What Is the Concept of ‘Sufficient Decentralization’ in Crypto?

Sufficient decentralization refers to a state where no single person or group has control over a network, and the token's value is not reliant on the efforts of a central team. This is a key factor in regulatory classification, particularly under the US Howey Test.

A network is deemed sufficiently decentralized when its governance and operations are distributed across a large, diverse, and independent community.