How Does a 'Simple Agreement for Future Tokens' (SAFT) Work? ⎊ Path

How Does a ‘Simple Agreement for Future Tokens’ (SAFT) Work?

A SAFT is a legal contract used for fundraising by pre-selling tokens to accredited investors before the token network is launched. The investors provide capital now, and in return, they receive the future tokens once the network is live and operational.

It is structured to comply with securities laws by treating the initial investment as a security, while the future utility token is not.

What Are the Risks of a Simple Agreement for Future Tokens (SAFT)?

What Is an SAFT (Simple Agreement for Future Tokens)?

What Are the Tax Implications for a US Investor upon the Conversion of a SAFT to a Token?

What Regulatory Exemption Is Commonly Used for Selling a SAFT to US Investors?

How Do DAOs Use ‘SAFTs’ (Simple Agreements for Future Tokens) in Capital Raising?

How Does the SAFT Model Attempt to Satisfy the “Functional Network” Test?

How Does the Concept of ‘Accredited Investor’ Apply to Security Token Sales?

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

Glossar

SAFT

Contract ⎊ A binding agreement, common in early-stage crypto fundraising, that grants an investor the right to receive a specified amount of a digital token upon a future qualifying event, such as a token generation event or priced financing round.