The Web3 Foundation, which supports the Polkadot protocol, has again argued that its native DOT (DOT) token is not a security. In a Twitter thread, the foundation highlighted its efforts to comply with US securities laws and Securities and Exchange Commission guidance on digital assets, stating that DOT has successfully “morphed” and is software, not a security.
The Web3 Foundation republished an excerpt from a December Twitter space in which Angela Dalton, identified as an advisor to the foundation, described how officials accepted the SEC’s invitation to “come in and talk to us.” The foundation subsequently claimed:
“The Foundation ensured that the SEC’s full vision on token morphing was addressed, […] as well as taking steps to manage the distribution of the DOT token so that no one person owns a large percentage of the network, rejecting purchases from VCs interested solely for investment purposes, and promoting the technology but not the token.”
“The Foundation is confident that DOT has transformed and is not a security. It’s software,” the foundation concluded. Polkadot is a multichain protocol that has been running 66 blockchains and its Kusama parachain network as of October 2022. Founded by Gavin Wood, a co-founder of Ethereum, the Web3 Foundation published the Polkadot whitepaper in 2016, according to a Medium post starting in December 2021 with the introduction of parachains.
1/ @Polkadot DOT native token is and always has been a coordinating software. Following W3F’s announcement that DOT is transforming into a non-security company, read the following thread to learn how DOT was able to transform, what Polkadot is, and what the network’s main goals are. pic.twitter.com/sAnU56GnIh
— Web3 Foundation (@Web3foundation) January 26, 2023
“Our experience has been positive,” says the foundation’s contribution. “The SEC has welcomed meetings with the Web3 Foundation and there has been a spirit of open communication and dialogue.”
Related: Staking on Polkadot, explained
The Web3 Foundation first declared DOT non-secure in November. His position has apparently not been confirmed by the SEC. The foundation’s reasoning echoes key points in the SEC’s case against Ripple. “Morphing” is a concept put forward in a speech by former SEC official William Hinman at the Yahoo Finance All Markets Summit in June 2018.
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