What Is the Concept of the “SAFT” (Simple Agreement for Future Tokens) and Why Was It Developed?

The SAFT, or Simple Agreement for Future Tokens, is a legal framework designed to help token issuers raise capital while attempting to comply with US securities laws. It was developed to separate the fundraising event from the token's ultimate functionality.

Investors initially buy the SAFT, which is treated as a security, allowing the issuer to use exemptions like Regulation D. The actual utility tokens are delivered later, once the network is functional, with the aim that the delivered token is no longer a security.