I’m not sure if it is a bug or a expected behavior, but when you edit a model that you published/bought and open the block menu, it only shows the block pallete from the model.
version 0.2.1
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When you import a model into your Blokoto World, its palette becomes unchangeable. This is because models in the game save only the specific blocks they use, creating a static palette during the saving process.
Currently, this means you can’t edit the palette of an imported model. However, in upcoming updates, you’ll have more flexibility: You’ll be able to either replace the model’s blocks with ones from your world’s palette or merge the model’s blocks into your world palette. By doing this, the model will use your editable world palette, giving you more control over its customization.
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Or in other words, it means possibly the player could afford to change completely the material palette from a whole model? I mean to change something like the entire part of a model where it got an unique material into everything used on that item layer.
Exemplyfing better, when i got a Super Mario model, and his entire clothing color is red, and for some reason i want to change into blue, and basicly recoloring the red to blue will change only blocks that were red before?
Yes, this is a design choice to ensure that games constrain the materials of purchased models to their own game palette, maintaining a consistent appearance throughout.
What a very nice feature, and also an extremely good time saver at all, of course.
Its possible to steal and sell a model by changing its pallete, as @ODelicioTron3000 said. To do this, you need to put the model that you purchased and then rejoin the game. Now you’ll able to change the pallete.
Kinda buggy, because if you save it and then place the saved model, it will appear the original model.
Btw, please delete/unlist this copied model.
Edit: I checked the bug of saving to inventory and selling it again. I think it’s a bug caused by rejoining the game, which might result in losing the model’s ownership.
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This will be fixed in future versions, models are highly unstable right now. I recommend creating a new topic on Bug Tracking for proper report attribution in the future.
I believe that kind of issue can be easily solved soon by blocking the selling choice into a bought model from the game market, so nobody could ever sell twice the same model with no greater changes on its entirely main parts.
However, even having this feature, in the case of some kind of naughty player really wants to fool other people, so he would build everything from the scratch to reach his stupid goal, but before it get real, maybe when copying such a complicated model can make him give it up thanks to his lazy on doing that. 
In certain way, maybe people could forget to do these stupid things in order to bother players, because of the hardness in must have to build from absolute zero, i really don’t know, but i’ll leave an thought to think about situations like this.
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I want to add a system where people can flag the model as a copycat and show a red banner in the model saying that it was copied/based on another one. This system will not be able to be abused, since the original model should be older than the copied one and the community can drop the banner by saying it is not accurate.