What Ongoing Oversight or Actions Could Cause a Functional Token to Revert to a Security Classification?

A functional token could revert to a security classification if the network's governing body or founding team takes actions that re-centralize control or re-establish an investor's expectation of profit derived from their efforts. Examples include the founding team resuming active, profit-generating management of the network, or making material changes to the token's economics that grant holders equity-like rights.

Any action that makes the token's success again reliant on a central, identifiable promoter could trigger a re-application of the Howey Test.