Keeping SAFU: How Binance Built a 'Safety Shield' for User Assets with $1.75 Billion?

In the crypto world, 'safety' has always been a core anxiety for users. Binance's SAFU fund (Security Asset Fund for Users) has delivered a 'turnaround' report in five years: from the 2019 hacking incident to the fund's assets soaring to $1.757 billion in 2024 (a 76% increase!), how did it become the industry benchmark?

① Birth and Evolution in Crisis

In 2018, Binance pioneered the SAFU mechanism, allocating 10% of each transaction fee to an independent fund specifically for user compensation in extreme cases. During the 2019 hacking incident, SAFU fully covered the loss of 7,000 BTC (approximately $40 million), validating its 'safety net' capability for the first time.

② Victory of Long-termism

Through continuous accumulation and asset appreciation (such as the rise in BTC and BNB prices), the SAFU fund has surged from an initial scale of about $1 billion to $1.757 billion, becoming one of the largest emergency reserve pools in the crypto space. This 'preparation for unforeseen circumstances' strategy has kept Binance steady amid multiple market fluctuations.

③ Cornerstone of Transparency and Trust

Every utilization of SAFU is publicly disclosed, such as the transfer of $1 billion USDC to a dedicated wallet in 2024, reinforcing fund isolation. This transparent operation, in contrast to the vague handling by traditional financial institutions, greatly enhances user confidence.

Future Insights: SAFU is not only Binance's 'safety backing', but also promotes the establishment of standardized risk control systems in the industry. In today's increasingly stringent regulations, those who can protect user assets will win the next decade.

Keeping SAFU is not just a slogan, but a commitment that Binance fulfills with real money. What are your thoughts on such investor protection mechanisms? Welcome to discuss.