Thread by @Dagnum_PI

1/🔍SEC Chairman Gensler suggests Proof-of-Stake (PoS) tokens may be securities under the Howey Test, but @Conste11ation's $DAG with Proof-of-Reputable-Observation (PRO) evades this definition. Let's dive in!🧵
coindesk.com/policy/2023/03…

2/💡PoS tokens raise concerns as investors expect returns by purchasing and staking tokens. However, in @Conste11ation's PRO, tokens are bonded to increase the reputation of a node, not directly tied to utility.

3/📈With $DAG, tokens are directly tied to bandwidth, not mere staking for returns. This distinction separates $DAG from other PoS tokens and potentially keeps it out of the SEC's securities classification.

4/🤝Gensler urges token operators to seek compliance, but the unique nature of @Conste11ation's PRO consensus mechanism keeps it distinct from traditional PoS systems, avoiding securities-related complications.

5/🔁While Gensler and CFTC Chairman Behnam debate crypto regulation, $DAG's PRO mechanism steers clear of being labeled as a security, ensuring a smoother path forward in the crypto landscape.

6/💼 Recent NYAG lawsuit against #KuCoin brings attention to the classification of ether as a security in state court. However, $DAG's PRO consensus mechanism sidesteps these issues.

7/🌐 @Conste11ation's $DAG and PRO set it apart from typical PoS tokens, mitigating concerns about securities classification and ensuring a more secure future for the project in the ever-evolving regulatory landscape. #DAG #PRO #CryptoRegulation