“In the short term the market is a voting machine, in the long term it’s a weighing machine…”

Build for Weight

After reading this explainer, we encourage you to review our FAQs, where we address many common business strategy, implementation, and compliance questions. Found here: Salutary Frequently Asked Questions.

What is Salutary?

Salutary transforms tokens into legally enforceable, institutional-grade mergers and acquisition (M&A) assets. We also provide comprehensive financial auditing - the Deloitte of DeFi.

• What: Salutary tokens are binding change-of-control instruments. When a holder crosses a predefined ownership threshold (e.g., 51%), they can lawfully acquire control of the business under a standardized, pre-agreed M&A framework administered by Salutary. We enable and enforce standardized M&A through token ownership.

• Why: You want your token to reflect the fundamentals of your business: cash flows, assets, and balance sheets - onchain and offchain. Salutary facilitates this by legally tethering tokens to corporate control. When control is enforceable, accountability is real, and institutions can invest. With Salutary, fundamentals matter. 

• 1. Real value tied to the token: The business is valuable because it produces cashflows; the token is valuable because it controls the business.
     
     

  2. Price discovery: Tokens have ability to reflect financials and business success
     
     

  3. Exit paths: Standardized buyouts, tenders, and M&A-style activity onchain.
     
     

  4. Institutional access: Assets that professional capital allocators can own.

• Who we are: Salutary is a corporate-actions, M&A, and audit platform that gives tokens enforceable control rights over the issuing company — similar to how equity transfers control — and standardizes institutional audits for onchain businesses. 

• Who it’s for: Salutary is for crypto-native and traditional businesses alike: DeFi exchanges, SaaS companies, franchisors, studios, marketplaces, any operator seeking onchain, liquid exposure to their fundamentals. Whether it resides in meatspace or cyberspace, we apply to it.

Salutary tokens are the only enforceable, rights-bearing assets in crypto.

We are the connective tissue between token, business, and onchain finance.

The sinew that binds company, coin, and fundamentals.

• How it works: At a predefined ownership threshold, a tokenholder can trigger a Salutary-administered corporate action to transfer control of the company. We coordinate the transfer of treasury, bank accounts, IP (patents, trademarks, copyrights), domains, code repositories, signing keys, service accounts, cloud infrastructure, vendor contracts, and both on and offchain assets. Just like traditional M&A. 

• Legal basis: We don’t reinvent law; we bind tokens to onchain and offchain resources using the same cross-border framework Fortune 500s rely on. All Salutary corporate actions are governed by Singapore law, resolved via Singapore International Arbitration Centre (SIAC), and enforceable globally under the 1958 Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention). That’s 170+ jurisdictions of enforceability. All Salutary events are designed to withstand legal scrutiny, which is precisely why they are enforceable and accountable.

Enforceability → Accountability → Investability

Token ownership threshold → change-of-control M&A rights → transfer of corporate control of business and assets

Not reinventing law → binding Singapore arbitration → global enforceability via New York Convention

Investable assets require accountability, and accountability demands enforceability. Salutary embeds accountability in tokens through enforceable business control and financial auditing. A Salutary token is an institutional-grade assets, as in something a private equity firm could own. An institutionally legible asset has the ability to attract institutional-grade capital.

Documentation on our enforcement process and the strategy behind it:

• Salutary’s Global Enforcement Framework (how we facilitate global enforcement of our M&A events)

• The Salutary Whitepaper speaks to the financial history and empiricism behind our model.

• If It Happened Onchain, Did It Happen In Real Life? (the game theory of Salutary). 

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What Problem Does Salutary Solve?

For businesses:

• You've built a real business but your token has no ability to reflect it 

• You're tired of tokenomics games and the myopic distractions that come with it.

• Your revenues should be reinvested back into your business, not paying a dividend to justify the existence of a token

• You want to focus on building your business, not financial engineering

• You want to attract institutional capital, and thus need an institutional-grade asset

For tokenholders:

• You want tokens that represent the success and fundamentals of the business

• You're looking for long-term value creation rather than short-term ponzinomics

• You want an asset with enforceable rights that enforceably controls the issuing company

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Salutary’s Financial Auditing

Confidence in company fundamentals necessitates transparency. If tokens are meant to reflect business fundamentals, those fundamentals must be standardized, independently verified, and repeatable.  This means finances must be presented in a standardized, verifiable way. In crypto, when we hear the word “audit” we only think “code”; an audit also applies to financials. We are the Deloitte of DeFi.

• What we do: Salutary also acts as a financial auditor, bringing Big-Four-style rigor to token-issuing businesses. We perform audited earnings reports and verify that assets and financials are sound and transparently presented. We are bringing well-known business best practices to token-issuing companies.

Standardization → Verifiability → Credibility → Investability

• Our Mission: give onchain businesses the same financial clarity and reporting that elite companies enjoy, without burying you in red tape or unnecessary requirements. We are guided by US GAAP standards (and IFRS where appropriate) with adaptations for onchain operations. Our reports are institutionally legible, suitable for diligence by funds, and exchanges.

When a token enters the Salutary Standard, it gains M&A enforceability and high-integrity financial reporting. Fundamentals become visible, verifiable, and comparable across issuers. It's long overdue for DeFi. 

