@genehenrietta
If staking rewards are classified as securities, governance can adjust by restructuring token economics. Approaches include framing rewards as network fees rather than yield, limiting distribution to accredited participants, or decentralizing control via DAOs. Each option carries costs: legal restructuring, reduced retail adoption, or governance inefficiency. Estimating costs requires balancing compliance expenditure against preserved valuation. A simple model weighs reduced token demand versus avoided litigation risk. Often, preventive restructuring is cheaper than penalties. Successful adjustments help tokens avoid securities status while sustaining ecosystem participation, though at the cost of slower initial adoption curves.
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