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Simple Agreement for Future Tokens
I need a Simple Agreement for Future Tokens (SAFT) for a startup that plans to issue tokens once its blockchain platform is operational. The agreement should outline the terms of the investment, including the conversion of the investment into tokens, compliance with Irish regulations, and a clear timeline for token issuance.
What is a Simple Agreement for Future Tokens?
A Simple Agreement for Future Tokens (SAFT) is a legal contract that helps Irish blockchain companies raise funds before launching their digital tokens or cryptocurrencies. It works like a promise - investors provide capital now in exchange for tokens that will be delivered once the platform is up and running.
Under Irish financial regulations, SAFTs are structured as investment contracts, giving early backers special rights while protecting both parties. These agreements have become popular among Irish tech startups because they offer a clear framework for token presales while addressing compliance requirements around securities and digital assets.
When should you use a Simple Agreement for Future Tokens?
Use a Simple Agreement for Future Tokens when your Irish blockchain startup needs early-stage funding but hasn't yet developed its digital tokens or platform. This agreement helps you secure investment capital while giving your team time to build the technology, particularly when you're working on complex blockchain projects that require significant development before launch.
The SAFT structure works especially well for Irish companies navigating the gap between initial fundraising and token distribution. It provides clear documentation for the Central Bank of Ireland's compliance requirements and helps protect both investors and developers during the crucial development phase before tokens exist.
What are the different types of Simple Agreement for Future Tokens?
- Standard SAFT: The basic version used by most Irish blockchain startups, focusing on token delivery terms and investment amounts
- Tiered SAFT: Includes multiple investment levels with different token pricing and vesting schedules
- Hybrid SAFT: Combines token rights with traditional equity elements, popular among established Irish companies entering blockchain
- Project-Specific SAFT: Tailored for specific blockchain use cases, with customized technical milestones and delivery conditions
- Regulated SAFT: Enhanced compliance features for projects falling under specific Central Bank of Ireland oversight
Who should typically use a Simple Agreement for Future Tokens?
- Blockchain Startups: Irish tech companies developing token-based platforms use SAFTs to secure early funding while building their products
- Angel Investors: High-net-worth individuals who provide capital in exchange for future token rights at preferential rates
- Legal Counsel: Specialist technology lawyers who draft and review SAFTs to ensure compliance with Irish securities laws
- Venture Capital Firms: Investment companies that use SAFTs to add blockchain projects to their portfolios
- Compliance Officers: Internal team members who ensure SAFT terms align with Central Bank of Ireland requirements
How do you write a Simple Agreement for Future Tokens?
- Project Details: Document your token's technical specifications, intended use case, and development timeline
- Investment Terms: Define token price, vesting schedule, and total allocation for investors
- Company Information: Gather your Irish company registration details, director information, and blockchain project documentation
- Compliance Check: Review Central Bank of Ireland guidelines on token offerings and securities regulations
- Platform Use: Our system generates custom SAFTs that include all required elements under Irish law, reducing drafting complexity
- Internal Review: Have your technical team verify token specifications and delivery mechanisms match the agreement terms
What should be included in a Simple Agreement for Future Tokens?
- Party Details: Full legal names, addresses, and registration numbers of the token issuer and investors
- Token Specifications: Detailed description of future tokens, including technical features and utility
- Investment Terms: Purchase amount, token price, and delivery conditions upon platform launch
- Vesting Schedule: Clear timeline for token distribution and any lock-up periods
- Risk Disclosures: Statements about project risks and regulatory compliance under Irish law
- Termination Rights: Conditions for agreement cancellation and refund procedures
- Governing Law: Explicit statement of Irish law jurisdiction and dispute resolution process
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) in several key aspects, though both are used for early-stage fundraising in Ireland.
- Asset Delivered: SAFTs promise future blockchain tokens, while SAFEs convert to company equity shares
- Regulatory Framework: SAFTs must comply with both securities and cryptocurrency regulations under Irish law, whereas SAFEs only deal with traditional company law
- Trigger Events: SAFTs activate upon platform launch and token creation, while SAFEs convert during equity funding rounds
- Investment Purpose: SAFTs suit blockchain projects needing development capital, whereas SAFEs work for traditional startups seeking equity investment
- Risk Profile: SAFTs carry additional technical and regulatory risks related to token development and cryptocurrency markets, unlike SAFEs' focus on standard business risks
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