Explanation of Why Gini is Not Considered a Security

Gini tokens are not considered securities because they do not meet the criteria typically associated with securities, such as the expectation of profits derived from the efforts of others. The value of Gini tokens is primarily driven by their utility within the KALP ecosystem and the demand for the network’s services.

Furthermore, Gini token holders do not receive any ownership rights, dividends, or other financial returns from the KALP Foundation. The tokens serve as a means of accessing and interacting with the ecosystem’s features and services, rather than representing an investment in the Foundation itself.

The KALP Foundation has structured the token offering and distribution in a manner that emphasizes the utility nature of Gini tokens, with a focus on promoting ecosystem growth and adoption rather than speculative trading.