What is Safemoon V2?

What Is SafemoonV2?

SafemoonV2 is the second-generation token of the SafeMoon project, operating on the BNB Smart Chain (BSC). This upgrade refines and continues SafeMoon’s tokenomics, incorporating features such as transaction tax, holder rewards (where a portion of transaction fees is proportionally distributed to token holders), automated liquidity injection into trading pairs, and a burn mechanism—all designed to boost liquidity and incentivize holding.

With the V2 upgrade, SafeMoon unified its token denomination through a token consolidation and new smart contract, creating a more streamlined supply structure and a foundation for future functionality and maintenance. For beginners, SafemoonV2 can be understood as a BEP-20 token with built-in transaction distribution rules.

What Are the Current Price, Market Cap, and Circulating Supply of SafemoonV2 (SFM)?

As of 2026-01-21, according to CoinMarketCap and Gate market pages, SFM operates under the V2 contract. Its price, market capitalization, and circulating supply are subject to real-time market changes. Due to the consolidation during the V2 upgrade, circulating supply and historical data metrics changed—meaning V1 and V2 data are not directly comparable.

How to check: On Gate’s market page or public sources like CoinMarketCap, search for “SFM” and monitor the “Price,” “Market Cap,” and “Circulating Supply” fields. Always pay attention to the “Contract Address” and “Contract Version.” Upgrades and tax settings can impact trading depth and effective circulating supply; always refer to the most recent data (timestamp: 2026-01-21).

Who Created SafemoonV2 (SFM) and When?

The SafeMoon project originally launched on BSC in 2021. The V2 contract was progressively rolled out from late 2021 through 2022, marking the migration from V1 to V2 and consolidating the token supply. The primary aim of V2 was to enhance contract maintainability, standardize token measurement, and optimize tax structures. These milestones are based on public project announcements and community records (as of public data available until October 2024).

It’s important to note that SafeMoon has attracted media attention due to team and governance controversies, prompting ongoing scrutiny around transparency and project execution. Understanding this context is vital for assessing the project’s sustainability and risk profile.

How Does SafemoonV2 (SFM) Work?

SafemoonV2 is built on the BEP-20 standard, with its core tokenomics structured as follows:

• Transaction Tax: Each transfer or trade incurs a fixed fee set by contract or governance parameters; portions are allocated for rewards and liquidity injection. Users should anticipate these fees when transferring or trading.
• Reflection Rewards: A share of transaction fees is automatically redistributed to holders based on their balance, so simply holding SFM may gradually increase your balance.
• Automatic Liquidity: A portion of transaction fees is added to liquidity pools, improving trading depth and price stability.
• Burn Mechanism: Some tokens are permanently removed from circulation, theoretically reducing supply.
• Token Consolidation: V2 executed a consolidation of V1 tokens, unifying contracts and supply metrics for better maintenance.

Term explanations: BEP-20 is the token standard for BSC; a liquidity pool is a smart contract that provides trading depth; slippage refers to the difference between expected and actual execution prices—affected by fees and liquidity depth; gas fees are blockchain transaction costs.

What Can SafemoonV2 (SFM) Be Used For?

Primary use cases of SafemoonV2 include:

• Earning Holder Rewards: Through the reflection mechanism, long-term holders may receive a share of transaction fees.
• Participating in the Community Ecosystem: SFM can be used for payments or rewards in supported applications, depending on integration scope.
• Trading & Portfolio Management: Buy, sell, or rebalance SFM in supported pairs—always consider tax rates and slippage.

For newcomers, it’s crucial to understand that transactions can trigger fees—even sending tokens to friends or wallets may incur tax. Always verify the current tax rate settings.

What Wallets and Extensions Support SafemoonV2 (SFM)?

• Exchange Custodial Wallets: Opening an account on Gate allows the platform to securely hold your SFM—ideal for frequent traders and beginners.
• Browser Extension Wallets: BEP-20 compatible extension wallets can connect to BSC dApps for on-chain interactions. Always back up your seed phrase and private key to prevent loss.
• Cold Wallets: Hardware devices that store private keys offline offer higher security—best for long-term holding or larger amounts.

When choosing a wallet, ensure it supports BSC, allows custom token contract addresses, provides robust backup options, and enables adjustment of slippage and gas fee parameters.

What Are the Main Risks and Regulatory Considerations for SafemoonV2 (SFM)?

• Contract & Tax Rate Risks: Tax parameters can be changed, impacting user experience and returns. Always refer to official announcements and blockchain explorers.
• Liquidity & Price Risks: Fluctuations in pool depth can cause significant slippage and price volatility; market cap and supply metrics are affected by contract changes.
• Governance & Disclosure: Lack of transparency in community or team governance increases uncertainty.
• Regulatory Risk: As of October 2024, public reports indicate that related parties have faced regulatory scrutiny. Participants should stay informed about local compliance requirements and tax obligations.

Practical tips: Test with small transfers first, verify current tax rates and contract addresses, diversify asset storage, and avoid placing all funds in one platform or wallet.

How Do I Buy and Safely Store SafemoonV2 (SFM) on Gate?

Step 1: Register & Complete KYC. Go to Gate’s website or app, create an account, and follow instructions to verify your identity—this secures your account and withdrawal rights.

