The Polkadot community is considering studying “token morphism,” the technique used to convert the protocol’s native dot token from security into software.
In November 2022, Polkadot declared that it had achieved token morphism, claiming that this was the end result of three years of discussions with the U.S. Securities and Exchange Commission. According to a post on its governance forum, the organization is now considering funding research that will examine how it accomplished the accomplishment.
According to the idea, Polkadot and the larger crypto community will receive guidance on token morphism from the proposed purple paper. It happens in the midst of increased regulatory scrutiny from the SEC and other regulators, including enforcement actions this month against crypto exchange Kraken and stablecoin issuer Paxos that have raised concerns about broader enforcement measures aimed at the U.S. crypto market as a whole.
To support the research, the proposal asked for 14,776.74 dot tokens ($90,000). Several of the individuals that took part in Polkadot’s conversation with the SEC will be among the team members and ad hoc subject matter experts whose work will be covered by this financing. According to the idea, the money would be given in two payments of 7,388.37 dot each.
Polkadot has in the past asserted that its talks with the SEC have been successful, although the regulator has not openly affirmed any such regulatory approval.
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