SAFT NFT Discussion

General
#1

There has been discussion around using SAFT NFTs as a way to receive investments to the DAO/a way for the DAO to invest in future projects. SAFT are a good way to do this as they ensure that investments and payment agreements are met. It might be helpful to lay out what SAFT NFTs are:

SAFT NFTs (Simple Agreement for Future Token) are a type of investment contract that allows investors to purchase a right to receive tokens at a later date, typically when a project or platform launches. The SAFT model is commonly used in the cryptocurrency and blockchain space as a way to fundraise for new projects.

SAFTs are similar to initial coin offerings (ICOs), but with some key differences. Instead of purchasing tokens immediately, investors in a SAFT purchase the right to receive tokens at a future date when they are created and become available. This can help protect investors from the risk of investing in a project that ultimately fails or does not deliver on its promises.

NFTs, on the other hand, are unique digital assets that are not interchangeable with other tokens or assets. They can represent ownership of a unique piece of content such as artwork, music, or even virtual real estate.

As a group, we should come to some consensus on the process for creating and issuing SAFT NFTs for our specific use cases. There are also many legal questions that need to be answered around these NFTs and there are better members in the DAO to answer those questions.

1 Like
#2

Here is an example of content for SAFT.

This is a previously discussed idea:

SAFT NFT (Simple Agreement for Future Tokens NFT)

Parameters

Example:

  • Token type: < ETH >
  • Token price: < $1000 >
  • Amount of tokens: < X >
  • SAFT trigger event: < date or other variable >

Token type - the name of the token for the projects LunarDAO invests in.
Token price - the price of token in the agreement with LunarDAO (these agreements generally includes a discounted price)
Amount of token - this depend on the value of the investment to the privacy project and the price of the token.
SAFT trigger event - when the tokens will be transferred. If there is no set date, maybe it is possible to connect this to another variable.

Sources:

@0xQ are these parameters possible to include in SAFT NFT? is it possible to include a trigger event variable? What parameters would you propose to include in the SAFT NFT?

#3

I think the best example of what should the SAFT NFTs contain:

LunarDAO Support

Project X offers to bring a ticket of # of T tokens or any other value to the ecosystem in exchange for LunarDAO support. The project is evaluated by the research team and proposed to submit an invetment LIP in which it must be clearly defined:

  • Value for to the ecosystem (knowledge, tools etc)
  • Requested size of support in USD terms
  • Offered amount of X tokens (if the project is monetary based)
  • Time period needed for execution or expected time of launch (when T becomes liquid)
  • Is the team X supported by private investors or VCs, other DAOs (or plans to) or just LunarDAO?
  • If yes: In which size and what is the price of token T to other supporting subjects?
  • If project X is token based: T tokenomics
  • Wallet address to recieve the support
#4

Good start. @0xQ Can you sum up the legal questions?

As far as I am concerned the folks from the DAO did not plan to start a legal structure but keep it crypto only.

#5

There are lawyers helping us out. Can pass on the questions.

#6

Actually there was another channel. I will delete it now. This was there:

One of the main three primitives to develop is the on-chain agreement template.

From the tokenomics forum

A primitive to create an on-chain SAFT, which ensures both counterparties: LunarDAO Squad (the investing community) and the supported project, following the contract without state legal structures involved. Such research needs a collaboration between LunarDAO allies, researchers, web3 devs and lawyers.

A proposal is to create a primitive of a template SAFT in the form of an NFT. Such contract would contain all the points mentioned in the investment & raise, in particular *:

Project X offers to bring a ticket of # of T tokens or any other value to the ecosystem in exchange for LunarDAO support. The project is evaluated by the research team and proposed to submit an investment LIP in which it must be clearly defined:

  • Name of the project
  • Date
  • Value for to the ecosystem (new primitives, tools, knowledge, monetary etc)
  • Requested size of support in USD terms
  • Offered amount of Project X tokens T and price per USD (if the project is monetary based)
  • Trigger event - Tokens T will be send to LunarDAO treasury: Time period needed for execution or expected time of launch (when T becomes liquid)
  • Is the team X supported by private investors or VCs, other DAOs (or plans to) or just LunarDAO?
  • If yes: In which size and what is the price of token T to other supporting subjects?
  • If project X is token based: T tokenomics
  • Project X wallet address to recieve the support
  • LunarDAO treasury wallet address to recieve token T in agreed time, amount and price

* These points are illustrative and can change as the tokenomics are under construction.

This primitive needs to have a tool to enforce the contracts to help build a robust incentive system and ensure the DAO receives the promised tokens to its treasury.



The Steps

a) Research committee leads the research for existing protocols (@0xQ, @saliveja, @serinko)

b) Encourage the community to join or give input about the existing protocols which can be used

  • Make an announcement to encourage others to participate

c) Communicate with the lawyers about the legal issues of the SAFT

d) Implement programming knowledge to draft the SAFT NFT contract

e) Propose the final version

  • Use LIP template
  • If #1 is finished: Use the DAO to vote and

f) Deploy the SAFT template

#7

Isn’t it against market principles to self-value a token prior to its release to the market?

#8

hey @QC1 and welcome. Good to have you here! :clap:

How would you evaluate token based projects when investing into the team development? We see privacy vital and we are bullish due to the pressure of regulations on crypto. The DAO is meant to leverage squad wealth and replace traditional VC dynamic. For several reasons:

  • The projects which are sincere may not be able to get any other investment due to the control imposed on investors. Without resources, they would not be able to build them.

  • People who will take part of the DAO would never be able to be investors on their own, putting resources together in an anon DAO fashion, they together become an investor and capture the value which often gets extracted. The projects sell the seed/pre-sale tokens to the lunarpunk community.

It’s a win win situation for both counter-parties. It’s about creating value, self-defense mechanisms and build stronger ecosystem by empowering people involved.