Not every token model will survive regulatory scrutiny.

These four types face serious headwinds:

💔 Revenue-sharing tokens designed to generate yield
💔 Tokens promising direct ownership stakes
💔 Decentralized projects masquerading as DAOs without genuine decentralization
💔 Platforms maintaining centralized control over execution while marketing themselves as DeFi solutions

The common thread? They all trigger securities law classification. As regulatory frameworks tighten globally, distinguishing between utility tokens and security tokens becomes critical. Projects operating in gray zones may find themselves suddenly non-compliant. Token designers and platforms should evaluate their tokenomics and governance structures carefully—what works today might violate tomorrow's regulatory standards.