Juan Benet and Jesse Clayburgh of Protocol Labs, and Ryan Zurrer of Polychain Capital, focus on the Simple Agreement for Future Tokens (SAFT). Inspired by Y Combinator?’?s ?’?œSimple Agreement for Future Equity?’, the SAFT standardizes the authorized framework surrounding token issuance and governs the character of the transactions concerned (i.e. the deployment of capital and distribution of tokens).
The complicated authorized atmosphere surrounding tokens, particularly within the US, has led many entrepreneurs to decide on to depart Silicon Valley as a result of they’ll develop the expertise higher elsewhere. Those who stay within the US have needed to compromise on the optimization of their fashions with the intention to adjust to legacy regulatory frameworks. Recognising these limitations, and searching for to mature the ecosystem past such fashions, a number of events (together with Protocol Labs, AngelList and CoinCenter) have labored collectively to create customary authorized agreements for this novel asset class.
Essentially, a SAFT represents a promise for future tokens at a set worth. The settlement might be structured in order that buyers obtain these tokens when the community launches, or with inbuilt vesting to incentivise continued assist by buyers.
The growth of the SAFT mannequin concerned consultations with the SEC and CFTC, in addition to the foremost authorized consultants on the intersection of cryptocurrencies, securities regulation and regulatory compliance. By simplifying token issuance and the requisite compliance considerations, it supplies a vital bridging of the hole between present technological progress and future regulation.