Chainalysis Proposes $10 Million Partnership with Polkadot to Offer On-chain Analytics Solutions Amidst Limited Early Support

According to CryptoSlate: Chainalysis has put forward a Polkadot governance proposal on April 18, potentially leading to a $10 million collaboration. Under this proposed partnership, Chainalysis will provide services such as monitoring and tracing DOT token activities on the Relay Chain, and ensuring visibility of potentially risky on-chain actions for regulators and institutional entities. The main focus is to upkeep a strong standing with regulatory authorities while cultivating a risk-aware setting. Moreover, Chainalysis will provide on-chain intelligence solutions to cater to the needs of institutions related to the listing of the DOT token, incorporating aspects like investigations, compliance, and usage growth scenarios. The collaboration also implies joint initiatives to promote and highlight the partnership and Chainalysis's contribution to Polkadot's compliance framework. Chainalysis's proposal solicits 1,000,000 of Polkadot's DOT tokens or an equivalent value in USD (approximately $6.82 million as of now) for a three-year contract. However, the proposal appears to have garnered only scant support from the Pokadot community thus far. Despite this, the proposal, if successful, promises significant advantages like enhancing market capitalization, market share, adoption, institutional popularity alongside averting fines and reputation damage deriving from regulatory concerns. The deadline for voting ends on May 16.