It’s up to you. Incentive token plans can co-exist with the company ESOP program if the company finds it more efficient to keep ESOP for local employees, and use tokens for non-employees or international contributors.
The tokens mimic the economic benefits of ordinary shares in the form of a purely financial instrument: with no governance and decision-making rights. These tokens certify the participant's conditional rights to receive redemption payment facilitated by the company in the case of an exit event when existing shareholders sell all or part of their shares to third parties.
Salto X helps you give tokens to different contributor types (non-employees, contractors, freelancers) irregardless of their location. Thus, giving tokens to your community via Salto X is both legally and technically possible.
You can always create a new token pool.
Once added to the token incentive plan, the contributor receives a personal NFT certificate. The NFT consists of information on the cliff period, vesting period, and the amount of future tokens. Easily added and accessible in contributors' private crypto wallets.
Salto X platform enables companies to:
- Legally introduce company tokens. We provide country-specific legal templates to adopt and incorporate token incentive plans;
- Mint and distribute token pool with cliff and vesting properties, managed by a smart contract;
- Issue NFTs to participants as proof of token grants.
- The right to receive a future distribution from possible exit event (liquidation) of shareholders;
- The right to transfer ownership of pre-qualification NFT and tokens only if the company allows it to white-listed third parties or other participants of the token incentive plan of the company;
- No voting rights and legal ownership of the company;
- No liquidation quota;
- No right to dividends;
- The participant is not a shareholder of the company.
Issuance of a token should not be a taxable event for the company, shareholders or the participants in the EU Member States. NFT certificates hold no value and serve as a certificate indicating eligible token amount and inclusion in the Token Incentive Plan.
A registered legal entity would be enough to start.
From the company's view
(A) blockchain remains, and the company may develop a proprietary solution to interact with Polygon blockchain. Issued token incentive plans shall remain in force. Salto X would provide any supporting documents at the company's disposal.
(B) possibly other platforms would have adopted similar solutions to Salto X, and a transfer could be facilitated, subject to agreement between all parties involved.
(C) Alternatively, the company may burn all issued tokens and terminate the token incentive plan.
From the participant's view
The participants can claim the vested tokens in their wallets. Those tokens that are not claimed remain on the smart contract. The participant can claim them later through interaction with the following service provider or the Company platform if there are any. Subject to further actions of the company.
We are headquartered in Tallinn, Estonia. Our team is distributed between Estonia, Ukraine and Latvia.