Comprehensive Financial Reporting

Salutary works with partners to implement quarterly financial reporting that includes:

• Income Statements: Clear reporting of revenue, profit/loss metrics, cost breakdowns, gross/operating/net margins, etc..

• Balance Sheets: Transparent accounting of all assets and liabilities (onchain and offchain), token obligations, deferred revenues, working capital, etc.

• Cash Flow Statements: Operating, investing, and financing flows; reconciliation to onchain and offchain movements. 

• Management’s Discussion & Analysis (MD&A): Strategy, risks, variance analysis, KPIs, and guidance policy. 

• Crypto-native KPIs (as applicable): TVL composition, unit economics per user/tx, take-rate, emissions schedule, retention cohorts, LTV/CAC, validator yields, treasury runway. 

Asset Verification and Validation

Our independent verification processes include:

• Onchain Treasury and Reconciliation: Address attribution registry; wallet inventories; smart-contract balances; Tx-level tie-outs to financial statements.

• Offchain Confirmations: Bank attestations, exchange and custodian confirms, fiat/settlement accounts, stablecoin issuers.

• Liabilities & Counterparty Risk: Verification of payables, token redemption obligations, and exchange/custodian exposures.

• Multi-sig and Security Audits: Multi-sig configuration reviews, key management, segregation of duties, signatory policies.

Annual Independent Audit

Each year, Salutary conducts a full-scope audit that provides:

• Opinion on Financial Statements: Independent conclusion that statements are fairly presented in all material respects under the applicable framework.

• Internal Controls Review: Assessment of financial controls, access controls, and change-management over code paths that affect financial data.

• Treasury & Risk: Evaluation of treasury policy, concentration and counterparty risk, and liquidity runway.

• Going-concern analysis and operational sustainability review

Advantages of Financial Transparency

Auditing and verified financials are well-known, basic business practices - yet they are completely disregarded in crypto. This level of financial accountability is a strategic advantage because:

1. Market Confidence: Investors can accurately and concretely assess your business’ financial health, whereas your competition offers no such accountability and transparency

2. Institutional Readiness: Your business meets the due diligence requirements of sophisticated investors, funds, exchanges, and lenders.

3. Risk Mitigation: Early identification of financial or operational challenges

4. Regulatory Positioning: Demonstrates commitment to transparency and responsible governance and oversight

Also of note: there are substantial marketing benefits to Salutary. Quarterly reporting, earnings announcements... these are all very public, high-impact events focused on your business and product. With Salutary, you'll be one of the very first DeFi businesses in the history of the industry to release public earnings! This is not only an educational event for investors, but doubles as a strong marketing opportunity. Salutary intends to turn earnings reports into uniquely engaging, high-visibility events for all our partners.

Learn more here: Salutary Financial Reporting Framework.

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RISK DISCLOSURES & DISCLAIMERS

Salutary tokens are "change-of-control" governance instruments that may, at predefined thresholds, facilitate an enforceable transfer of business assets. They do not confer any rights to profit participation, dividends, revenue shares, or any guarantee of market valuations. Neither Salutary nor its partners make any representation that token price will correlate with business performance. Market pricing is determined by independent actors and may not reflect intrinsic value.

Enforcement of acquisition events remains subject to applicable law, commercial feasibility, and jurisdictional constraints. Salutary reserves sole discretion in selecting enforcement methodology based on cost-effectiveness and legal practicability. No guarantee of successful enforcement exists in all jurisdictions. If enforcement actions prove unlawful, expose the company or its principals to disproportionate risk, or become economically impracticable, Salutary reserves sole discretion to suspend, modify, or decline proceedings.

All disputes arising under this Framework are subject to individual arbitration under SIAC Rules in Singapore. Class, collective, or representative actions are expressly waived.

Salutary provides administrative enforcement services only and exercises no investment discretion, custody functions, or fiduciary duties toward any party. The Parties agree that neither Salutary nor any vehicle formed under partnership is intended to be, or shall be deemed, an “investment company” within the meaning of the U.S. Investment Company Act of 1940.

Salutary does not undertake, and Partner expressly disclaims any expectation of, fiduciary duties, or advisory services regarding regulatory compliance, business strategy, tax strategy, or legal guidance. Salutary does not provide digital payment token services as defined under Singapore Payment Services Act, nor do we facilitate token trading, or offer token custody. Partner independently manages all token-related activities. All token-related activities remain solely with Partner. Salutary does not provide financial advice under the Singapore Financial Advisers Act or Securities and Futures Act. All investment decisions remain with relevant parties.

This information is for educational purposes and is not an offer of securities nor is it legal or tax advice. Tokenholders should consult their own advisors regarding the implications of any acquisition event.

Any protections described herein are contractual governance mechanisms, not guarantees of economic outcome. They are designed to create procedural fairness and transparent processes, not to ensure any particular market result or token valuation.

Salutary documentation may contain forward-looking statements regarding potential acquisition scenarios and enforcement mechanisms. Actual results may differ materially due to factors beyond Salutary's control.

This document is proprietary to Salutary Pte. Ltd. and subject to the terms of the Master Services & Enforcement Agreement.

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See Salutary FAQs here

Salutary documentation found here