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Token Sale Agreement
I need a token sale agreement for a blockchain-based project, outlining the terms and conditions for participants purchasing tokens during the initial sale phase. The document should include details on token allocation, use of proceeds, participant eligibility, and compliance with Qatar's regulatory framework.
What is a Token Sale Agreement?
A Token Sale Agreement sets out the terms when buying and selling digital tokens or cryptocurrencies in Qatar's emerging digital asset market. It specifies how many tokens the buyer gets, what price they'll pay, and when the transfer happens - all while following Qatar Financial Centre rules and the country's virtual asset regulations.
These agreements protect both sides by clearly stating key details like token rights, lockup periods, and refund conditions. For Qatari businesses launching tokens, this document helps meet compliance requirements under local securities laws while giving investors the confidence of a properly structured deal backed by legal protections.
When should you use a Token Sale Agreement?
Use a Token Sale Agreement when launching any token offering or cryptocurrency sale in Qatar, especially if you're raising capital through digital assets. This document becomes essential once you've decided to sell tokens and need to formalize the terms with potential buyers under Qatar Financial Centre regulations.
The agreement proves particularly valuable during pre-sale phases, initial coin offerings (ICOs), or when structuring token distribution to early investors. For Qatari startups and established companies alike, having this agreement in place helps avoid regulatory issues, protects both parties' interests, and creates a clear framework for token transfers and investor rights.
What are the different types of Token Sale Agreement?
- Simple Token Sale Agreement: Basic version for straightforward token sales, covering essential terms like price, quantity, and delivery
- SAFT-Based Agreement: Follows the Simple Agreement for Future Tokens framework, popular among Qatari tech startups for pre-launch token sales
- Security Token Agreement: Enhanced version with detailed investor rights and compliance measures for tokens classified as securities under QFC regulations
- Utility Token Agreement: Focuses on functional access rights and platform usage terms, common in Qatar's emerging digital service sector
- Institutional Grade Agreement: Comprehensive version with advanced investor protections and regulatory compliance features for large-scale token offerings
Who should typically use a Token Sale Agreement?
- Token Issuers: Tech companies, startups, or established businesses in Qatar launching digital tokens or cryptocurrencies through the QFC
- Investors: Individual and institutional buyers purchasing tokens, including Qatari citizens, residents, and foreign investors following local regulations
- Legal Counsel: Specialized blockchain attorneys who draft and review Token Sale Agreements to ensure compliance with QFC rules
- Financial Advisors: Help structure token offerings and ensure proper valuation and terms
- Regulatory Bodies: Qatar Financial Centre Regulatory Authority and Qatar Central Bank who oversee token sales and enforce compliance
How do you write a Token Sale Agreement?
- Token Details: Document the token type, total supply, distribution schedule, and pricing structure under QFC guidelines
- Compliance Check: Verify token classification (security/utility) and obtain necessary regulatory approvals from Qatar Financial Centre
- Investor Information: Gather KYC documentation, investment limits, and eligibility criteria for both local and foreign participants
- Sale Terms: Define payment methods, lockup periods, vesting schedules, and token delivery mechanisms
- Platform Integration: Our system generates a customized Token Sale Agreement incorporating all these elements while ensuring QFC compliance
What should be included in a Token Sale Agreement?
- Token Specifications: Detailed description of the digital asset, including type, functionality, and total supply under QFC guidelines
- Purchase Terms: Price, payment methods, minimum investment, and token allocation schedule
- Rights and Restrictions: Token holder privileges, transfer limitations, and usage conditions
- Compliance Statements: QFC regulatory declarations, AML/KYC requirements, and investor eligibility criteria
- Risk Disclosures: Market volatility warnings, technical risks, and regulatory uncertainty acknowledgments
- Dispute Resolution: Qatar law as governing jurisdiction, arbitration procedures, and enforcement mechanisms
What's the difference between a Token Sale Agreement and a Simple Agreement for Future Tokens?
A Token Sale Agreement differs significantly from a Simple Agreement for Future Tokens (SAFT) in Qatar's digital asset landscape. While both documents relate to token transactions, they serve distinct purposes and apply in different scenarios.
- Timing and Delivery: Token Sale Agreements handle immediate token transfers, while Simple Agreement for Future Tokens covers future token delivery once the platform launches
- Risk Profile: SAFTs carry higher risk as they deal with pre-development tokens, while Token Sale Agreements cover existing, tradeable tokens
- Regulatory Framework: Token Sale Agreements must comply with current QFC digital asset regulations, whereas SAFTs often fall under investment contract rules
- Investment Structure: Token Sale Agreements provide immediate ownership rights, while SAFTs offer conversion rights to future tokens
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