Ink Foundation, GSR and others open Charter Foundation to help cut token launch costs

A group of crypto firms has launched Charter Foundation to offer a new framework to help founders reduce the cost of launching tokens.The launch comes after token launches and token-linked venture deals have declined and continue to face a higher bar, with many crypto investors shifting toward equity structures, as The Block recently reported. John Wu, counsel at Ink Foundation and Charter Foundation's principal architect, told The Block the timing is meant to prepare for the next cycle."Crypto markets are cyclical, and the best time to build for the next wave of demand is often before it arrives," Wu said. "Quieter markets give teams the space to build durable infrastructure that's ready when activity returns."Charter Foundation was developed by the team behind Ink Foundation, the developer of the Ink Ethereum Layer 2 network. Ink was released by crypto exchange Kraken, but Charter Foundation is not connected to Kraken, an Ink Foundation spokesperson told The Block.Charter's partners include crypto market maker GSR, law firms Carey Olsen, Renno & Co, Cooley and Fenwick, and audit firms ChainSecurity and Zellic. The group has developed a shared legal framework meant to make token launch structures cheaper and easier to set up.How Charter Foundation worksCharter Foundation said token launches have typically required projects to set up three entities, including a labs company, a Cayman Islands foundation and a British Virgin Islands issuance subsidiary.Each project usually has to build that structure from scratch. Including independent director fees, the setup can cost more than $100,000 before a token generation event, Charter Foundation said."The three-entity launch structure is well understood, however, every project needs to rebuild it from scratch," Chris Duncan, partner at Carey Olsen and leader of its fintech and digital assets group, said in a statement. "Charter seeks to standardise the framework while preserving what matters: clean separation, genuine independence, and a defined path forward."For each project, Charter Foundation forms a dedicated Cayman Islands exempted company as the launch structure. While the project is under Charter, that entity is governed by Charter Foundation, whose board includes Glenn Kennedy and Petri Basson.Kennedy is managing director of Leeward Management and has more than two decades of experience in offshore governance, regulatory law and corporate structuring. Basson founded Hash Directors, chairs the Blockchain Association of the Cayman Islands and previously led KPMG Cayman's digital asset team.After a successful launch, the Cayman company converts into an independent foundation and separates from Charter, meaning the project does not remain dependent on Charter over the long term, Charter Foundation said."Founders come to us to build, and instead they lose time, money, and mindshare assembling and operating offshore structures, which takes them away from what they should be doing, which is building better product," Toufic Adlouni, co-founder of Renno & Co. and founding partner of Charter, said in a statement. "Charter takes that entire workstream off their plate, so builders can concentrate on building rather than corporate bureaucracy."The Funding newsletter: Stay on top of the latest crypto VC funding and M&A deals, news, and trends with my free bi-monthly newsletter, The Funding. Sign up here!