Hi everyone - we have been working on preparing a proposal for the treasury. We are posting the relevant draft here on the Forum with the goal of getting feedback.
Thank you!
Context of the proposal:
In earlier phases of Web3 - namely 2017 and 2018 - there was extensive debate about the legal nature of tokens and the process for getting those tokens acknowledged by regulatory bodies such as the SEC. Amidst the frenzy of the latest bull run, those debates have somewhat subsided. In a post-FTX market, with even more scrutinous regulatory eyes fixed upon crypto, those debates and the need for best practices for undergoing regulatory recognition have reemerged as even more critical pieces of knowledge for web3 builders. In this environment, Polkadot’s efforts and ultimate success in the regulatory arena warrant study and dissemination to the wider web3 community. It is in this spirit that we submit our grant request to the treasury
We have already had informal discussions with the individuals most involved in the DOT related regulatory process, who all expressed initial interest in contributing to the initiative. Given this, we feel confident in our ability to fully develop our research themes.
The professionals we spoke with who manifested in general terms willingness to support the initiative are:
-
Joshua Ashley Klayman
-
Angela Dalton
-
Chrissy Hill
-
Daniel Schoenberger
We applied at the w3f grant program and were guided to approach the on-chain treasury due to the legal nature of the research.
Problem statement:
- Web3 regulatory matters are complicated. Each project must obtain proper legal advice, but at the same time, there is no single, up-to-date reference point that they can rely upon for this process. These complexities and unknowns are one of the factors slowing the growth of Web3.
- Regulatory topics are often discussed through a technical lens. There is a significant lack of content oriented towards non-technical stakeholders.
- There is no easy-to-understand documentation of Polkadot’s unique process and outcomes achieved over the last three years of dialogue with the SEC.
Proposal Objective/solution/s to point 2:
We aim to produce a Research paper regarding the SEC DOT regulatory process, outcomes and recommendations for Dotsama and the wider Web3 ecosystem
Research will be conducted along the following themes:
- The SEC no-action letter: What is it, when is it necessary, when is it not and what are the current trends?
- Comprehensive analysis of key case studies between 2017-2022.
- Token morphism: concepts and examples.
- Polkadot case study: lessons learned from Polkadot’s process and dialogue with the SEC.
- Best practices regarding token issuance.
- Elucidation of applicable (and non-applicable) use cases of token morphism within Web3.
- If feasible, a Parachain-oriented token issuance blueprint.
- A set of findings relevant to the broader Web3 industry.
- A brief comparative analysis of the US’ and civil law countries’ crypto regulatory frameworks.
Following research methods will be employed
- Interview and dialogue with the actors who, on behalf of Polkadot, engaged in the conversation with the SEC, including Joshua Ashley Klayman, Angela Dalton, Daniel Schoenberger, and Peter Mauric.
- Interview individuals having direct experience in token regulation in the US.
- A brief review of the relevant literature.
- Agnostic method: the research will not take a position about how Web3 should or should not be regulated. Its aim is solely to share the process and outcomes of Polkadot’s US regulatory journey.
- Educational approach: the research will be aided by diagrams and visuals to make the topics comprehensible to a wide, non-technical audience.
- Divergent opinions welcome: We will include a wide variety of opinions in order to provide consumers of our research with the maximum number of useful approaches.
How does this proposal change the network? How do the milestones of the project achieve the ultimate goal? List the solution and milestones to reach your goal.
Our research aims to explore the concept of token morphism and then create accessible, actionable content geared towards web3 builders - legally minded and non-legally minded alike - who have an urgent need to understand this important but somewhat esoteric topic. While the resulting content will not constitute legal advice, it will contain clear, actionable recommendations that will be relevant for many Web3 projects.
Who does this solution help?.
An in-depth study of Polkadot’s regulatory journey and success along with some key, ecosystem agnostic concepts which are as yet not well / widely understood, will help the Dotsama ecosystem learn from itself while also providing valuable guidance to the broader web3 space.
