What Role Does the Token’s “Consumptive Use” Play in Avoiding Howey Classification?

"Consumptive use" refers to the token's utility in accessing a product, service, or feature within a network, rather than holding it purely for speculative profit. When a token has significant and immediate consumptive use, it weakens the "expectation of profits" prong of the Howey Test.

Purchasers are seen as buying the token for its functional value, not solely for financial return derived from the efforts of others. This is a key argument used to classify a token as a non-security utility token.