The Polkadot community is considering conducting a study focusing on the process of converting DOT tokens away from the security definition into software.
Polkadot announced that it achieved status for DOT to exist as a token in November 2022, a process the project says is a direct result of three years of dialogue with the U.S. Securities and Exchange Commission. period (SEC).
Now, Polkadot is considering funding a study to explore how this achievement is managed. The proposed study will provide guidance on the state of DOT tokens and the broader crypto ecosystem.
There is a Treasury Proposal to summarize the process behind morphing $DOT from security to software so that other projects can learn from the way Polkadot performed this transition:https://t.co/mtphHFX2mo
— Alice und Bob (@alice_und_bob) February 13, 2023
The move comes amid growing regulatory scrutiny from the SEC and other regulators, including recent enforcement actions against stablecoin issuer Paxos and exchange Kraken this month. has raised concerns about more violent sweepstakes targeting the crypto space.
The proposal requested 14,776.74 DOT tokens, approximately $90,000 to fund research. This grant will cover work done by development team members and experts on the token vs. securities debate including some of those who participated in Polkadot’s dialogue with the SEC. . Proposed request to transfer money in two installments, each installment is 7,388.37 DOT.
However, while Polkadot has previously claimed success in interacting with the SEC, the regulator has not publicly confirmed any such regulatory approval. Therefore, on November 5, 2022, Polkadot development organization Web3 Foundation had to once again assert that DOT is not a security in order to strengthen investor confidence.