As a
web3 startup in Australia, navigating the fundraising landscape
can be complex. Deciding between Simple Agreements for Future
Tokens (or "SAFTs") and Token Warrants is a crucial step
in your capital raising journey. Both instruments offer options for
securing funds before your token is fully developed or launched,
but they come with distinct advantages and considerations. This
article will unpack the key differences between SAFTs and Token
Warrants to help you determine which approach best suits your
needs.
Understanding SAFTs and Token Warrants
Imagine a SAFT as a pre-order for your future token. Investors
essentially commit funds upfront in exchange for a guaranteed
allocation of tokens once certain milestones are met, typically
tied to the token's development and launch. This provides
crucial capital to build your project while allowing early
believers to participate in your vision.
