How Do Tokenomics Influence the Classification of a Token as Utility or Security?

Tokenomics, the design and economic structure of a token, are crucial. Factors like fixed supply, staking rewards, governance rights, and mechanisms for value accrual can suggest an investment motive, leaning towards a security classification.

If the token is primarily required for network access or to pay for services, it strengthens the utility argument. The structure must align with the claimed function.