How Does a SAFT (Simple Agreement for Future Tokens) Differ from a SAFE (Simple Agreement for Future Equity)?

A SAFE is an agreement used in traditional startup funding, granting the investor the right to future equity in the company, typically at a discount. A SAFT is an agreement granting the investor the right to future utility tokens once the network is functional.

The key difference is the deliverable: equity for a SAFE, and utility tokens for a SAFT. The SAFT is structured to delay the sale of the utility token until it is functional, aiming to avoid immediate security classification.