Howey: Conclusion
Conclusion: Compliance with the Howey Test
By carefully addressing each criterion, AionicDAO's synthetic assets are structured in a manner that does not meet the definition of an investment contract under the Howey Test. Consequently, these assets should not be classified as securities under applicable securities laws.
Investment of Money: Users engage in self-directed transactions without pooling funds or transferring control to others. The interest mechanism aligns usage with practical financial strategies rather than investment purposes.
Common Enterprise: Each user's position is independent and governed by individualized smart contracts, preventing the formation of a common enterprise due to the absence of pooled resources or interdependent fortunes.
Expectation of Profits: The system emphasizes utility-driven use cases and discourages speculative holding through its interest mechanism, thereby minimizing any expectation of profits derived from investment.
Profits Derived from the Efforts of Others: Users maintain full control over their positions, with outcomes determined by their own actions and market forces, not by the efforts of AionicDAO or third parties.
By structuring its protocol to avoid meeting the criteria established by the Howey Test, AionicDAO ensures that its synthetic assets are not considered securities. This design complies with regulatory standards and promotes responsible, practical financial practices within the decentralized ecosystem.
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