SAFT

Definition

Simple Agreement for Future Tokens—a legal instrument for investing in future cryptocurrency tokens, for when you want equity but make it crypto.

Example Usage

We're raising our token sale using SAFTs because apparently traditional equity is so 2020.

Origin

Created by Y Combinator in 2017 as a simpler token investment framework

Fun Fact

SAFTs have created numerous legal and tax complications for startups

Source: Cryptocurrency and blockchain terminology

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