Protect token supply details, distribution schedules, vesting arrangements, and utility specifications with provisions designed for pre-launch confidentiality.
Common token economics scenarios requiring specialized protection
When discussing tokenomics with advisors, consultants, or potential partners before any public disclosure of token details.
SAFT or private sale negotiations where token economics are disclosed to potential investors before public announcement.
Pre-listing discussions with exchanges where token supply, distribution, and unlock schedules must be disclosed.
Bringing on new team members or advisors who will have access to token allocation and vesting information.
| Issue | Risk Level | Recommended Action |
|---|---|---|
| No insider trading prohibition | High | Add explicit trading restrictions for recipients of token economics information |
| Vague definition of confidential tokenomics | High | Enumerate specific categories: supply, distribution, vesting, utility, launch timing |
| Short confidentiality term | Medium | Extend to 3-5 years or until public TGE, whichever is later |
| No regulatory cooperation carve-out | Medium | Add carve-outs for SEC, CFTC, FinCEN, and state regulators |
| Missing anti-tipping provisions | Low | Prohibit sharing token economics with third parties who may trade |
Token economics discussions may involve information that constitutes material non-public information under securities laws. Depending on the token's classification, disclosure and trading on this information may violate federal and state securities laws. This template provides a starting point but should be reviewed by securities counsel before use in any situation involving potential securities tokens or investment contracts.