Create a bespoke document in minutes, or upload and review your own.
Get your first 2 documents free
Your data doesn't train Genie's AI
You keep IP ownership of your information
Simple Agreement for Future Tokens
I need a Simple Agreement for Future Tokens for an early-stage blockchain project, where investors provide funding in exchange for the right to receive tokens in the future once the platform is operational. The agreement should include a clear token allocation schedule, investor rights, and compliance with Singapore's regulatory framework.
What is a Simple Agreement for Future Tokens?
A Simple Agreement for Future Tokens (SAFT) is a legal contract between crypto project developers and early investors in Singapore. It promises investors future tokens once the blockchain network or platform launches, helping startups raise funds while navigating MAS regulations on digital payment tokens.
Think of it as a forward contract specifically designed for crypto projects - investors provide capital now, and developers commit to delivering tokens later when the network goes live. This approach helps protect both parties under Singapore's Payment Services Act and securities laws, while giving projects the flexibility to develop their platforms before token distribution.
When should you use a Simple Agreement for Future Tokens?
Use a Simple Agreement for Future Tokens when launching a blockchain project that needs early-stage funding but doesn't have a functioning token system yet. This agreement works perfectly for Singapore-based startups developing decentralized platforms, especially when seeking sophisticated investors familiar with crypto markets.
The SAFT structure makes particular sense when your project requires significant development time before token launch, and you need to comply with MAS guidelines on digital payment tokens. It helps protect both developers and investors during the critical pre-launch phase, while maintaining clear documentation for regulatory compliance and future token distribution.
What are the different types of Simple Agreement for Future Tokens?
- Basic Token Rights SAFT: Offers straightforward token delivery terms with standard price and timeline provisions
- Tiered Investment SAFT: Includes multiple investment thresholds with corresponding bonus token allocations
- Vesting Schedule SAFT: Structures gradual token release over time, aligned with MAS compliance requirements
- Project Milestone SAFT: Links token distribution to specific development achievements or platform launch phases
- Institutional SAFT: Enhanced governance and reporting provisions for large-scale Singapore-based investors
Who should typically use a Simple Agreement for Future Tokens?
- Blockchain Project Teams: Developers and founders who need early funding before launching their token or platform
- Accredited Investors: High-net-worth individuals and institutions providing capital under MAS guidelines
- Corporate Lawyers: Draft and customize SAFTs to ensure compliance with Singapore's securities and payment services laws
- Compliance Officers: Monitor token distribution plans and ensure adherence to regulatory requirements
- Investment Advisors: Guide clients on SAFT terms and evaluate blockchain project potential
How do you write a Simple Agreement for Future Tokens?
- Project Details: Document your token's functionality, distribution mechanics, and development timeline
- Investor Verification: Confirm accredited investor status under MAS guidelines and collect KYC information
- Token Economics: Define token price, allocation percentages, and vesting schedules if applicable
- Technical Specs: Outline blockchain platform choice, smart contract details, and token standard
- Compliance Check: Review against Payment Services Act requirements and securities regulations
- Documentation: Generate your SAFT through our platform to ensure all required elements are included correctly
What should be included in a Simple Agreement for Future Tokens?
- Token Rights: Clear terms on future token delivery, quantity, and conversion mechanisms
- Investment Terms: Purchase amount, price per token, and payment methods accepted
- Project Milestones: Specific development targets and corresponding token distribution triggers
- Regulatory Compliance: MAS-aligned investor qualifications and token classification statements
- Risk Disclosures: Project risks, regulatory uncertainties, and market volatility warnings
- Distribution Rules: Vesting schedules, lock-up periods, and transfer restrictions
- Governing Law: Singapore jurisdiction and dispute resolution procedures
What's the difference between a Simple Agreement for Future Tokens and a Simple Agreement for Future Equity?
The Simple Agreement for Future Tokens (SAFT) is often confused with a Simple Agreement for Future Equity (SAFE), but they serve distinctly different purposes in Singapore's startup ecosystem.
- Asset Type: SAFTs promise future cryptocurrency tokens, while SAFEs offer future equity shares in the company
- Regulatory Framework: SAFTs fall under MAS digital payment token regulations, while SAFEs are governed by traditional securities laws
- Conversion Trigger: SAFTs convert upon network launch or token creation; SAFEs convert during equity financing rounds
- Investment Focus: SAFTs suit blockchain projects and crypto ventures, while SAFEs target traditional tech startups
- Risk Profile: SAFTs carry additional regulatory uncertainty and crypto market risks compared to SAFEs' more established equity-based structure
Download our whitepaper on the future of AI in Legal
ұԾ’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; ұԾ’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
Our bank-grade security infrastructure undergoes regular external audits
We are ISO27001 certified, so your data is secure
Organizational security
You retain IP ownership of your documents
You have full control over your data and who gets to see it
Innovation in privacy:
Genie partnered with the Computational Privacy Department at Imperial College London
Together, we ran a £1 million research project on privacy and anonymity in legal contracts
Want to know more?
Visit our for more details and real-time security updates.
Read our Privacy Policy.