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Simple Agreement for Future Tokens
I need a Simple Agreement for Future Tokens (SAFT) for a blockchain startup that plans to issue tokens once the platform is operational. The agreement should outline the terms for accredited investors, including the token allocation, vesting schedule, and compliance with Dutch regulations.
What is a Simple Agreement for Future Tokens?
A Simple Agreement for Future Tokens (SAFT) is a legal contract used by Dutch blockchain companies to sell future rights to their digital tokens before they're actually created. It works like a forward contract, giving investors the right to receive tokens once the company launches its blockchain platform or cryptocurrency.
Under Dutch financial regulations, SAFTs help companies raise funds while staying compliant with securities laws. The agreement protects both parties - investors get guaranteed access to future tokens at a set price, while companies secure early funding without immediately needing a finished product. Just remember: in the Netherlands, these agreements must follow AFM guidelines and securities regulations.
When should you use a Simple Agreement for Future Tokens?
Use a Simple Agreement for Future Tokens when your blockchain startup needs early funding but hasn't built your token infrastructure yet. It's particularly valuable for Dutch tech companies developing decentralized platforms who want to secure investment while their technology is still in development.
The agreement works best when you need to balance investor interest with regulatory compliance in the Netherlands. For example, when raising capital from professional investors who understand blockchain technology, or when your development timeline extends beyond six months. The SAFT structure helps navigate AFM requirements while giving investors a legally binding claim to future tokens.
What are the different types of Simple Agreement for Future Tokens?
- Basic SAFT: The standard Dutch version focusing on token delivery terms and investment parameters
- Milestone-based SAFT: Links token distribution to specific project achievements or development stages
- Price-tiered SAFT: Offers different token prices based on investment timing or amount
- Regulatory-focused SAFT: Enhanced compliance provisions for AFM requirements and Dutch securities laws
- Hybrid SAFT: Combines token rights with traditional equity or debt elements for added investor protection
Who should typically use a Simple Agreement for Future Tokens?
- Blockchain Startups: Dutch tech companies developing token-based platforms who need early-stage funding before their product launch
- Professional Investors: Venture capitalists and angel investors familiar with crypto assets who provide early funding
- Legal Counsel: Specialized blockchain attorneys who draft and review SAFTs to ensure AFM compliance
- Company Directors: Founders and board members who sign and execute the agreements on behalf of the issuing company
- Compliance Officers: Internal teams ensuring the SAFT aligns with Dutch securities regulations and KYC requirements
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, vesting periods, and any milestone-based release conditions
- Compliance Check: Verify alignment with AFM guidelines and Dutch securities regulations
- Investor Information: Gather KYC documentation and accredited investor status verification
- Platform Selection: Use our automated platform to generate a legally-sound SAFT that includes all required elements
- Documentation: Prepare technical whitepaper and project roadmap for attachment to the agreement
What should be included in a Simple Agreement for Future Tokens?
- Token Description: Detailed specifications of future tokens, including utility and technical features
- Purchase Terms: Investment amount, token price, and delivery conditions upon platform launch
- Vesting Schedule: Clear timeline for token distribution and any lock-up periods
- Risk Disclosures: Comprehensive overview of project risks and regulatory considerations
- Governing Law: Explicit statement of Dutch law application and jurisdiction
- Investor Rights: Token holder privileges, voting rights, and transfer restrictions
- Termination Clauses: 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 used in early-stage funding. While they share similar structures, their underlying assets and regulatory frameworks in the Netherlands are quite different.
- Asset Type: SAFTs promise future blockchain tokens, while SAFEs convert to company equity shares
- Regulatory Framework: SAFTs must comply with Dutch crypto regulations and AFM guidelines, whereas SAFEs follow traditional securities laws
- Investment Timeline: SAFTs typically convert upon platform launch or token creation, while SAFEs convert during equity funding rounds
- Risk Profile: SAFTs carry additional technology and regulatory risks specific to blockchain projects, making them more specialized than standard equity instruments
- Investor Rights: SAFT holders receive utility tokens without company ownership, while SAFE holders become shareholders with voting rights
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