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Charter Foundation aims to cut token launch costs with shared framework

The program says a typical three-entity setup has cost more than $100,000 before a token generation event, and it targets reducing upfront costs by more than half via a dedicated Cayman Islands company.

Reported · Written up by our desk · Regulation

A coalition of crypto firms, law and audit providers has launched Charter Foundation, a framework intended to lower the cost and complexity of launching tokens, The Block reports. The group says the approach uses a dedicated Cayman Islands company for each project to reduce upfront launch expenses.

Charter Foundation was developed by the team behind Ink Foundation, which is associated with the Ink Ethereum Layer 2 network. The Block reports Ink Foundation and Charter Foundation are not connected to Kraken, even though Ink was released by the exchange.

According to Charter Foundation, token launches have typically required projects to create three separate entities, including a labs company, a Cayman Islands foundation, and a British Virgin Islands issuance subsidiary. The group says building that structure from scratch, including independent director fees, can cost more than $100,000 before a token generation event.

The Block also reports the initiative comes as token launches and token-linked venture deals have declined and face a higher bar, with some investors moving toward equity structures. The outlet says Charter Foundation’s principal architect, John Wu of Ink Foundation, framed the launch as preparation for the next market cycle, when demand is expected to return.

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