The community behind Polkadot has reportedly planned to conduct a study meant to be focused on token morphism.
Token morphism is a word used to mark out the process behind the transformation of the native dot token of Polkadot, when it changed from a security into a piece of software. In November 2022, Polkadot shared the first news of the achievement of token morphism. According to the protocol, the process resulted directly from the three-year dialogue with the United States’ SEC (Securities and Exchange Commission). Currently, Polkadot considers investing in research to explore how the token morphism process was created, as stated by a post from the governance forum of the protocol.
The study is thought to provide a framework for token morphism for the protocol and other crypto projects, as was indicated by the proposal. The plans for research come during increased scrutiny from regulators such as the SEC, which includes the actions taken against Paxos, the stablecoin issuer and Kraken, the crypto exchange, both of which were investigated in February 2023. This has instilled fear in the crypto ecosystem of the United States regarding sweeping enforcement actions.
Polkadot’s proposal made a request for USD 90k worth of dot tokens deemed necessary for the research sponsorship. According to the protocol, the funding would be sufficient for the team’s work, which will include crypto experts who participated in the initial talks with the SEC. Polkadot requested that the funds should be delivered in two separate instalments of 7,388.37 dots.
