The Simple Agreement for Future Bitcoin Payments (SAFBP) is an innovative investment instrument designed for Bitcoin-centric businesses. Unlike traditional equity-based SAFE notes, the SAFBP focuses on future Bitcoin-denominated cash flows, aligning with Bitcoin's fundamental nature as a payment system rather than an equity instrument.
Investors receive a percentage of the company's monthly revenue paid in Bitcoin. Payments continue until a predetermined return multiple is reached (e.g., 2x-3x initial investment).
All payments made in Bitcoin based on USD-equivalent revenue calculations. Includes clear methodology for converting USD revenue to Bitcoin payments.
Continues until return multiple is reached or maximum term expires. No fixed monthly payment obligations, reducing pressure during business downturns.
Uses composite Bitcoin Price Index from multiple sources with fallback price sources if primary indices become unavailable. Includes automatic adjustments for Bitcoin price volatility.
Differentiated treatment for soft forks, hard forks, and contentious forks. Clear methodology for determining fork value and investor entitlements.
Detailed custody specifications including multi-signature wallets and cold storage requirements. Includes security breach notification and remediation procedures.
Requires use of SegWit addresses for all transactions. Specifies transaction fee rates to ensure timely confirmation and includes blockchain verification mechanisms.
Monthly revenue reporting, quarterly financial statements with third-party verification, Bitcoin holdings reporting, and annual tax documentation.
Company buyout option with premium for early termination, change of control provisions, default remedies with automatic rate increases, and investor protections for missed payments.
Provisions for adapting to regulatory changes, international regulatory considerations, compliance requirements for both parties, and clear tax treatment guidelines.
Detailed Bitcoin-specific risk disclosures, business risk acknowledgments, force majeure provisions for Bitcoin network issues, and security breach protocols.
The Simple Agreement for Future Bitcoin Payments represents a significant innovation in cryptocurrency investment instruments. By focusing on Bitcoin-denominated revenue sharing rather than equity conversion, the SAFBP creates a more natural alignment with Bitcoin's fundamental nature as a payment system.
This agreement provides a balanced framework that offers companies access to growth capital without equity dilution while giving investors exposure to both business growth and Bitcoin appreciation. The comprehensive provisions addressing Bitcoin's unique characteristics—including price volatility, forks, and security requirements—make the SAFBP particularly well-suited for Bitcoin-centric businesses.
By adapting revenue-based financing principles to the Bitcoin context, the SAFBP creates a new financing option that respects Bitcoin's unique properties while providing a clear legal structure for both companies and investors.