Chainalysis proposes $10 million Polkadot partnership to provide analytics solutions Chainalysis proposes $10 million Polkadot partnership to provide analytics solutions
The services provided by Chainalysis will include monitoring and tracing the DOT token activities on the Relay Chain, ensuring visibility of any potentially risky on-chain actions.
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Updated: Apr. 20, 2024 at 12:17 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Chanalysis submitted a Polkadot governance proposal on April 18 that could lead to a $10 million partnership.
The services provided by Chainalysis will include monitoring and tracing the DOT token activities on the Relay Chain, ensuring visibility of any potentially risky on-chain actions to regulators and institutional entities. This approach is aimed at maintaining a good standing with regulatory bodies and fostering a risk-aware environment.
Furthermore, Chainalysis will offer on-chain intelligence solutions to meet institutional requirements related to the listing of the DOT token, covering aspects such as investigations, compliance, and growth use cases.
The partnership would also include plans to engage in joint events, announcements, and case studies to promote the collaboration and highlight Chainalysis’s role in supporting Polkadot’s compliance framework.
The partnership would additionally offer on-chain intelligence to authorized institutional clients to support DOT token listings. The two companies would also collaborate in various areas to promote the compliance partnership.
Little early support
Chainalysis’ proposal requests 1,000,000 of Polkadot’s DOT tokens or the equivalent value in US dollars (currently $6.82 million) for a three-year agreement. Chainalysis proposed the plan and will be the beneficiary if the plan succeeds.
So far, the proposal has received little support from members of the Pokadot community. A Polkadot ambassador with the handle Georgi_PS initially funded the proposal with a 400 DOT deposit. Since then, 11 voters have used 36,350 DOT to vote against the plan.
If the proposal succeeds, it could provide particular benefits. The proposal states that the Polkadot community aims to use Chainalysis software to improve market capitalization, market share, adoption, and popularity among institutions. It would also prevent fines and reputational damage resulting from regulatory issues.
Voting is scheduled to conclude by a May 16 deadline.
Disclaimer: CryptoSlate has received a grant from the Polkadot Foundation to produce content about the Polkadot ecosystem. While the Foundation supports our coverage, we maintain full editorial independence and control over the content we publish.
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Mike Dalton
Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada's West Coast.
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