A Simple Agreement for Future Tokens (SAFT) is a legal contract that allows investors to purchase tokens in a cryptocurrency project before the tokens are actually created and distributed. The SAFT is similar to a Simple Agreement for Future Equity (SAFE) which is used in traditional startup fundraising.A SAFT is typically used by a company that is planning to launch a blockchain-based platform or network and wants to raise funds to develop it. The company will typically sell the SAFT to accredited investors, who will be able to purchase the tokens at a discounted price when they are eventually issued.The SAFT is designed to comply with securities laws by representing an investment contract, rather than an actual security. By purchasing a SAFT, investors are buying the right to receive the tokens when they are issued, rather than buying the tokens themselves.The terms of the SAFT can include information about the token issuance schedule, the number of tokens to be issued, and the price at which the tokens will be sold. It can also include information about the company's plans for the platform, such as the technology that will be used, the team that will be working on the project, and the potential use cases for the tokens.It's important to note that SAFT is a relatively new concept in crypto and it's still in the early stages of development. Not all countries have clear regulations on SAFT, and it requires a high level of knowledge and expertise to understand the legal and regulatory implications of SAFT. Additionally, it's important to conduct thorough research and due diligence on the project before investing in a SAFT.
