Can a Decentralized Exchange (DEX) Offering Tokens Still Satisfy the Common Enterprise Test?
Yes, if the DEX's governance or liquidity tokens are sold to fund the development and promotion of the exchange, and the token holders' profits are tied to the core team's success in building the platform, the common enterprise test can be satisfied. The focus is on the reliance on the efforts of others, even in a decentralized setting.
Glossar
Common Enterprise
Association ⎊ criteria under regulatory review often focus on shared management, common operational control, or unified economic benefit derived from a set of interconnected digital assets or protocols.
Decentralized Exchange (DEX)
Platform ⎊ A Decentralized Exchange (DEX) is a cryptocurrency trading platform that operates without a central intermediary, allowing users to trade digital assets directly from their non-custodial wallets.
Common Enterprise Test
Test ⎊ A Common Enterprise Test (CET) within cryptocurrency, options trading, and financial derivatives represents a standardized, repeatable procedure designed to validate the operational integrity and risk management efficacy of complex systems.
Liquidity Tokens
Representation ⎊ Liquidity Tokens are fungible digital assets issued by decentralized finance protocols to represent a proportional ownership claim on the underlying pooled assets and accumulated trading fees.