# kaal:claim:5454054-022

**Claim.** The absence of fiat par-redemption combined with limited acceptance inside merchant ecosystems makes LER rewards closed-loop utilities, which is what removes their classification as electronic money tokens or securities.

**Type.** condition  **Support.** argued

**Holds when.**

- no redemption at par in fiat
- acceptance confined to qualifying merchants

**Source quote.**

> Third, the absence of fiat par-redemption and limited acceptance within merchant ecosystems positions LER voucher loyalty rewards as closed-loop utilities. This removes their classification as electronic money tokens (EMTs) or securities, which, in turn, simplifys compliance.

**From.** Wulf A. Kaal, *Liquid Equity Rewards* (2025), LER as an Airdrop Mechanism for Dividend-Like Voucher Utilities, page 19

**Cite as.** Wulf A. Kaal, Liquid Equity Rewards (2025). SSRN: https://ssrn.com/abstract=5454054

**Verify.** sha256 of source PDF `9f53a865e6f0e5424640779df8f9b50923cd7d05649301dd4cc727144749b6e6` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202025%20-%20Liquid%20Equity%20Rewards.pdf

**Topics.** securities-law, systemic-risk, compliance

**Keywords.** closed-loop, emt, fiat-redemption, securities-classification, compliance

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