How Does the Concept of ‘Sufficient Decentralization’ Relate to Token Classification?

The concept of sufficient decentralization is a key factor in determining if a token is still a security under the Howey Test. If the network is truly decentralized, meaning no single entity (like the issuing company) has control over its success, the 'efforts of others' prong of the Howey Test may no longer be met.

Once a network is deemed sufficiently decentralized, the token is more likely to be viewed as a commodity, not a security.