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Simple Agreement for Future Tokens
I need a Simple Agreement for Future Tokens (SAFT) to secure investment for a blockchain startup, outlining the terms for future token issuance once the platform is operational. The document should comply with Belgian regulations, include a clear vesting schedule, and specify the rights and obligations of both parties.
What is a Simple Agreement for Future Tokens?
A Simple Agreement for Future Tokens (SAFT) lets blockchain startups raise funds by promising investors future cryptocurrency tokens once their platform launches. It works like a forward contract, giving investors early access to tokens while helping companies comply with Belgian financial regulations, particularly around securities and crowdfunding laws.
Under Belgian law, SAFTs structure token investments as convertible instruments, similar to how startups use convertible notes. The agreement specifies key details like token allocation, delivery conditions, and investor rights. This approach helps protect both parties and addresses Belgian regulators' concerns about token sales while supporting innovation in the blockchain sector.
When should you use a Simple Agreement for Future Tokens?
Use a Simple Agreement for Future Tokens when your blockchain startup needs to raise capital before launching its platform or issuing tokens. This agreement works especially well for Belgian companies developing decentralized applications, crypto platforms, or blockchain infrastructure who need early-stage funding but can't distribute tokens immediately.
The SAFT becomes crucial during pre-sale fundraising rounds when you have sophisticated investors interested in your project. It helps navigate Belgian securities regulations while giving investors contractual rights to future tokens. Companies building complex blockchain systems that require significant development time before token distribution find this particularly valuable for maintaining legal compliance while securing necessary funding.
What are the different types of Simple Agreement for Future Tokens?
- Basic SAFT: Designed for straightforward token offerings, covering essential terms like token price, distribution timeline, and investor rights
- Milestone-Based SAFT: Links token distribution to specific project achievements or development stages
- Multi-Round SAFT: Structures token allocation across different investment phases with varying terms
- Security Token SAFT: Specifically formatted to comply with Belgian securities regulations for tokenized securities
- Hybrid SAFT: Combines token rights with traditional equity or debt elements, popular among Belgian fintech startups
Who should typically use a Simple Agreement for Future Tokens?
- Blockchain Startups: Companies developing blockchain platforms or decentralized applications who need pre-launch funding
- Professional Investors: Venture capitalists, angel investors, and investment funds seeking early access to promising crypto projects
- Legal Counsel: Corporate lawyers specializing in blockchain and securities law who draft and review SAFT agreements
- Financial Regulators: Belgian FSMA officials who oversee token offerings and ensure compliance with securities laws
- Token Project Developers: Technical teams responsible for meeting development milestones tied to token distribution
How do you write a Simple Agreement for Future Tokens?
- Project Details: Document your token's technical specifications, utility, and planned distribution mechanism
- Investment Terms: Define token price, discount rates, and vesting schedules for early investors
- Compliance Check: Review Belgian FSMA guidelines on token offerings and securities regulations
- Investor Information: Gather KYC documentation and accreditation status of potential investors
- Development Timeline: Create clear project milestones linked to token distribution phases
- Risk Disclosures: List potential project risks and market factors affecting token value
- Platform Generation: Use our system to generate a legally compliant SAFT tailored to Belgian requirements
What should be included in a Simple Agreement for Future Tokens?
- Token Description: Detailed specifications of the future tokens, including utility and technical features
- Investment Terms: Purchase price, quantity, and conditions for token delivery
- Distribution Triggers: Clear milestones or events that activate token distribution
- Investor Rights: Voting powers, transfer restrictions, and pre-emptive rights
- Risk Disclosures: Project-specific and market risks affecting token value
- Compliance Statements: References to Belgian securities laws and FSMA requirements
- Dispute Resolution: Belgian jurisdiction and applicable law clauses
- Termination Rights: Conditions for agreement cancellation and refund procedures
What's the difference between a Simple Agreement for Future Tokens and a Simple Agreement for Future Equity?
A Simple Agreement for Future Tokens (SAFT) differs significantly from a Simple Agreement for Future Equity (SAFE), though both are investment instruments. While they share a similar structure for early-stage funding, their underlying assets and regulatory frameworks in Belgium are quite different.
- Asset Type: SAFTs promise future cryptocurrency tokens, while SAFEs convert to company equity shares
- Regulatory Framework: SAFTs must comply with Belgian crypto and securities regulations, whereas SAFEs follow traditional equity investment rules
- Conversion Triggers: SAFTs typically convert upon token launch or platform completion, while SAFEs convert during equity funding rounds
- Risk Profile: SAFTs carry additional technology and crypto market risks not present in SAFEs
- Investor Rights: SAFT holders receive tokens with platform utility, while SAFE holders get shareholder rights and potential dividends
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