The Web3 Foundation, which supports the Polkadot protocol, has again put forward its argument that its native DOT token (DOT) is not a security. In a Twitter thread, the foundation emphasized its efforts to comply with US securities laws, as well as Securities and Exchange Commission guidance on digital assets, stating that DOT had “transformed” with success and it is a software, not a value.
The Web3 Foundation reposted an excerpt from a December Twitter space where Angela Dalton, identified as an adviser to the foundation, described how representatives accepted the SEC’s invitation to “come and talk to us.” The foundation later stated:
“The Foundation made sure that the full SEC view on token transformation was addressed, […] as well as take steps to manage the distribution of the DOT token so that no one individual has a large percentage of the network, reject buyouts from venture capitalists interested solely in investment purposes, and promote the technology but not the token.”
“The Foundation is confident that DOT has transformed and is not a security. It is software”, concluded the foundation. Polkadot is a multi-chain protocol that had 66 blockchains operating on it and its Kusama parachute network as of October 2022. The Web3 Foundation was founded by Ethereum co-founder Gavin Wood and published the Polkadot white paper in 2016. polkadot finished its release in December 2021 when it launched parachains, according to a Medium post.
one/ @MolesThe DOT native token is, and always has been, coordination software. Following W3F’s announcement of DOT becoming a non-security, read the thread below to learn how DOT was able to transform, what Polkadot is, and the main goals of the network. pic.twitter.com/sAnU56GnIh
— Web3 Foundation (@Web3Foundation) January 26, 2023
“Our experience has been positive,” the foundation says in the post. “The SEC has hosted meetings with the Web3 Foundation and there has been a spirit of open communication and dialogue.”
Related: Staking in Polkadot, Explained
The Web3 Foundation first stated that DOT is not security in November. His position has apparently not received confirmation from the SEC. The foundation’s argument echoes key points in the SEC’s case against Ripple. “Morphing” is a concept introduced in a speech given by former SEC official William Hinman at the Yahoo Finance All Markets Summit in June 2018.
