What Is a Simple Agreement for Future Token (SAFT)?
A Simple Agreement for Future Token (SAFT) is a legal document that outlines the terms of an investment in a cryptocurrency token. It is typically used to raise funds from accredited investors prior to launching a blockchain-based project or issuing tokens. The SAFT agreement defines the rights and obligations of both parties, including how much money will be raised, when it will be paid out, what type of tokens are being issued, and any other relevant information about the project.
The purpose of using a SAFT agreement is to ensure that all parties involved understand their roles and responsibilities before investing in the project. This helps protect investors by providing them with clear expectations regarding their investments as well as protecting developers from potential lawsuits if something goes wrong during development or launch. Additionally, having this legally binding document can help attract more serious investors who may not otherwise invest without such protection.