Milestones and tasks to include:
Milestone 1 - Literature Review, Data Collection and First Draft (2 months, 7388.37 DOT)
- Run an internal research and documentation process, in order to prepare the interviews.
- Conduct first round of interviews with relevant stakeholders.
- Prepare and release an internal draft of the paper along with an inline documentation of the method and process used for the research under a CC0 License.
Milestone 2 - Feedback and Publication (2 months, 7388.37 DOT)
- Absorb abd iterate relevant comment received, offering room for divergent opinions eventually submitted.
- Publish the final paper which is easily and publicly accessible to non-technical readers along with an inline documentation of the method and process used for the research under a CC0 License.
- Run one public presentation on our findings with Web3 foundation, Parity and wherever possible, through and with other industry communication channels.
Why Polkadot Network? Why did you choose to build in Polkadot? What is it about this network that encourages you to submit this proposal? If you have seen similar proposals before: why is yours different?
We are not aware of the existence of any other research project covering the same topics this research aims to address.
Team
Team Leader
- Raffaele Battaglini, LL.M.
Team Members
- Dr. Alessandro Palombo
- Davide Paoli, LL.M. - MBA
- Luigi Cantisani, LL.M.
- Selen Ekinci, LL.M.
- Will Sauer
Ad hoc subject matter experts etc.
- We expect to engage a variety of subject matter experts on an ad hoc basis. The specific individuals to be engaged will be determined as the research progresses and therefore they cannot yet be enumerated. However, the budget as currently presented includes the costs for these experts.
Contact
Contact Name: Raffaele Battaglini
Contact Email: raffaele@jur.io
Website: www.jur.io
Team Experience
Founder of Futura Law Firm S.t.a.r.l. S.B., he acts as legal advisor to Jur since its inception. A lawyer registered with the Turin Bar since 2009, he deals with extraordinary transactions and commercial contracts with a particular focus on the world of start-ups and new technologies. In 2006 he obtained an LL.M. in Innovation, Technology and the Law from the University of Edinburgh. Author and speaker, in Italy and abroad, of books, articles and conferences on technological issues such as blockchain, smart contracts, cryptocurrencies, Initial Coin Offerings, artificial intelligence, legaltech, Industry 4.0, 3D printing. Co-Organiser of Legal Hackers Torino, the first Italian chapter of the global Legal Hackers community. Raffaele is co-editor and co-author of the book “Blockchain and Smart Contracts” published by Giuffrè Francis Lefebvre in 2019 and co-author of “Smart Legal Contracts” published by Giuffrè Francis Lefebvre in 2021 and assisted several projects in regulatory matters across multiple jurisdictions.
Founder of Paoli Legal FZE, Davide Paoli was the Head of the Corporate and Criminal Corporate Law Department at Bin Haider Advocates & Legal Consultants. Davide is a specialist in cross-border corporate transactions and international IP law and has an extensive experience in criminal proceedings in Italy, UAE and the United States. His firm handles a portfolio of clients in the aviation/space, energy, advertising, automotive, sports, food, amusement parks, shipping, fashion, and luxury retail and trading industries. Fluent in Italian, English, German, and French, with a working knowledge of Arabic, Davide has extensive experience in the Middle East, both in the United Arab Emirates, Egypt and Lebanon. He was the Founding Member and Managing Director of Eptalex Dubai. His key areas of practice include white collar crime, extradition procedures, corporate and commercial, intellectual property, media and entertainment, insurance and reinsurance, legal tech and blockchain projects, and aviation and space law. He is a member of several international law bar associations.
Jur Founder, in Web3 since 2017, actively involved in the relationship with FINMA for obtaining a non-action letter. Prior to his transition into entrepreneurship, Alessandro became admitted to practice law in Italy, earned a Masters in Global Regulation of Markets (Sapienza and Lateranensis University) and a Ph.D. in Administrative Law (Sapienza University). He also gained direct experience in regulatory matters serving as Scientific Committee Member of San Marino Innovation, supporting the creation of the national legislation for token issuance. He also advised Oxford University’s Deep Tech Dispute Resolution Lab on topics across Web3 and dispute resolution. Alessandro will be focused on supporting the research with his direct experience regarding Jur and ensuring that the deliverables will be easy-to understand for other Web3 teams.
