Fixed 1B supply cap
- Continuous burning (deflationary)
- Staking locks up supply
- Credit collateral reduces circulation
5. DeFi Integration
- Composable with other protocols
- LP rewards on DEXs
- Yield farming opportunities
- Cross-chain bridges
Token Launch Strategy
Initial DEX Offering (IDO)
Terms:
- Allocation: 150M SBANK (15% of supply)
- Price: $0.10 per SBANK
- Raise Target: $15M
- Platforms: Uniswap, SushiSwap, others
Vesting for Public:
- 20% unlocked at TGE
- 80% linear vest over 12 months
- No penalties for early claiming
Liquidity Provision
Initial Liquidity:
- $5M USDC paired with SBANK
- Locked for 12 months minimum
- LP tokens sent to DAO treasury
- Additional liquidity from ecosystem fund
Exchange Listings
Rollout Strategy:
Phase 1 (Month 1-2):
- DEX listings (Uniswap, SushiSwap, Curve)
- DEX aggregators (1inch, Matcha)
Phase 2 (Month 3-4):
- Mid-tier CEX listings
- Regional exchanges
Phase 3 (Month 5-6):
- Top-tier CEX applications
- Institutional trading desks
Staking Mechanics
How Staking Works
- Deposit SBANK into staking contract
- Select lock period (optional, for multiplier)
- Earn rewards distributed weekly
- Compound or claim anytime
- Withdraw after lock period expires
Reward Calculation
Weekly Reward = (Your Staked SBANK / Total Staked) ×
(Weekly Fees × 30%) ×
Lock Multiplier
Auto-Compounding
Smart Staking:
- Automatically reinvest rewards
- Compound weekly
- Lower gas costs (batched)
- Higher effective APY
Governance Details
DAO Structure
SafeBank DAO Composition:
- SBANK token holders (primary voting power)
- Delegated voting allowed
- Multisig council for emergency actions
- Technical committee for upgrades
Voting Mechanisms
Standard Voting:
- Simple majority (>50%)
- Quorum: 10M SBANK minimum
Critical Changes:
- Supermajority (>66%)
- Quorum: 50M SBANK minimum
- Examples: token economics changes, major protocol upgrades
Quadratic Voting:
- Used for contentious decisions
- Cost to vote = (votes)²
- Prevents whale dominance
Treasury Management
DAO Treasury Contents:
- SBANK tokens
- Stablecoins (USDC, DAI)
- Protocol-owned liquidity
- Yield-bearing positions
Treasury Uses:
- Protocol development funding
- Security audits and bug bounties
- Marketing and business development
- Strategic investments
- Emergency reserves
Risk Management
Token Price Volatility
Mitigation:
- Deep liquidity across multiple pools
- Treasury stabilization mechanisms
- Long-term vesting reduces sell pressure
- Utility creates organic demand
Centralization Risks
Mitigation:
- Progressive decentralization roadmap
- No single entity controls >10%
- Quadratic voting for critical decisions
- Time-weighted voting power
Regulatory Concerns
Mitigation:
- Utility token classification (not security)
- Legal opinions from top firms
- Compliance with evolving regulations
- Geographic restrictions where needed
- KYC for large holders (if required)
Roadmap Integration
Phase 1: Token Launch (Q2 2026)
- IDO on major DEXs
- Initial liquidity provision
- Staking contracts live
- Governance framework activated
Phase 2: Exchange Listings (Q3 2026)
- CEX listings begin
- Cross-chain bridges deployed
- Expanded DeFi integrations
Phase 3: Utility Expansion (Q4 2026)
- Credit collateral system live
- Merchant incentive programs
- Cashback rewards activated
Phase 4: Full DAO (2027)
- Complete governance handoff
- Treasury fully controlled by DAO
- Protocol parameter control transferred
- Community-driven development
Phase 5: Multi-Chain (2027-2028)
- Ethereum, Polygon, Base, Arbitrum
- Cross-chain governance
- Unified token across networks
Token Metrics Summary
At Launch:
- Market Cap (FDV): $100M (at $0.10)
- Circulating Supply: 150M (15%)
- Initial Liquidity: $5M
- Price: $0.10
Year 1 Targets:
- Market Cap: $500M - $1B
- Price: $0.50 - $1.00
- Circulating Supply: ~300M (30%)
- TVL in Protocol: $100M+
Year 3 Targets:
- Market Cap: $2B - $5B
- Price: $2.00 - $5.00
- Circulating Supply: ~500M (50%)
- TVL in Protocol: $1B+
Competitive Analysis
| Feature | $SBANK | UNI | AAVE | COMP |
|---|---|---|---|---|
| Governance | ✅ | ✅ | ✅ | ✅ |
| Fee Discounts | ✅ | ❌ | ✅ | ❌ |
| Staking Rewards | ✅ | ❌ | ✅ | ❌ |
| Credit Collateral | ✅ | ❌ | ✅ | ✅ |
| Cashback | ✅ | ❌ | ❌ | ❌ |
| Deflationary | ✅ | ❌ | ❌ | ❌ |
| Multi-Utility | ✅ | ⚠️ | ⚠️ | ⚠️ |
Conclusion
$SBANK is designed as a multi-utility token that powers every aspect of the SafeBank ecosystem:
✅ Governance over a autonomous banking protocol
✅ Economic benefits through fees, staking, and cashback
✅ Credit access as collateral for lending
✅ Deflationary through systematic burns
✅ Sustainable revenue model supporting token value
The token economics align all stakeholders — users, merchants, developers, and investors — toward the common goal of building the world's first fully autonomous, privacy-preserving digital bank.