Simple Agreement for Future Tokens (SAFT)

A Simple Agreement for Future Tokens (SAFT) is an investment contract offered by some blockchain-based projects to investors guaranteeing the future distribution of yet-to-be-created tokens. Due to their classification as an investment contract, SAFTs can only be offered to accredited investors in private placements and are often used as vehicles for institutional investment in blockchain-based projects. SAFTs are modeled after Simple Agreements for Future Equity, a form of investment contract pioneered by Y Combinator in the early 2010s.