Glossary
Token warrant
A right to receive tokens granted alongside an equity investment, typically for no separate consideration.
The token warrant emerged as a lower-risk alternative to selling tokens directly: the investor buys equity, and the token right is an attached benefit rather than the thing being purchased.
It also keeps the equity and token cap tables related to each other, which matters more than it sounds — the two drifting apart is a common and painful discovery during a later raise.
Where this comes up
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