# 🛡 How to Design Around the Howey Test

To avoid classification as a security, your token should have clear, consumable utility in the ecosystem that is not driven primarily by speculative profit. Here's how your concept aligns:

<table><thead><tr><th width="199.55560302734375">Howey Criterion</th><th>Your Solution</th></tr></thead><tbody><tr><td>Investment of Money</td><td>Validators stake tokens (not "invest") to participate in ID validation. Not purely passive.</td></tr><tr><td>Common Enterprise</td><td>Not a common enterprise if rewards are earned individually based on task accuracy.</td></tr><tr><td>Expectation of Profits</td><td>Validators are paid for work done, not for holding token.</td></tr><tr><td>Efforts of Others</td><td>Validators perform work themselves; profit is not derived solely from others.</td></tr></tbody></table>

✅ Your token has strong utility: It acts as a work token for identity validators. They consume it by staking it to participate and earn it for doing meaningful verification work.

⚠ Caveat: You must not market the token as a speculative investment. Focus marketing on ecosystem participation and functionality.