Blockstack’s financial operations have run almost exclusively on Stacks token sales – a revenue stream the decentralized web builder said it does not expect to tap into again.

The public benefit corporation’s FY 2019 revenue – $23.3 million – came almost entirely from its Regulation A+ compliant token sale that raised over $23 million in September 2019, according to SEC filings Wednesday. Its 2017-2018 revenues came from exempted token sales, the filing showed.

Cash reserves entering 2020 totaled $18.6 million including a restricted $4.4 million that Blockstack unlocked by notching its millionth “Verified User” in January 2020. Blockstack’s definition and counting of verified users has been questioned in the past. Had Blockstack not hit the million mark it would have been compelled to return purchaser funds.

That metric milestone nevertheless granted Blockstack access to $2.4 million in additional crypto. Its full bitcoin and ether reserves vere valued at $7.8 million at the end of 2019. 

Blockstack – which is building a decentralized network and app ecosystem for Web 3.0 – said in the filing it might liquidate some of those crypto assets to keep financing its existence. Fresh token sales are off the table, though.

“Blockstack does not expect to generate revenue from Stacks Token sales in the future,” save sales of the 110 million tokens already in its treasury, it said.

See also: Blockstack Pledges to Enforce Patents for ‘Defensive Purposes’ Only

The company thinks it will not have to treat its Stacks tokens as securities forever. Based on guidance from the U.S. Securities and Exchange Commission in April 2019, Blockstack said it believes the independence of its network will ultimately free blockstack from federal and state securities law reporting requirements because Stacks will no longer be considered a security. 

Determination day may come later this year – either in Q2 or Q3 – with the release of Stacks Blockchain 2.0. At that time, the board of directors may reevaluate its stance on Stacks and the Howey test, according to the filing. 

“We expect this determination to turn on whether the Blockstack network is sufficiently decentralized,” the filing said.

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