Polkadot Developer Calls DOT Not Sekuritas, This Is The Reason!

Polkadot is claimed to be software and not securities. (Photo; Crypto Tendencia)

JAKARTA - Polkadot (DOT) is the 14th largest cryptocurrency by market cap. Recently, the entity responsible for the development of Polkadot, Web3 Foundation (W3F) claimed that DOT crypto is not a security.

The Web3 Foundation also describes the reason. They believe US regulators, the Securities and Exchange Commission (SEC) will approve the claim. The DOT developer referred to a report released by the SEC in 2017, namely Report 21A, also known as the DAO Report (Decentralize Autonomous Organization).

In the report, the SEC outlined that most DAO tokens including Polkadot, should be considered securities. Furthermore, the information in the report also reveals steps to render their crypto projects unfuncted as securities, if desired.

In this case, the Web3 Foundation stated that the DOT is not included in the criteria for securities. They hope the SEC conducts a review of this matter.

Non-Security Software

The Web3 Foundation, in a Twitter thread, states that since the launch of the Polkadot network, they have no intention of issuing security tokens. They rate DOT as software or software.

The Chief Legal Officer of the Web3 Foundation, Daniel Schoenberger, stated that DOT is meant to serve as a Layer-1 blockchain aimed at other companies.

"While considering the launch of the Polkadot network, there is no intention of issuing securities. We always consider DOT as a vertical & agnostic agnostic coordination software for use."

However, the DOT development team acknowledged that this project may be aimed at financial use and confirmed that it had taken steps to improve this view.

The original 1/token' of Polkadot, DOT, is, and has always been, a coordinating software. Following W3F's announcement of changing DOT to non-security, read the thread below to learn how DOTs can change, what Polkadot is, and the main goal of the network," wrote the Web3 Foundation announcement (@Web3foundation) in a Twitter thread, January 26, 2023.

SEC Meetings and W3F Steps

The DOT development team, W3F, has repeatedly held meetings with the US Securities and Exchange Commission (SEC) since the launch of the Polkadot whitepaper. The meeting is aimed at assessing the potential progress of project revocation and DOT status from the securities category.

The W3F has taken three main steps to achieve this goal, such as focusing on developing Polkadot technology and others, as reported by CryptoPotato.

The W3F focuses on Polkadot technology in each of its ads, not on the token itself.

Restrictions on the number of published DOTs are applied to ensure fair sound and governance.

The final and most important step is that W3F refuses to sell DOT to hedge funds and venture capitalists interested in assets as pure fiduciary investments.

With that, the W3F team believes that Polkadot has "varying" into software and requested a review by the Securities and Exchange Commission (SEC). If the SEC agrees, that means the DOT will no longer be set up with the same standards as the cryptocurrency used as a store of value.