I want to offer a future token sale offer to an investor
Conditional agreements allow you to create future token sales structured specifically for VC's. These agreements allow you to generate USDC investment today, while also allowing investors discounted future rates at any market cap valuation you define, with success locks to prevent premature sales before price milestones are met and flexibility to exercise on the VC side when they are.
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Example: SwapSafe raises $1m USDC at a $30m (future) market cap.
For paying us $1,000,000 USDC today, you will have the right purchase 5m SWAP (10% total supply) for an additional $2,000,000 USDC anytime before Dec 31st, 2023. Additionally, you have the right to resell this agreement.
In this example, the fictitious company, SwapSafe , wants to participate in a VC led round where tokens in the future are sold at what is a presumed a discounted future rate.
When they sell this agreement, a VC is able to purchase it for $1m USDC. The team gets that capital instantly. In return, the VC owns the right to purchase 5m SWAP anytime in the next 3 years at a price of $0.20 per token (bringing the total cost for the VC to 3c per token and $3m for a total investment). note: this assumes the actual token price is $0.30 for the 30m market cap - hence a discount purchase by the VC.
For the team, this means upfront capital for their immediate runway + a conditional $2m injection from the VC if the project is successful.
For the VC, it's a way to invest in early stage products while also securing favorable positions for futures rounds, and not having to commit the entire $3m up front for a risky project.
To make this happen, we take traditional financial options and apply them to specific DeFi use cases. In this case, we use selling Call Options. Make your own below.
Last modified 2mo ago
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