Howey: Investment of Money

1. Investment of Money

• Self-Directed Collateralization: Users lock cryptocurrency as collateral to issue synthetic assets. This is a self-directed action where users maintain control over their assets through individual smart contracts.

• No Pooling of Funds: Unlike traditional investments, funds are not pooled or transferred to a central entity. Users engage in personal transactions without transferring ownership of their assets to others.

• Interest Mechanism: The interest charged on the collateral discourages long-term speculative holding, aligning the use of synthetic assets with practical, short-term financial strategies rather than investment purposes.

By structuring the collateralization process as a self-directed and individual action, AionicDAO ensures that there is no traditional "investment of money" into a common pool or enterprise, which is one of the criteria of the Howey Test.