Web3 Foundation, a non-governmental organization based in Zug, Switzerland, has released an announcement that they have realized that the Polkadot Native Token (DOT) is only software and not security because it has been transformed.

His view is consistent with that of the US Securities and Exchange Commission (SEC).

In a recent press release by Web3 Foundation Legal Director Daniel Schoenberger, the staff of the U.S. SEC’s Strategic Center for Financial Technology and Innovation (FinHub) published a framework for investment contracts for analyze digital assets.

The framework suggested that almost all digital assets sold for the purpose of raising funds were initially intended to be a security in the hands of the initial purchaser.

However, the framework also suggested that there are also factors that could give rise to complaints, for example a complaint that exists when the initially offered digital assets are sold as a security and revalued at a later date. Therefore, this security no longer exists under federal security laws in the US because it has been transformed.

Daniel also highlighted that three years have passed since the interaction between the Web3 Foundation and the SEC. He reiterated that his discussions have been positive and have generated a deeper understanding of the issues raised by the SEC as they seek solutions to address their concerns.

The Web3 Foundation has also developed a viable theory on how token transformation can be adopted for decentralized projects like Polkadot and other digital assets because apart from being offered for fundraising purposes, it lacks security-like properties.

Polkadot Launch

Polkadot was developed in 2016. Polkadot is a representation of the vision of the founder of the Web3 Foundation, Dr. Gavin Wood, to develop a decentralized Internet known as Web3.

Polkadot is a sharded blockchain, meaning it connects multiple chains into a single network, allowing them to process and exchange data in parallel while maintaining strong cross-chain security guarantees. By parallelizing workload, Polkadot addresses major issues that have previously been mitigated by decentralized application development.

In an attempt to delve deeper into the digital education sector, Polkadot recently partnered with edX to promote educational courses.

The course outline covers the fundamentals of blockchain technology and Polkadot, as well as the Substrate blockchain framework and the Rust programming language. Users can try the courses for free without prior knowledge or experience.

Image Source: Shutterstock