The investors in this round will be given those tokens in the future in lieu of company equity in what is known as a simple agreement for future tokens, or a SAFT—a common type of arrangement in the crypto space.
Quote
Sources
Exclusive: Bitcoin infrastructure company Arch Labs raises $13 million from Pantera Capital to launch Arch Virtual Machine
Referenced by
Matt Mudano, CEO of Arch Labs, said that the ArchVM network will launch a transaction‑fee token and that investors will receive tokens under a Simple Agreement for Future Tokens (SAFT), a common crypto funding model, instead of company equity
Crypto news
Claim
