Preface

Since its launch in March 2021, SafeMoon (SFM) has quickly become a focus in the cryptocurrency field. As a typical MEME token, SFM is built on the Binance Smart Chain (BSC) and has attracted a large number of investors and community support through its innovative token economic model. It is not just a digital asset, but also a project dedicated to promoting the concept of decentralized finance (DeFi). This article will delve into SafeMoon’s token economic model, project background, market performance, and the expansion of its ecosystem.

1. Project Background

The SafeMoon project was created by a decentralized team and aims to attract more users to participate through innovative decentralized finance (DeFi) products. One of SafeMoon’s core features is its reflection mechanism, which charges a certain transaction tax on each transaction and uses the tax to increase liquidity pools, reward long-term holders, and burn tokens, gradually reducing the supply.

The project claims to aim at creating a stable and long-term growth cryptocurrency, avoiding pure speculation and making it stand out among investors. SafeMoon’s token (SFM) has become a core tool in decentralized finance and has expanded its influence in the DeFi field by continuously innovating and introducing more features such as SafeMoon Swap and SafeMoon Wallet.

Now acquired by VGX, source:safemoon Official Website

2. Token Economic Model

SFM is the upgraded version V2.0 token of Safemoon. The SafeMoon protocol is a community-driven, fairly launched DeFi token. Three simple functions occur in each transaction: reflection, LP acquisition, and burn.

The tokenomics of SafeMoon (SFM) is one of the key factors to its success. The model includes several important elements:

• Total Supply: The total supply of SafeMoon (SFM) is 1,000,000,000,000,000 tokens (i.e. 1 quadrillion).
• Trading Tax: A 10% tax will be charged on each transaction, with 5% distributed to existing token holders and 5% used to increase the liquidity pool.
• Token Burning Mechanism: By regularly burning a portion of the tokens, the supply in the market is reduced, increasing the scarcity of the tokens.
• Reward Mechanism: Holders receive rewards based on the amount of SafeMoon (SFM) tokens they hold and participate in the reflection mechanism.

This unique tokenomic model helps attract long-term holders and ensures the market stability of the token. The tax mechanism for each transaction not only enhances liquidity but also rewards investors willing to hold SafeMoon (SFM).

This token is currently in the ST stage, source:Gate.io Spot Trading

3. Recent Updates and Hot Topics

As of early 2025, SafeMoon (SFM) continues to attract a large number of investors and community attention. The project’s innovative developments such as SafeMoon Swap and SafeMoon Wallet further enhance SafeMoon’s ecosystem, making it not just a token, but a multi-functional decentralized financial platform.

• SafeMoon Swap: The platform allows users to exchange multiple cryptocurrencies, and users who hold SafeMoon tokens on the platform can earn profits by providing liquidity.
• SafeMoon Wallet: Designed specifically for SafeMoon (SFM) token holders, allowing users to store and manage their SafeMoon assets directly.

SafeMoon welcomes a stunning transformation and is rejuvenated after a successful acquisition by VGX Foundation.

After the acquisition, SafeMoon quickly reorganized its token and launched the new SafeMoon Wallet 4.0, which introduces innovative features such as NFT module, real-time balance updates, and multi-currency conversion, while deeply integrating with the Solana ecosystem to improve trading experience and liquidity. In addition, the project has launched the Migration Completion Program to assist early investors in smoothly migrating from the old token to the new one. For more details, please refer to:SafeMoon Token: New Developments After Acquisition by VGX Foundation.

Upgrade of V1 and V2

SafeMoon has gone through two major contract versions since its launch: V1 and V2.

V1 is the initial contract version issued by the project, with an initial supply of up to 1,000,000,000,000,000 (1 quadrillion) tokens.

V2 then combines contract migration with supply, significantly reducing the circulating quantity, making contract management more flexible, and simplifying user trading costs.

Through the V1-V2 migration, SafeMoon better adapts to market demand and technological development while maintaining the advantages of its original economic model, providing the community with a more stable and efficient token trading experience.

Source:safemoon swap

4. Market Performance

The market performance of SafeMoon (SFM) has experienced significant fluctuations. From the surge in March 2021 to stable growth in December 2023, its market capitalization and trading volume have undergone the following changes:

From 2021 to 2023, the market value of SafeMoon (SFM) has experienced significant fluctuations, but it has now gradually recovered and steadily increased. With SafeMoon being listed on multiple mainstream exchanges, confidence among market participants is also gradually being restored.

5. SAFEMOON ecosystem expansion

SafeMoon is not just a token, it is also committed to building a complete ecosystem. Here are its main expansion features:

• SafeMoon Swap: Provides a variety of cryptocurrency asset exchanges, allowing users to earn rewards by providing liquidity.
• SafeMoon Wallet: Designed specifically for SafeMoon token holders, providing functions for storing and managing tokens.
• Cross-chain development: SafeMoon is expanding to multiple blockchains, including support for BSC and other public chain platforms.

By expanding these features, SafeMoon not only enhances user stickiness, but also improves its competitiveness in the market.

Source:safemoon wallet

6. Risks and Challenges

Despite the many innovations and advantages of SafeMoon (SFM), it also faces some market risks and challenges:

• Market Volatility: Due to SafeMoon (SFM) being a MEME Token, its price fluctuates greatly. Although its unique tokenomics help stabilize the market, the price is still heavily influenced by market sentiment.
• Competitive pressure: With the continuous emergence of new MEME tokens, SafeMoon (SFM)’s market share and user base may be threatened.
• Regulatory Risk: As governments around the world tighten regulation on cryptocurrencies, the operation and market performance of SafeMoon (SFM) may be affected.

These risks require the SafeMoon (SFM) project team to continuously innovate, optimize mechanisms, and adapt to changes in the market and regulatory environment.

7. Conclusion

SafeMoon (SFM) has significant influence in the cryptocurrency market as a MEME token. With its unique token economic model, reward mechanism, and innovative ecosystem expansion, SafeMoon continues to attract a large number of investors and community attention. It’s worth noting that after the successful acquisition of SafeMoon by VGX Foundation, the project has undergone a stunning transformation - reorganizing the token and launching the new SafeMoon Wallet 4.0, further enhancing its technical innovation and user experience, while deeply integrating with the Solana ecosystem to improve trading liquidity and cross-chain interoperability.

However, the volatility of the market, intense competition, and constantly changing regulatory environment still pose serious challenges to SafeMoon. Whether SafeMoon can overcome these difficulties in the future and continue to maintain long-term growth will depend on its continuous product innovation and the ability to maintain and enhance user trust.

Summary:

SafeMoon (SFM) has established its position in the cryptocurrency market through its unique token economic model, innovative liquidity pool mechanism, and strong community support. The acquisition of VGX Foundation and its subsequent strategic transformation have injected new vitality and development momentum into SafeMoon. However, the challenges that SafeMoon faces should not be underestimated due to intensified market competition and the constantly changing regulatory environment. In the future, the key to its sustainable development will be the ability to continue attracting investors and users.