Legal Structuring of Token Issuance and Initial Distribution, and SAFT Conversion
Token Legal Opinion Preparation for Token Listing on Exchanges and Launchpads
Stage 3. Token Initial Issuance and Distribution
What’s the purpose of this task?
You will need these legal works to make your initial token issuance and distribution compliant and to avoid legal obstacles that may impact token liquidity in the future.
Why do I need to complete this task? What will it allow me to do?
This will help you to:
• Make token transfers to insiders (founders, advisors, team) in a compliant way
• Convert SAFTS
for existing investors and structure Private Token Sales with new investors
• Obtain necessary
authorizations / licenses and implement compliance procedures if a public paid token distribution is
planned
When do I need it? When is the best time to do it?
After minting tokens and when starting token distribution for the founders, team, advisors, and investors.
How should I do it? Are there any best practices?
Token transfer to insiders is usually structured in the form of Token Options (Vested Tokens). For existing investors, tokens are transferred as a result of their SAFTs conversion. For the new investors, a Private Token Sale Agreement might be used. If the public paid token distribution is planned (TGE / ICO) there might be a requirement to obtain VASP authorization and implement KYC procedures for the public token sale.
What’s important to remember for this stage?
The main criteria which should be considered by the fouders when it comes to token distribution is how the tokens will be distributed. Legal requirements for paid and unpaid token distributions will differ as will the legal requirements for public and private token distributions.
How much time does it usually take?
This depends on the country chosen for Token Company registration and if any special token authorizations / approvals are required. Usually at least 2 weeks are required to complete this task, however actual times vary depending on individual project requirements.
Prices for this task start from USD $1500
Prices for add-ons are indicative only. Final prices vary and are set by service providers from the Legal Nodes Network.
Add-ons are only available with a monthly plan from Legal Nodes.
Legal Nodes does NOT provide legal services. Instead, we provide Virtual Legal Officers to orchestrate your legal workload and manage relationships with your service providers. Plans start from $499 per month and gives you access to the Legal Nodes Network of service providers and add-ons, including this one!
