Token Launches Made Simple: Toku x Safe Integration

May 8, 2024

Token Launches Made Simple: Toku x Safe Integration

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For projects considering a token launch, maximizing upside and optimizing tax implications for founders and early team members is crucial. However, navigating the complexities of tax obligations and elections like the 83(b) election in the US or the section 431 election in the UK can be daunting and very costly if mishandled. 

Enter Toku's collaboration with Safe

Toku, a token grant administration and token cap table management partner to leading projects in the industry, now offers Safe-enabled features tailored for projects undergoing founders' rounds or token launch. 

Through Safe's infrastructure, Toku generates individual wallets for each recipient's token grants, meeting the transfer of property requirements across various jurisdictions. Even with legal rights transferred to the employee, Toku and Safe setup ensures that tokens remain locked until vesting and transfer restrictions end. What’s more, even while tokens are locked and unvested, recipients can vote and stake, ensuring their property rights are fully realized from the outset.

Toku manages thousands of Safes for employees and founders, overseeing vesting, lockup, automating transactions, and facilitating election filings across jurisdictions. "Our Safe integration tackles the historically cumbersome token grant process with elegance and tax efficiency," said Dominika Stobiecka, Toku’s co-founder. "Leading law firms support and sign off on our approach, and we're seeing immediate adoption as projects optimize token launch for tax." 

Moreover, Toku's integration with Safe provides a cost-effective alternative to traditional custody solutions, making it accessible to projects of all sizes. With expert support from Toku, founders and early team members can achieve the most tax-efficient outcomes.

To further support early stage projects, Toku now offers complimentary initial token valuations in partnership with valuation agent partners. For more information, reach out to us.