Token Description
Define token name, symbol, type (utility/security), total and circulating supply, decimals, and technical standard (ERC-20, ERC-721, etc.).
A clear Token Sale Agreement reduces legal and commercial uncertainty, documents investor rights and obligations, and creates an auditable record for compliance, tax, and auditing purposes. It helps manage allocation, prevents disputes over token distribution, and supports regulatory disclosures or filings when required.
Token Sale Agreements are used across issuer teams, investor groups, and professional advisors; multiple stakeholders rely on the document for governance and compliance.
The agreement should be accessible to technical, finance, and legal reviewers and retained with corporate records and investor communications.
The issuer’s authorized officer (CEO or CFO) usually signs to bind the issuing entity, confirming representations, token delivery method, and acceptance of funds on behalf of the company; counsel often assists with execution and disclosures.
Individual or institutional purchasers sign to accept purchase terms, affirm eligibility (if required), complete KYC/AML checks, and agree to transfer restrictions; signatures create attribution and support tax reporting.
Define token name, symbol, type (utility/security), total and circulating supply, decimals, and technical standard (ERC-20, ERC-721, etc.).
State price per token, minimum/maximum purchase, payment currency, accepted payment channels, and escrow instructions if applicable.
Describe issuance method, expected delivery timeframe, wallet address rules, and mechanism for failed or delayed distribution.
Include resale limitations, lockups, investor transfer approvals, and secondary market restrictions to address regulatory or contractual limits.
Specify required identity checks, sanctions screening, data retention, and how noncompliance affects subscription validity.
Standard investor and issuer reps covering authority, tax status, understanding of risks, and compliance with applicable laws.
| Field | Configuration |
|---|---|
| Signer Roles | Issuer | Investor | Escrow Agent |
| Authentication | Email link | SMS OTP | KBA optional |
| Conditional Fields | Show KYC block if 'Investor' selected |
| Completion Deliverables | Signed PDF | Audit trail | Export JSON |
Use eSignature and storage formats that preserve audit trails, timestamps, and tamper evidence for legal admissibility.
1–3 weeks for initial commercial and legal drafting
1–2 weeks for securities and tax counsel review
24–72 hours per investor for verification
Same day to 14 days depending on issuance mechanism
File as required after first sale; timing depends on offering exemptions
An issuer offers utility tokens to early backers at a fixed price to fund development
A company structures a token sale under a securities exemption for accredited investors
| Criteria | Token Sale Agreement | SAFT |
|---|---|---|
| Use Case | immediate sale | future token delivery |
| Investor Type | general or accredited | typically accredited |
| Delivery Timing | at sale or specified date | after network launch |
| Regulatory Focus | commercial terms | securities characterization |
| signNow | DocuSign | Adobe Sign | PandaDoc | HelloSign | |
|---|---|---|---|---|---|
| Starting Price | $8/user/mo | $15/user/mo | $14/user/mo | $19/user/mo | $15/user/mo |
| Free Plan | 7-day free trial | Free trial available | Free trial available | Free trial available | Free trial available |
| Bulk Send | Yes | Yes | Yes | Yes | No |
| Audit Trail | Yes | Yes | Yes | Yes | Yes |
| HIPAA Compliant | Yes | Yes | Yes | No | No |