Saft Agreement Template

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Contributions are welcome. To contribute, please send an e-mail to the SAFT project at the following address: saft-project@protocol.ai. In an attempt to comply with SEC rules and address some of the uncertainties related to the regulation of these digital assets, some recently implemented ICOs have launched a Simple Agreement for Future Tokens (SAFT) as well as an accompanying memorandum of offer. Saft, which is behind Y Combinator`s Simple Agreement for Future Equity (SAFE), is an agreement that offers future tokens to accredited investors. Instead of offering an immediately available token, these SAFTs offer the right to have a token during a trigger event. SAFTS must be private offers excluded from SEC registration. In particular, Protocol Labs, Inc. At the beginning of this year, the right to buy filecoin tokens via a SAFT. Since then, several other ICOs have started with SAFTS, including Unikrn, StreamCoin Labs, and Kik Interactive. The developers of a decentralized token-based system each create an Addressed Contract (SAFT) with their authorized investors. The certificate provides that the investor will support the project and subsequently receive tokens at a discounted price.

The company that develops the token network registers with the SEC, but does not currently spend tokens. The founders and their team then use the financial resources acquired to develop the network. Initially, investors do not receive tokens. In the context of some ICO launches, investors are distinguished by a SAFT and an accompanying memorandum of offer. The SAFT is an agreement signed by both the issuer and the buyer of the future tokens. The general SAFT model contains different provisions that we outline below. In the past, the SEC has spoken out on SAFEs regarding crowdfunding and mentioned that SAFEs are a kind of security and warned investors to be cautious. SAFTs, limited to accredited investors, will likely raise less of concern for the SEC because they are not aimed at retail investors. However, it remains to be seen whether the SEC will also consider SAFTs securities in a similar context with SAFEs. While any decision as to whether the SAFT is a security will likely be based on the specific use of the underlying tokens, it seems likely that many SAFTs will be considered securities because buyers invest money (or other digital assets) in the rights to the future underlying token, with the expectation of gains on the efforts of SAFT issuers. .

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