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Safenet is currently in Beta. Slashing is not active and the Validator set is permissioned. The mechanics described here reflect the live Beta state.
Safenet uses staked SAFE tokens to align Validator incentives and determine reward eligibility. Validators commit locked SAFE to participate, and SAFE token holders can delegate to a Validator to earn a share of rewards without running a node themselves.

Actors and incentives

Validators run Safenet nodes and stake SAFE toward their own address. In Safenet Beta, Validators also act as Transaction Checkers: they evaluate each transaction against security rules and attest to the result. They must maintain a minimum self-stake to be eligible for proposed Validator rewards. Rewards are proposed to scale with total stake weight and Validator participation rate. If a Validator’s participation falls below a certain threshold in a reward period, neither the Validator nor its Delegators earn rewards for that period. Delegators are any SAFE token holders who stake toward a Validator’s address without operating a node. Delegators earn rewards generated by their delegated stake, with a small percentage reserved as commission for the Validator. In Safenet Beta, neither Validators nor Delegators risk losing staked tokens. There is no slashing mechanism. The primary risk is missed rewards from backing an underperforming Validator.

Types of stake

Validator self-stake is SAFE staked by a Validator toward their own Validator address. A minimum stake is required for the Validator to be eligible for rewards. Delegated stake is SAFE staked by any token holder toward a Validator’s address. It contributes to the Validator’s total stake weight for reward calculation and earns rewards. Both stake types use the same Staking contract with the same deposit and withdrawal mechanics.

Deployed contract

Key characteristics
  • Non-upgradeable: Immutable after deployment
  • No Rewards/Slashing in Beta: Pure ledger for deposits (rewards handled separately)
  • Timelocked Config: All configuration changes require waiting periods
The Staking contract is deployed on Ethereum Mainnet at 0x115E78f160e1E3eF163B05C84562Fa16fA338509. The Staking contract source is available on GitHub: Staking.sol. It has been independently audited and formally verified by Certora. See Security for the full report.

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