---
title: "What Is SAFT?"
term: "SAFT"
description: "A SAFT (simple agreement for future tokens) is a contract where investors pay now for the right to receive digital tokens later — typically when a blockchain network launches — used in some crypto fundraises."
date: 2026-07-25T00:00:00.000Z
updated: 2026-07-25T00:00:00.000Z
topics: ["venture-capital"]
source: https://venturecapitaltracker.com/glossary/saft
---

# What Is SAFT?

> A SAFT (simple agreement for future tokens) is a contract where investors pay now for the right to receive digital tokens later — typically when a blockchain network launches — used in some crypto fundraises.

**SAFT** (simple agreement for future tokens) is an investment contract granting tokens at a future network launch in exchange for capital today — modeled after the SAFE but for tokenized projects.

### How it works

Investors wire funds to a project entity; upon **mainnet launch** or defined trigger, they receive a quantity of tokens per SAFT terms — often with **lockups** and vesting for team and investors alike.

SAFTs emerged in ICO-era crypto fundraising as a way to separate **protocol development funding** from public token distribution. Legal theory treated some SAFTs as securities offerings to accredited investors; public token sales were envisioned separately.

Terms mirror SAFE concepts: discounts, caps (on token price or allocation), and MFN clauses. Delivery depends on technical launch — delays create investor relations and litigation exposure.

Regulatory landscape shifted post-2020 enforcement; many U.S. teams now raise equity ([SAFE](/glossary/safe)) with token warrants or stay offshore with counsel — SAFTs are not a generic substitute for compliant planning.

### Why it matters

- **Founders:** Securities law and token classification dominate structure — template docs without counsel are dangerous.
- **Investors:** Token illiquidity, lockups, and network failure risk differ from equity VC outcomes; diligence focuses on launch credibility and legal opinions.

### Common mistake

Assuming SAFT fundraising avoids securities regulation because tokens are "utility" at launch. Regulators evaluate the full scheme, not labels at sale time.

### Related ideas

See also [SAFE](/glossary/safe), [equity token warrant](/glossary/equity-token-warrant), [KYC](/glossary/kyc), and [liquidity event](/glossary/liquidity-event).

## FAQ

### What is a SAFT in simple terms?

A SAFT is like a SAFE but for tokens instead of company stock. Investors fund development today and receive network tokens when the project launches, under terms set in the agreement.

### Why does SAFT matter?

For crypto founders, SAFTs were a common fundraising template before regulatory scrutiny intensified. For investors, token delivery timing, lockups, and securities law compliance dominate risk — SAFTs are not interchangeable with standard VC equity.


---
Source: https://venturecapitaltracker.com/glossary/saft