🛡 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:
Investment of Money
Validators stake tokens (not "invest") to participate in ID validation. Not purely passive.
Common Enterprise
Not a common enterprise if rewards are earned individually based on task accuracy.
Expectation of Profits
Validators are paid for work done, not for holding token.
Efforts of Others
Validators perform work themselves; profit is not derived solely from others.
✅ 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.
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