Utility Tokens on SAFE?


I have an idea about developing Utility Tokens for a particular BioMedical Research project for one of my non-profit organisations - I think I know how it should work in terms of people who want to support the research work buying the tokens and holding on to them for potentially some redeemable value from the research work. I think the tokens will need to be pegged to the Australian Dollar and since their purchase could be considered donations to the organisation, they wouldn’t really rise in value.

Anyway, I am wondering if the SAFE Network could provide the permanent record of the token sale and possible resale of the tokens. It seems like that would be an easy thing to do - creating permanent public, financial records - maybe a nice front end for interrogating the information would be good but otherwise the information would get stored like any other permanent SAFE information?


[…] for potentially some redeemable value from the research work

That’s not a “utility token”. That’s what’s known as a “security”.

"Utility tokens

Utility tokens are designed with a particular purpose in mind, generally within the platform or application for which the crypto token has been developed. The most popular type of utility token is as a payment option for purchases on the platform. For example, on the Sia network, Siacoin (SC) can be used to rent decentralized cloud storage.

Utility tokens are often issued by a company as an initial coin offering (ICO) to raise funds to ensure their project can reach its full potential. Just as importantly, utility tokens are released to provide users with a means to pay for new products or services."

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As far as I can tell you really are just after a basic ledger with a front end to express the ledger in the manner you wish.

As to utility token or security, that is more tricky. In the USA it’d probably end up being claimed as a security or investigated for a security by the SEC even if purely for them to have another token under their control.

But in Australia I would not know and its more than possible the ATO wouldn’t know either (yet).


I can’t speak to rules in Australia, but this interpretation is unlikely to hold weight in the US / with the SEC now. This is why there was a significant move away from ICOs to STOs.

You’d likely need to get a legal opinion that the token is a utility token.