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A Simple Agreement for Future Tokens (SAFT) is a funding contract that crypto startups use to raise capital while staying within Austrian securities laws. It lets investors contribute money now in exchange for tokens that will be delivered once the blockchain network launches. Think of it like a pre-order agreement for digital assets that don't exist yet.

Under Austrian financial regulations, SAFTs help companies navigate the complex rules around token offerings. The agreement specifically outlines key details like token delivery conditions, investor rights, and compliance requirements. This structure protects both parties - investors get legal clarity about their future tokens, while projects can fundraise without immediately issuing cryptocurrencies.

Use a Simple Agreement for Future Tokens when your blockchain project needs early-stage funding but your tokens aren't ready for distribution yet. This agreement works perfectly for Austrian startups developing new blockchain platforms, especially when you need to raise capital months before your actual token launch.

The SAFT structure makes sense when you want to comply with Austrian securities regulations while giving investors a legal claim to future tokens. It's particularly valuable for projects that need significant development time before launching their blockchain network, or when dealing with sophisticated investors who understand the risks of pre-launch investments.

• Basic Token Rights SAFT: Outlines standard token distribution terms and investor rights, commonly used by Austrian blockchain startups during seed funding rounds
• Milestone-Based SAFT: Links token distribution to specific project achievements, protecting both investor interests and development timelines
• Multi-Round SAFT: Structures token allocations across different investment phases, often used for larger blockchain projects with staged development
• Regulatory-Focused SAFT: Incorporates additional compliance provisions specific to Austrian financial regulations and EU crypto laws
• Industry-Specific SAFT: Customized for particular sectors like DeFi or NFT platforms, with relevant technical specifications and use-case parameters

• Blockchain Startups: The primary issuers of Simple Agreement for Future Tokens, using them to secure early-stage funding while developing their platforms
• Venture Capital Firms: Professional investors who understand the risks and regulatory framework of token-based investments in Austria
• Legal Counsel: Attorneys specializing in blockchain and securities law who draft and review SAFTs for compliance
• Financial Regulators: Austrian authorities who oversee token offerings and ensure compliance with securities laws
• Technical Developers: Team members responsible for delivering the blockchain platform specified in the SAFT terms

• Project Details: Document your blockchain platform's technical specifications, development timeline, and token distribution mechanics
• Investor Information: Gather complete details about participating investors and their qualification under Austrian securities laws
• Token Economics: Define precise token pricing, allocation formulas, and vesting schedules
• Legal Framework: Review current Austrian crypto regulations and EU compliance requirements
• Risk Disclosures: List potential project risks, market uncertainties, and regulatory challenges
• Technical Milestones: Outline specific development benchmarks that trigger token distribution

• Party Details: Full legal names, addresses, and registration numbers of the token issuer and investors
• Token Specifications: Detailed description of future tokens, including rights, features, and technical parameters
• Purchase Terms: Investment amount, token price calculation, and delivery conditions
• Distribution Mechanics: Clear timeline and conditions for token delivery upon network launch
• Risk Disclosures: Comprehensive statement of investment risks under Austrian securities laws
• Termination Rights: Specific conditions for contract termination and fund return procedures
• Governing Law: Explicit reference to Austrian jurisdiction and applicable EU regulations

A Simple Agreement for Future Tokens (SAFT) and a Simple Agreement for Future Equity (SAFE) serve similar funding purposes but differ significantly in their execution and underlying assets.

• Asset Type: SAFTs promise future cryptocurrency tokens, while SAFEs offer future company equity shares
• Regulatory Framework: SAFTs must comply with both Austrian securities laws and specific crypto regulations; SAFEs only deal with traditional corporate securities rules
• Triggering Events: SAFTs convert upon network launch and token creation; SAFEs convert during equity financing rounds
• Investment Focus: SAFTs target blockchain project development; SAFEs support general startup growth
• Risk Profile: SAFTs carry additional technical and regulatory risks related to token development and crypto market volatility