'''Loosely based on https://www.coinbase.com/legal/securities-law-framework.pdf'''
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The Howey Test
The U.S. Supreme Court case of SEC v. Howey established the test for whether an arrangement involves an investment contract. An investment contract is a type of security.
In the context of blockchain tokens, the Howey test can be expressed as three independent elements (the third element encompasses both the third and fourth prongs of the traditional Howey test). All three elements must be met in order for a token to be a security.
^ An investment of money.
{{Investment of money "Are tokens being sold in a crowdsale, at any time, regardless of whether sold for fiat or digital currency (or anything else of value) involving an investment of money?" => This element is probably satisfied. :: This element probably is not satisfied.}}
^ in a common enterprise.
{{Timing "Is the token sale happening before the protocol is functioning on a live network?" => This element is probably satisfied. :: {{sameReturn "Will all token holders receive the same return on their investment in proportion to their holdings?" => This element is probably satisfied. :: {{varyingReturn "Is there a possibility of varying returns between token holders, based on their participation?" => This element might not be satisfied. :: This element is probably satisfied.}}}}}}
^ with an expectation of profits predominantly from the efforts of others.
{{tokenFunction "Is action outside of the network required to make the token functional on the network?" => This element is probably satisfied. :: {{tokenFunction2 "Does the token have a function outside of the network?" => This element is probably satisfied. :: {{tokenMarketing "Is the token sale marketed as an initial coin offering?" => This element is probably satisfied. :: This element might not be satisfied.}}}}}}
The questions to the left will help to give a general estimate of whether these elements are met for a given project.
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