Do tokens remove stock options?

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.

What do tokens represent?

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.

Can the community get tokens?

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.

What if I run out of the tokens?

You can always create a new token pool.

Does Salto X give NFTs?

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.

How do you set up token incentive plans with Salto X?

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.

What rights do token holders have?

- 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.

Does company become tax liable when issuing tokens?

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.

What do I need to do to onboard on the Salto X platform and to set up an incentive token plan for my company?

A registered legal entity would be enough to start.

What happens if Salto X disappears?

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.

Where can I access Salto X smart contract?

See the smart contracts on the Polygonscan:
· token distribution smart contract: 0xa42655289bFF20E8A78a46383388167dfa9bA01C
· NFT certificate smart contract: 0x10a25394DcCc41079624660a329509cd7dE1C204

Where is Salto X based?

We are headquartered in Tallinn, Estonia. Our team is distributed between Estonia, Ukraine and Latvia.

FAQ has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
Have a different question?
Leave your question here and we’ll respond in 24 hours.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.