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Simple Agreement for Future Tokens
I need a Simple Agreement for Future Tokens (SAFT) for a blockchain startup, outlining the terms for investors to receive tokens in the future once the network is operational. The document should include investment amount, token allocation, and compliance with local regulations, with a focus on protecting investor rights and ensuring transparency.
What is a Simple Agreement for Future Tokens?
A Simple Agreement for Future Tokens (SAFT) lets investors fund blockchain projects in Qatar before the tokens are ready, similar to buying a gift card for a store that hasn't opened yet. It's a legal contract that converts investment money into future cryptocurrency tokens once the blockchain network launches, following Qatar's Financial Centre Regulatory Authority guidelines.
SAFTs help Qatari tech startups raise capital while staying compliant with local securities laws. The agreement protects both parties - investors get guaranteed tokens at a better price, while developers secure funding without immediately releasing crypto assets. This structure has become popular in Qatar's growing digital economy, especially for fintech projects seeking early-stage investment.
When should you use a Simple Agreement for Future Tokens?
Use a Simple Agreement for Future Tokens when launching a blockchain project in Qatar that needs early funding but isn't ready to issue actual tokens. This agreement works perfectly for tech startups developing new platforms, especially when seeking investment from qualified investors under Qatar Financial Centre regulations.
The timing matters most during your project's development phase, before your blockchain network goes live. By using a SAFT, you can secure necessary funding while building your platform, maintain legal compliance with Qatari securities laws, and give investors a clear path to future token ownership. This approach helps avoid regulatory issues that often arise from direct token pre-sales.
What are the different types of Simple Agreement for Future Tokens?
- Standard Version: The basic Simple Agreement for Future Tokens in Qatar typically includes token pricing, distribution schedules, and investor qualifications under QFC rules
- Milestone-Based SAFT: Links token distribution to specific project achievements, protecting investors through development checkpoints
- Institutional SAFT: Enhanced compliance features for Qatar's institutional investors, with additional reporting requirements and governance controls
- Hybrid SAFT: Combines token rights with traditional equity elements, popular among Qatari fintech startups seeking mixed funding structures
Who should typically use a Simple Agreement for Future Tokens?
- Blockchain Startups: Tech companies in Qatar developing new platforms use Simple Agreement for Future Tokens to secure early-stage funding
- Qualified Investors: High-net-worth individuals and institutions regulated by the QFC who provide funding in exchange for future token rights
- Legal Counsel: Specialized fintech lawyers who draft and review SAFTs to ensure compliance with Qatari securities laws
- Project Developers: Technical teams responsible for meeting development milestones tied to token distribution
- QFC Regulators: Officials who oversee SAFT compliance and enforce investor protection requirements
How do you write a Simple Agreement for Future Tokens?
- Project Details: Document your blockchain platform's technical specifications, development timeline, and token economics model
- Investor Verification: Gather QFC-compliant investor accreditation proof and KYC documentation
- Token Terms: Define precise token pricing, distribution schedule, and vesting periods
- Legal Framework: Confirm compliance with Qatar's securities laws and QFC regulations for token offerings
- Risk Disclosure: Prepare comprehensive project risk factors and investment disclaimers
- Platform Tools: Use our automated system to generate a legally sound SAFT that includes all required elements under Qatari law
What should be included in a Simple Agreement for Future Tokens?
- Party Details: Full legal names, addresses, and QFC registration numbers of token issuer and investors
- Token Specifications: Detailed description of future tokens, including rights, functions, and technical parameters
- Purchase Terms: Investment amount, token price, and conversion mechanisms following Qatari currency regulations
- Distribution Conditions: Clear timeline and requirements for token delivery under QFC guidelines
- Risk Disclosures: Mandatory investment warnings and acknowledgments required by Qatar securities laws
- Governing Law: Explicit reference to Qatar Financial Centre jurisdiction and applicable regulations
- 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) in several key ways, though both are used for early-stage funding in Qatar. While SAFTs promise future cryptocurrency tokens, SAFEs offer future equity shares in the company.
- Regulatory Framework: SAFTs fall under Qatar's cryptocurrency and digital asset regulations, while SAFEs are governed by traditional corporate investment laws
- Asset Type: SAFTs convert to utility tokens usable on a blockchain platform, whereas SAFEs convert to company shares
- Investment Focus: SAFTs are specifically designed for blockchain projects, while SAFEs suit any tech startup seeking traditional equity funding
- Conversion Triggers: SAFTs typically convert upon network launch or token generation, but SAFEs convert during equity funding rounds
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