> ## Documentation Index
> Fetch the complete documentation index at: https://docs.safefoundation.org/llms.txt
> Use this file to discover all available pages before exploring further.

# Economics

> How SAFE, staking, incentives, fees, and governance support the Safenet network.

<Note>
  The economic parameters described on this page, including fees and rewards, are proposed values, pending SafeDAO approval, and may change before Safenet Aegis launches.
</Note>

SAFE is central to Safenet's economic and governance model.

SAFE supports staking, delegation, participant incentives, and SafeDAO governance. Safenet Aegis also introduces transaction fees paid in USDC, creating usage-based revenue for Sentinels alongside SAFE-denominated incentives.

## SAFE utility

SAFE connects network participation, incentives, and governance.

SAFE holders can:

* **Stake or delegate SAFE** to support Validators.
* **Receive SAFE-denominated rewards** through eligible Validator or Delegator participation.
* **Participate in SafeDAO governance** over Safenet's economic and protocol parameters.

Validators participate through staked SAFE, while SAFE holders who do not operate Validator infrastructure can delegate to Validators.

See [Staking](/safenet-aegis/staking/overview) for staking and delegation.

## SAFE rewards and subsidies

SafeDAO-approved SAFE funding supports Safenet participants during the network's growth phase.

Validators and Delegators can receive SAFE-denominated rewards when the applicable participation requirements are met. Validators that do not meet the required participation threshold do not receive rewards for that period.

Sentinels can also receive SAFE-denominated rewards subject to their own participation requirements.

These SAFE incentives are separate from the USDC transaction fees earned by Sentinels.

See [Rewards](/safenet-aegis/staking/rewards) for Validator and Delegator rewards.

## USDC transaction fees

Safenet Aegis introduces USDC-denominated transaction fees that create usage-based revenue for Sentinels performing security checks.

These fees are separate from SAFE-denominated rewards and subsidies.

SafeDAO governs the fee amount and can allocate a share of Safenet fee revenue to DAO-controlled protocol funds.

See [Fees](/safenet-aegis/economics/fees) for current fee parameters, distribution, and the SafeDAO fee share.

## SafeDAO governance

SafeDAO governs key economic parameters across Safenet.

This includes parameters related to:

* Transaction fees and their distribution.
* The SafeDAO share of protocol fee revenue.
* Sentinel bonds and slashing.
* The Sentinel and Validator sets, and other governed protocol parameters.

Changes follow the applicable SafeDAO governance process.

See [Governance](/safenet-aegis/governance/overview) for how Safenet parameters are governed.

## Sentinel bonds and accountability

Sentinels post economic bonds when participating in Safenet checks.

Bonds create accountability around Sentinel decisions. Depending on the outcome and applicable protocol rules, a Sentinel can recover its bond or have part of it slashed.

This mechanism is separate from SAFE staking, SAFE-denominated incentives, and USDC transaction-fee revenue.

See [Sentinels](/safenet-aegis/operate-safenet/sentinels) for the Sentinel participation model.

<CardGroup cols={2}>
  <Card title="Staking" href="/safenet-aegis/staking/overview">
    Stake or delegate SAFE to participate in Safenet.
  </Card>

  <Card title="Fees" href="/safenet-aegis/economics/fees">
    Learn how Safenet transaction fees work.
  </Card>

  <Card title="Rewards" href="/safenet-aegis/staking/rewards">
    Learn how Validator and Delegator rewards work.
  </Card>

  <Card title="Governance" href="/safenet-aegis/governance/overview">
    Learn how SafeDAO governs Safenet parameters.
  </Card>
</CardGroup>