Frequently Asked Questions

Questions you will have answered after reading:

• What does Salutary do?

• Why would founders want this?

• How is this different from regular crypto governance tokens?

• How should I treat my token post-Salutary?

• Does this turn my token into a security?

• Does this limit my token from doing other things?

• Does this only work for crypto-native businesses?

• Does my business need to be set up as a specific business entity to work with Salutary?

• What happens if someone accumulates enough tokens to effect a Salutary change of control event?

• Does this only impact the token if we get acquired?

• What if I don’t want to sell my business?

• What if my company isn’t located in Singapore?

• What happens after an acquisition? What happens to minority token holders after an M&A event? How does Salutary make money?

• Does Salutary have its own token?

• Who's a good fit for Salutary?

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What does Salutary do?

Salutary transforms tokens into legally enforceable M&A assets. We also provide institutional-grade financial auditing. 

Salutary is a mergers and acquisitions (M&A) framework that gives your token legal teeth by providing it binding change-of-control (COC) abilities. At a predefined percentage of token ownership, Salutary enforces and oversees the transfer of the issuing company’s treasury, bank accounts, technical infrastructure, IP, and any other onchain and offchain resources. We enable M&A through token accumulation. 

For example: if someone accumulates 51% of the token's fully diluted supply, they can acquire the company 

Salutary completely changes the asset class of your token.

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Why would founders want this?

From experience over many calls with investors and partners, we’ve found much confusion is addressed by simply swapping the word “token” for “stock” and then asking the same question.

What are the motivations for issuing stock? Why provide an accountable asset that’s an extension of the business? What is the rationale for founders to raise capital and in exchange issue an asset tied to the company they own? The answer is obvious, and it’s no different for Salutary.

Founders who want their token to express the fundamentals of their business want Salutary. We facilitate this by transforming the token into a serious instrument. The business is valuable because it produces cashflows, the token is valuable because it controls the business. 

Founder benefits:

1. Your token can now credibly represent the fundamentals of your company

2. You can reinvest 100% of your revenue into growth instead of paying dividends

3. Your token becomes an institutionally legible asset, with the ability to attract institutional-grade capital

4. You demonstrate a long-term mindset and commitment to value creation and transparency by adopting Salutary.

We turn your token into a completely different asset, one that has the mechanical ability to reflect the success of your business. You will adopt us because the greatest wealth creator in human history has been building a valuable company and issuing an accountable instrument that controls it, and this is what you aspire to.

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How is this different from regular crypto governance tokens?

We use the term “vote” very liberally in DeFi. A vote is something you must do, however there is no real enforcement for anything in crypto; who’s making you implement governance actions you don’t like? DeFi does not issue voting tokens, they are suggestion tokens.

DeFi governance tokens are devoid of real-world enforceability. This is why financialized games and parasitic behavior are the norm: a corrupt asset has produced corrupt incentives, leading to the corrupt behaviors we all see. Salutary exists in complete rejection of this toxic feedback loop. 

Salutary tokens are M&A voting tokens.

We do not issue acquisition suggestions, these are legally binding acquisition events. We take enforcement extremely seriously. Tokens won’t express fundamentals if they provide “meh, only if I feel like it” M&A transactions.

All Salutary M&A events are governed by Singapore law and enforceable globally through SIAC arbitration and the New York Convention. We use the same framework that corporations do to enforce cross-border agreements. Without judicial enforceability, it's merely an acquisition suggestion. All Salutary events are engineered to be legally binding and to withstand judicial review if challenged.

There is nothing in crypto like us. You can learn more here: Salutary: The Global Enforcement Framework.

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How should I treat my token post-Salutary? Do I have to do anything specific?

It simplifies everything. No more complex yield mechanisms or convoluted token utility schemes; these are distractions, and with Salutary you no longer need to waste your company (and mental) resources on them.

Your sole focus shifts to creating real value with your business: growing revenue, users, and product quality, not financially engineering coins. You can now prioritize just the business, and the token becomes a reflection of company fundamentals rather than a separate product requiring resources constantly be poured into it.

We do not tell partners how to manage their business or how to use their token, your token distribution is still entirely up to you.

However, you should take your token much, much more seriously post Salutary partnership. It should not be handed out like candy. Things like “fair launch” are not applicable concepts for a concretely valuable asset (what business on earth “fair launches” their debt, equity, or any other asset of worth?). Your token is now highly serious and potentially quite valuable, you should not be anchoring your decisions to what the people with valueless coins are doing.

Here are suggested guidelines Salutary provides on how to conceptualize and manage your token: Salutary Implementation: Pre & Post Token Generation Guidelines.

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Does this turn my token into a security?

Salutary tokens are legally structured as M&A-enabled ‘change of control’ vehicles. Salutary tokens are:

• NOT profit-sharing

• NOT dividend-bearing

• ONLY enforceable “change of control” mechanisms

Salutary acts as legal connective tissue for the token to control the business.

You are at far greater risk of securities designation if you pay a dividend (“fee switch”) than you are partnering with Salutary. There is no such thing as reward without risk; the risk must be contextualized. Compared to what? Salutary is the cleanest, most-direct, canonical method to capture and create value while maintaining compliance.

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Does this limit my token from doing other things?