Step 2: Deposit Funds. Deposit fiat or stablecoins such as USDT from another wallet. Double-check network selection (e.g., BSC or others) and deposit address accuracy.

Step 3: Find Trading Pair. On Gate’s spot trading page, search “SFM” or “SafemoonV2.” If a relevant trading pair (e.g., SFM/USDT) is listed, proceed to the order screen.

Step 4: Place Order & Settle. Choose limit or market orders as needed; pay attention to prompts for “slippage,” “fees,” and “tax details.” After submitting your order, check your filled trades and holdings.

Step 5: Secure Storage. On Gate, enable two-factor authentication and withdrawal whitelist features. If transferring to a self-custody wallet, test with a small withdrawal first; once confirmed received, transfer larger amounts. Carefully back up your private key or seed phrase.

Note: If SFM spot trading is not available on Gate, use Gate’s Web3 wallet to connect to BSC for decentralized swaps—manually set reasonable slippage and gas fees. Only interact with official contract addresses to avoid counterfeit tokens.

How Is SafemoonV2 (SFM) Different From Shiba Inu (SHIB)?

• Chain & Standard: SafemoonV2 operates on BSC using BEP-20; Shiba Inu (SHIB) is on Ethereum as an ERC-20 token. Network fees and confirmation times differ.
• Tokenomics: SafemoonV2 features transaction tax, reflection rewards, and automated liquidity; SHIB does not have built-in transaction taxes but relies more on community-driven initiatives like burns.
• Use Cases & Ecosystem: SafemoonV2 emphasizes holder rewards and community apps; SHIB benefits from broad Ethereum ecosystem integration and related projects. Actual utility depends on integration scenarios.
• Fees & User Experience: BSC typically offers lower gas fees than Ethereum; SafemoonV2’s tax impacts transaction costs, while SHIB costs are mainly influenced by Ethereum gas fees.

Summary of SafemoonV2 (SFM)

SafemoonV2’s tokenomics combines transaction tax, reflection rewards, automatic liquidity provision, and burning mechanisms—all standardized under its V2 contract with consolidated supply measurement. It appeals to users interested in automatic distribution by simply holding tokens but requires understanding of how tax rates, slippage, and contract parameters impact transactions and returns. In practice, check live data on Gate before trading; start with small test orders; always verify official contract addresses; adjust slippage/gas settings appropriately; and diversify asset storage between exchange custody and cold wallets for optimal security. With ongoing governance/regulatory uncertainties, staying updated via official channels is crucial for effective risk management when participating in the community or allocating assets.

FAQ

What’s the Difference Between SafemoonV2 and V1? Why Was an Upgrade Needed?

SafemoonV2 is an upgraded version of SafemoonV1 with improved smart contract code for enhanced security and efficiency. The upgrade optimized fee structures, increased transaction speed, and fixed previous vulnerabilities. V1 holders need to bridge their tokens using official tools to access improved usability and ecosystem support under V2.

What Is SafemoonV2’s Tokenomics? Are There Fees for Buying/Selling?

SafemoonV2 charges an 8% fee on both buy and sell transactions. These fees are allocated to liquidity pools, marketing efforts, and holder rewards. By holding SafemoonV2 tokens you automatically receive reflection rewards—no action required—benefiting long-term holders.

What Should I Watch Out for When Buying SafemoonV2 on Gate?

Before purchasing SafemoonV2, be aware of its high volatility as a new token type. Set a strong password with two-factor authentication to secure your funds. Avoid clicking unknown links. Start with small amounts you can afford to lose, and always follow official updates to avoid scams.

How Does SafemoonV2’s Reflection Reward Mechanism Work?

The reflection mechanism means every buy or sell incurs a fee that is automatically distributed among all holders’ accounts. You don’t need to take any action—simply holding SafemoonV2 in your wallet entitles you to these passive rewards. The amount you earn depends on your holdings and overall market activity.

What Are the Main Use Cases & Ecosystem Directions for SafemoonV2?

SafemoonV2 aims to build a comprehensive crypto platform including proprietary wallets, exchanges, and other ecosystem applications. The team continues to launch new products/services expanding utility for the token. Investors should monitor official announcements for updates; Gate provides convenient ways to track project news and price movements.

Safemoon V2 (SAFEMOON) Key Term Reference

• Token Burn: Permanently reduces circulating supply by sending tokens to unusable addresses—potentially increasing value for remaining tokens.
• Liquidity Pool: Smart contract-locked pairs that provide liquidity for trading pairs so users can swap tokens smoothly.
• Transaction Tax: Fees charged per token transfer; portions may be burned or distributed as holder rewards.
• Anti-Dilution Protection: Mechanisms such as burning tokens or transaction taxes that prevent unlimited supply inflation.
• Smart Contract: Self-executing code on blockchain managing token issuance, burns, transfers, etc.
• Holder Rewards: Passive fee-based earnings automatically distributed to those holding tokens—no action required.

SafeMoon (SAFEMOON) Reference & Further Reading

• Official Website/Whitepaper:

  • https://safemoon.com
  • https://safemoon.gitbook.io/safemoon/

• Development/Documentation:

  • https://github.com/safemoonprotocol
  • https://docs.safemoon.com

• Authoritative Media/Research:

  • https://safemoon.com/news
  • https://safemoon.com/blog