Clear DefinitionsSimple Agreement for Future Tokens
1 min read
Pronunciation
[sim-puhl uh-gree-muhnt for fyoo-chur toh-kens]
Analogy
A SAFT is like purchasing a voucher for a product not yet manufactured—you invest now in exchange for the right to receive tokens later.
Definition
Key Points Intro
SAFTs structure early fundraising via:
Key Points
Accredited investors: Restricted to qualified participants under securities laws.
Deferred delivery: Tokens delivered after network launch or token generation event.
Regulatory compliance: Treated as a securities sale, with appropriate filings.
Standardized terms: Defines purchase amount, price, vesting, and warranties.
Example
A blockchain startup raises $5 million via SAFT with institutional investors, delivering tokens 6 months after mainnet launch with a 12‑month vesting.
Technical Deep Dive
SAFT document references future token contract address and vesting schedule. Investors sign off‑chain agreements and fund via wire transfer or stablecoin. Post‑launch, a claim contract verifies investor identity and vesting before releasing tokens.
Security Warning
SAFTs carry legal complexity and counterparty risk; engage experienced securities counsel.
Caveat
SAFT framework may not be recognized in all jurisdictions; local laws vary.
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