Lawyer at Futura Law Firm S.t.a.r.l. S.B. acting as legal engineer at Jur. A lawyer registered with the Turin Bar since 2019, he mainly deals with national and international contracts and corporate transactions, with a focus on the new technology sector. He carries out legal engineering activities for tech companies for the design of digital platforms and legal tech applications, in particular in the ODR sector. He holds an LL.M. in International Trade Law from the United Nations ITC-ILO campus and a Ph.D. from the University of Warwick. Lecturer at Italian and foreign universities and author of publications on smart contracts, contract law and ODR.
Lawyer at Futura Law Firm S.t.a.r.l. S.B. Currently enrolled in the Istanbul Bar Association. Graduated with honours from Yeditepe University in Istanbul, and graduated with LL.M in Comparative Law, Economics and Finance from International University College of Turin and University of Turin. She is pursuing a master’s degree in Entrepreneurship and Innovation at the University of Padua. Its legal field is private international law, in particular contract law.
Will Sauer is a technically-grounded operations leader with a proven track record across the startup and venture ecosystem. Most recently he spent 3 years as a back-end software engineer. Prior to that he ran Finance and Operations at a Series A / B startup in San Francisco and worked for several alternative investment funds.
Payment conditions: please specify any special conditions regarding the payment of this proposal.
Please include here:
- What is the amount requested? Should this be divided on installments? Will each milestone represent a treasury submission?
The amount requested is 14776.74 DOT, delivered in two installments of 7388.37 DOT each, corresponding with the delivery of each milestone and separate treasury submissions. While our work includes an intermediate milestone, it will not be considered as a separate treasury submission given it will be a draft for public commentary.
- How does this amount cover the work of the proposal? What tasks are to be included on the payment? Please allocate parts of the total request to the milestones explained above.
Milestone I: Will be completed with the publication of a public draft for comments 7388.37 DOT
Milestone II: Will be completed with the delivery of a final paper and presentation. 7388.37 DOT
- Treasury timeline related to milestones: when are installments (if any) due
The first installment is due upon delivery of the public draft for comments and the completion of milestone 1.
The second installment is due upon delivery of the final paper and presentation for the completion of milestone 1.
- What is the address of the fund recipient?
To be added at the moment of proposal submission
- How can we contact the manager of the funds?
To be added at the moment of proposal submission
- What exchange rate are you considering and why?
We considered as an exchange rate 1 DOT = $6.226 - the average price between Aug 2022 and today, February 6th?.
Source: Polkadot Historical Data - Investing.com India
- Budget details.
1. Where senior is defined as professional with 15+ years experience and direct web3 legal knowledge e.g. LLMs or Ph.D.'s, and founding partners.
2. Representative of US market rate, intended for engaging individuals connected with SEC and other US regulatory bodies.
3. Representative of EU / MENA-based activities where the majority of work will take place.
Notes:
Project will be comprised of a mix of scientific and interview-based research with external subject matter experts and the broader web3 community. Accordingly, the tempo and volume of the work will depend on logistical and personnel factors not fully within our control.
These rates and hours represent our best effort estimation of the total cost of the project but should not be construed as a definitive calculation of the ultimate total cost of the project.
If the ultimate total cost of the project should exceed this estimate, there is a possibility that we may submit a second proposal to cover the additional expenses incurred. Alternatively, we would be happy to receive this balance as a tip upon completion of the project.
Comments, Qs&As: Include here any public relevant information, questions and the respective answers covered on any of the communications channels pertinent to this proposal up to date.
Disclaimers
- The research is in no way a substitute for legal advice
- The research may have a negative or partially negative outcome, in the unlikely event that shared best practices cannot be gathered
We’d love to hear about how you got to know about the Polkadot on-chain treasury: let us know, in a few sentences, how did you become familiar with the spending mechanism and the on-chain treasury?