What is a Gnosis Safe?
What is a Gnosis Safe, and how does it work?
Gnosis Safe is a smart contract multi-sig wallet running on Ethereum that requires a minimum number of people to approve a transaction before it can occur. This added layer of security helps to protect against the loss or theft of funds.
Gnosis Safes are commonly used to manage pooled DAO funds. DAOs often require a certain number of members to sign off on any fund transfers. DAO actions are generally voted upon by all members and then executed by the core group of signers.
A multi-sig Gnosis Safe works by requiring multiple signatures, or "keys," in order to execute a transaction. When the safe is created, the user specifies the number of keys that are required to sign a transaction. For example, if the user specifies that three keys are required, then at least three of the keys associated with the safe must be used to sign a transaction before it can be executed.
To submit a transaction with a Gnosis Safe, you would first need to create the transaction on the Ethereum network. This can typically be done using a wallet or other Ethereum-enabled application. Once the transaction has been created, it must be signed by the required number of keys associated with the safe. This process typically involves each key holder using their own private key to sign the transaction. Once the transaction has been signed by the required number of keys, it can be submitted to the Ethereum network to be executed.
An owner is a signer of the Gnosis Safe smart contract wallet. Owner accounts sign off on transactions on the Gnosis Safe smart contract, such as transferring funds from the wallet.
The threshold is the number of signers required to confirm a transaction. Once the threshold of owner accounts have confirmed a transaction, the Safe transaction can be executed.
Delegates are non-owners that are authorized to initiate transactions for a specific Safe, which would then show up on the official Gnosis Safe interface. Delegates need to be authorized by an owner of a Safe.
Creating a Gnosis Safe on Tally creates the exact same instance of Gnosis’s smart contract that Gnosis’s own app does, with the added benefit of managing from the same Tally organization that you may be using for Governor and Tokenless DAOs. Having your Gnosis Safe linked on Tally will also allow users to one day take advantage of Tally features such as the Create Proposal tool and Recipes.