What constitutes a security:
1) It is an investment of money
2) There is an expectation of profits from the investment
3) The investment of money is in a common enterprise
4) Any profit comes from the efforts of a promoter or third party

Why DNotes is not a security:
1) DNotes currency can only be purchased from existing DNotes stakeholders who are willing to sell; no money is invested in DNotes as a result of these transactions.
2) It has been made quite clear that the free market dictates the price of DNotes, and that no investment is a sure thing. DNotes is only worth the price people are willing buy or sell it for on the open market.
3) Since all DNotes transactions are independent deals conducted by a willing buyer and seller on the open market, there is no investment taking place.
4) Any profit generated by third parties participating in the DNotes cryptocurrency network is theirs to keep.