Salutary does not constrain you from having your token act in other ways. If you also want it to have utility within your platform, that's fine. Want it to pay a dividend/fee switch? We will not stop you (though strategically speaking we advise against this, for reasons articulated in the whitepaper). We don't tell partners how to manage their business or their token.

And of note: with the Salutary mechanism on your token, buybacks become an applicable concept. In order for a buyback to work, the asset that is being reduced in supply must already be valuable; if it's already valuable, then buybacks are an excellent, tax-advantaged way to return capital. If the asset is fundamentally worthless, you cannot reduce the supply of a worthless thing and act like the remaining units are now worth something.

With Salutary, the token has intrinsic worth relative to the company it enforceably controls. They are effectively legal control units over the business; if you reduce their supply, the remaining units are now more valuable.

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Does this only work for crypto-native businesses?

Not at all! Salutary is applicable for small business, IP, and more.

Salutary works for any asset that has an owner. In fact some of our partners are media companies and individual pieces of IP, they're not crypto-native. All assets and businesses, from intellectual property to online stores to car dealerships, can benefit from the Salutary model and monetize themselves in a unique way previously only available to large companies. This is an instance where crypto infrastructure can sincerely help regular, working people.

Small and medium-size business owners: Salutary is not only for crypto companies, we want to hear from you!

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Does my business need to be set up as a Foundation or any kind of specific business entity to work with Salutary?

Nope, your business can be set up however you'd like; you don't need to change anything about it. Only if an M&A event occurs does Salutary create a foundation structure, then has the business assets transferred into it, and then gives control of this new foundation to the acquirer.

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What happens if someone accumulates enough tokens to effect a Salutary change of control event?

When a token holder or group of holders reaches the predefined threshold (e.g. 51% of the token total supply), they gain the ability to initiate a legitimate change of business control process through onchain vote. This allows them to legally acquire the infrastructure, IP, frontend, and all onchain/offchain assets of the business. This process is overseen and upheld by Salutary to ensure legal compliance and validity, and is done consistent with Singapore law.

Learn more here: The Global Enforcement Framework.

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Does this only impact the token if we get acquired? What if I don’t want to sell my business?

You don’t have to get acquired for Salutary to work for your token.

The goal is to have the token reflect the fundamentals of your business, this is not dependent on you being acquired, but rather the credible potentiality of it always being present.

It’s the potential of credible takeover that keeps the token tethered to the business, whether or not M&A ever happens. Salutary inspires market confidence and credibility as a third-party enforcer of M&A processes; we act as connective legal tissue between company and token.

Important: Most companies don’t get acquired and their stock is still representative of the business. The stock doesn’t have to actively exercise a takeover to be valuable, but it must always have the ability to. So long as it can control the business, it trades as an expression of that business.

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What if my company isn’t located in Singapore?

All Salutary M&A events are governed by Singapore law and enforceable globally through the New York Convention. We use the same framework that corporations do to enforce cross-border agreements. In short: it doesn’t matter if you’re not in Singapore. Though if your business is located in a country with a spotty record of cross-border contract enforcement, like Russia or China, that is something we’ll need to address beforehand.

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What happens after an acquisition?

What happens when private equity acquires a company? Same answer. There’s new management in town. Maybe everyone quits. Maybe they totally change how things operate. It’s up to them, it’s their company now. We make sure it all gets transferred over compliantly.

If leadership changed, they will likely implement changes. It’s their prerogative. We do not tell partners how to run their business.

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What happens to minority token holders after an M&A event?

We take minority tokenholder protections seriously. When an acquisition occurs the acquirer must state their intent in respect to continuing business operations, discontinuing, etc. and Salutary makes sure they adhere to a predefined framework that’s designed to stop soft rugs and shortchanging minority holders.

You can read more about our process here: Salutary Minority Tokenholder Protection Framework.

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How does Salutary make money?

We receive an allocation of partner token that we hold in our treasury. We don't intend to sell these tokens to monetize; our incentives are aligned with our partners' long-term success this way. The more valuable our partners become, the more valuable our treasury.

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Does Salutary have its own token?

Yes. The Salutary token is a derivative of our treasury, which holds all our partners' tokens. It acts as an index intended to reflect all Salutary-backed businesses.

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Who's a good fit for Salutary?

Salutary should only appeal to serious, sincere, long-term-minded owners and those seeking to create legitimate companies, because we only benefit people who fit this description.

Partnering with Salutary is a strong signal you have a dedicated, value-minded approach to your business. It's a mark of prestige, indicator of intent, and display of transparency that you’ve opted into our framework.

If this describes you, we'd love to work with you and think you'd be an ideal fit. It doesn't matter if you're a brand-new startup, multi-location enterprise, small business, DeFi bluechip, etc.. Salutary can elegantly overlay onto any new or preexisting business and/or asset.

Ready for your token coming-of-age event?

Please reach out to us here.

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The Salutary Way: Build for Weight, Create the Most Wealth

“Show me the incentives and I’ll show you the outcomes.”

• Fundamentals drive value: Revenue growth, user adoption, and fundamentals become directly relevant to tokenholders

• Incentives align: Both business and tokenholders want the same thing: sustainable value creation

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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 makes 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 must be resolved by individual SIAC arbitration seated in Singapore; class or representative actions are waived. All disputes arising under this Framework are subject to individual arbitration under SIAC Rules in Singapore. Class, collective, or representative actions are expressly waived.

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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Salutary documentation found here.