Interesting dream. Have you seen the ouroboros or uroboros symbol? With the tail and the circle (ring) might relate to what some would say transformation. However worm according to dream sources are the lowest of the food chain and if that is the case it is something that is bugging you - or - something that you might not stomach - or eating away at you. You might be trying to kill this off but aware of how to do so. Or maybe this is just a dream from the movie Matrix.

My Blog:
Dream Dictionary - Dream Analysis, Interpretation & Meaning