Home Web internet Web3 Foundation Announces Polkadot Blockchain’s Native Token (DOT) Has Transformed and Is Software, Not Security

Web3 Foundation Announces Polkadot Blockchain’s Native Token (DOT) Has Transformed and Is Software, Not Security

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On its third anniversary of proactive engagement with the SEC, the Web3 Foundation today announces a historic step toward realizing Web 3.0, a decentralized, trustless, serverless Internet. The native blockchain token Polkadot (DOT), originally offered, sold and delivered to buyers as a security, has morphed and is no longer a security. It’s software.

ZUG, Switzerland — Web3 Foundation today announced a historic achievement toward the realization of Web 3.0: the native digital asset (DOT) of the Polkadot blockchain has transformed and is no longer a security. It’s software. This announcement marks the third anniversary of Web3 Foundation’s first engagement with the U.S. Securities and Exchange Commission’s (“SEC”) Financial Innovation Strategy Center (“FinHub”), in response to FinHub’s public invitations to projects related to digital assets to “come in and talk with us.” At the time, the Web3 Foundation was still six (6) months away from taking the initial step to launch the Polkadot Network in May 2020, and concluded with the launch of parachains in December 2021.

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In November 2019, the regulatory climate for digital assets was tense. When the Web3 Foundation first approached FinHub, the SEC had recently filed its lawsuit against Telegram, and FinHub’s Staff Framework for Analysis of Digital Assets “Investment Contracts” (the “Framework”) had was released a few months earlier, on the heels of numerous other SEC enforcement actions and announcements, including its 21A Investigative Report: The DAO (“the DAO Report”), the cease and desist Munchee and Kik decision.

Daniel Schoenberger, Legal Director of Web3 Foundation, said: “The framework suggested that almost all digital assets offered and sold for fundraising purposes, initially, were very likely to constitute security when delivered to buyers. initials. Yet the framework also contained a compliant path forward – a path that would allow a digital asset originally offered and sold as a security to be re-priced at a later date. For purposes of US federal securities laws, it may no longer be a security. In other words, digital assets could transform. »

Over the next three years, the Web3 Foundation’s experience was positive, as it met regularly with the SEC and attempted to innovate and comply with US federal securities laws, including offering and selling, marketing and delivering to first-time buyers of tokens as securities and dealing with retail buyers, generally in line with public companies.

November 2022 marks the third anniversary of our engagement with the SEC. For the past three years, we have met regularly with FinHub staff. In doing so, we have taken an approach to compliance that is similar to our approach to technical development: head down and dedicated, while setting the bar high. From the beginning, we have attempted to be innovative in our interactions with the SEC, complying with U.S. federal securities laws, including the offering and selling, marketing and delivery to initial purchasers of tokens as securities, and retail processing. acquirers, usually in line with public companies.

“According to the Web3 Foundation, current bids and sales of DOT, the native token of the Polkadot blockchain, are not securities transactions. DOT is used for the purposes for which it was designed – among other things, to tender and secure parachains and facilitate on-chain governance. Control of the Polkadot network has long been in the hands of DOT holders. Today, the DOT is not a security. It’s software,” Schoenönberger added.

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Disclaimer: Nothing in this press release is intended to be, and is not, the offer or sale of any digital asset or security. Similarly, nothing in this press release is intended to be, and is not, legal, investment or tax advice.

About Web 3.0

In 2014, Dr. Gavin Wood coined the term “Web 3.0” to describe a decentralized, trustless, serverless Internet where users control their own data, identity, and destiny. He presented this new vision because he believed that the current Internet infrastructure (i.e. Web 2.0) encouraged and facilitated the consolidation of power by a dominant group of for-profit entities, many of which played a key role in building this infrastructure. According to Dr. Wood, the Web 2.0 Internet has failed to meet basic human expectations for privacy and authenticity, and not by accident, but by design.

About the Web3 Foundation

The Web3 Foundation funds research and development teams that build the decentralized web technology stack, with the official mission of advancing the vision of Web 3.0. Web3 Foundation was established in Zug, Switzerland by Ethereum co-founder and former CTO Dr. Gavin Wood. For more information, visit web3.foundation.

About Polkadot

Polkadot provides the technical advancements needed to make blockchain technology practical, accessible, scalable, interoperable and scalable, removing limitations and barriers to entry, and thereby fueling innovation, expanding the decentralized technology space and bringing the Web3 vision.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20221104005556/en/

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