Currently, the SAFT (Simple Agreement for Future Tokens) is the instrument widely used by blockchain companies to pre-sell tokens. Republic Crypto aims to change that with the Token DPA. Although the SAFT dominates as a token presale agreement with accredited investors, Republic believes that this instrument is not optimal for less sophisticated retail investors––specifically when the SAFT includes no maturity date or a provision to claim company assets if a project fails. The use of the derivative SAFTE (Simple Agreement for Future Tokens & Equity) which provides the prospect of future equity may not provide adequate protection if the project fails as equity holders are generally below debt holders in the event of a liquidation.

Our team realized: Who wants an IOU when we have existing established regimes for lending money to projects and leaving deposits on future purchases?