When it comes to drafting agreements for future tokens, it`s important to keep it simple and clear. Future token agreements are contracts that outline the terms and conditions for the issuance of a token at a later time, typically after a sale or fundraiser.
To ensure the agreement is effective, it should include the following key components:
1. Token details: This section should clearly outline the type of token being issued, the total supply, and the distribution method. It`s important to be specific about these details to avoid any confusion or misunderstandings later on.
2. Sale details: If the agreement is related to a sale or fundraiser, it should include information on the dates of the sale, the price per token, and any discounts or bonuses being offered.
3. Conditions for issuance: This section should lay out the specific conditions that must be met for the token to be issued. For example, if the token is being issued as part of a fundraising campaign, the agreement might state that the campaign must reach a certain funding goal before the token can be issued.
4. Vesting provisions: If the tokens are subject to vesting, the agreement should outline the vesting schedule and any other relevant details.
5. Dispute resolution: It`s important to include a dispute resolution clause in the agreement in case any issues or disagreements arise in the future.
Here`s a sample future token agreement to help you get started:
This Agreement (“Agreement”) is entered into on [date] between [company name] (“Issuer”) and [investor name] (“Investor”).
1. Token Details
Issuer shall issue [number of tokens] of [token name] (the “Tokens”), with a total supply of [total supply] Tokens.
2. Sale Details
The Tokens will be sold to Investor at a price of [price per token]. Investor shall pay the purchase price on [payment date].
3. Conditions for Issuance
The Tokens shall be issued to Investor upon the successful completion of [specific condition], which must occur by [issuance date]. In the event that [specific condition] is not met by the issuance date, this Agreement shall be considered null and void.
4. Vesting Provisions
The Tokens issued pursuant to this Agreement shall be subject to a [vesting schedule] vesting schedule.
5. Dispute Resolution
Any disputes arising out of or relating to this Agreement shall be resolved through binding arbitration in accordance with the rules of the American Arbitration Association.
This Agreement constitutes the entire agreement between the parties and supersedes all prior negotiations, understandings, and agreements. This Agreement may not be amended or modified except in writing signed by both parties.
In conclusion, drafting a simple agreement for future tokens is crucial to ensure that both parties understand the terms and conditions of the issuance. By including the key components outlined above, you can create a clear and effective agreement that protects both the issuer and investor.