> ## Documentation Index
> Fetch the complete documentation index at: https://docs.metadao.fi/llms.txt
> Use this file to discover all available pages before exploring further.

# The Colosseum STAMP

> Raising private capital before your MetaDAO ICO

## Overview

The **STAMP** (Simple Token Agreement, Market Protected) is an investment contract from [Colosseum](https://www.colosseum.com). It provides a clear path from private capital to a public MetaDAO ICO.

<Card title="Download the STAMP" icon="file-contract" href="https://www.colosseum.com/stamp">
  Get the STAMP document and learn more at Colosseum
</Card>

## Why the STAMP Exists

Traditional crypto fundraising instruments like SAFEs + token warrants create dual equity + token structures that lead to:

* Confusion for tokenholders about where value accrues
* Potential extraction by insiders
* Unnecessary costs and complexity

The STAMP solves this by making the **token the sole economic unit** — governed, protected, and aligned via the MetaDAO protocol. Full motivation: [Colosseum's announcement](https://blog.colosseum.com/introducing-the-colosseum-stamp/).

## Who Is the STAMP For?

* **New startups:** Founders with no existing legal entity who want to raise seed capital before their ICO
* **Existing cap tables:** Founders with equity structures and existing investors who need to migrate to a token-only model

## How the STAMP Works

### For New Startups

1. **Set up entity**: Create a Cayman SPC/SP entity through the MetaDAO interface
2. **Sign STAMP**: Investor signs the STAMP and sends funds (typically stablecoins) to your wallet
3. **Use funds**: Funds can only be used for product development and operating expenses
4. **ICO occurs**: Remaining balance transfers to DAO-controlled treasury along with IP
5. **Token delivery**: Investors submit a Delivery Notice to receive their tokens

### For Existing Cap Tables

1. **Create entity**: Set up a Cayman SPC/SP entity
2. **Sign STAMP**: Any existing SAFE, note, or convertible is terminated and replaced
3. **Clean migration**: Private investors receive tokens as specified in previous agreements
4. **Market protection**: All tokenholders receive governance protections via MetaDAO

## Key Terms

### Investor Reserve

Each STAMP investor is allocated a **fixed portion** of the project's future token supply:

* Must be equal to or below **20%** of all project tokens
* Removes ambiguity and eliminates post-hoc renegotiation
* Provides predefined token entitlement that cannot be diluted

### Team Allocation

The STAMP specifies milestone-based team allocation:

* **Minimum**: 10% of total token supply
* **Maximum**: 40% of total token supply

Ensures adequate token share for ICO participants.

### Token Unlock

* Tokens enter a **24-month linear unlock** schedule once the Delivery Notice is received
* Aligns long-term incentives between investors and the project

## Benefits

### For Founders

| Benefit                 | Description                                        |
| ----------------------- | -------------------------------------------------- |
| **Clean structure**     | Single token-based ownership, no equity complexity |
| **Cap table migration** | Existing SAFEs/warrants cleanly convert            |
| **Preserved autonomy**  | Maintain control while ensuring transparency       |
| **Cost-effective**      | Simpler legal structure reduces costs              |

### For Investors

| Benefit                | Description                                                |
| ---------------------- | ---------------------------------------------------------- |
| **Market protection**  | MetaDAO's decision markets protect token value             |
| **Clear entitlement**  | Fixed token allocation, no ambiguity                       |
| **Onchain governance** | Real ownership over treasury and IP                        |
| **Rug protection**     | ICOs on MetaDAO prevent rugs and allow fair capital return |

## Using the STAMP

1. Download the STAMP from [colosseum.com/stamp](https://www.colosseum.com/stamp)
2. Consult legal counsel in your jurisdiction
3. Customize the agreement for your startup
4. Proceed to [Getting Listed](/how-launches-work/create) for your MetaDAO ICO

## Resources

| Resource                                                                          | Description                         |
| --------------------------------------------------------------------------------- | ----------------------------------- |
| [Colosseum STAMP Page](https://www.colosseum.com/stamp)                           | Official STAMP document and FAQ     |
| [STAMP Announcement](https://blog.colosseum.com/introducing-the-colosseum-stamp/) | Full background and motivation      |
| [Getting Listed](/how-launches-work/create)                                       | Next steps for launching on MetaDAO |
| [The ICO](/how-launches-work/sale)                                                | How the MetaDAO ICO works           |

## Legal Notice

<Warning>
  Colosseum does not assume responsibility for the contents of, or the consequences of using, drafts of the STAMP. Crypto founders and investors should consult with legal counsel in their countries before using this agreement.
</Warning>