The move-to-earn platform had 2 billion $SWEAT tokens locked up in inactive user accounts which the community has voted to be returned to a governance contract.
Move-to-earn platform Sweat Economy is set to repurpose over 2 billion native $SWEAT tokens that were locked up in inactive user wallets.
The tokens, valued at around $10 billion, were locked up in dormant user accounts following a token airdrop event in Sep. 2022. According to the platform, Sweatcoin users that opted into the Web3 move-to-earn’s crypto offering received $SWEAT tokens that were locked up in a 24-month lock-up contract.
Users that failed to install the Sweat Wallet over the past year and claim locked tokens essentially left a sizable portion of the ecosystem’s token supply frozen in inactive accounts.
Sweat Economy’s foundation controls the keys to the lockup contract responsible for the token generation event, allowing for the platform to repurpose the tokens that otherwise would have been ‘abandoned’ and unrecoverable.
Sweat Economy users were invited to take part in a decentralized autonomous organization (DAO) voting process to decide the fate of the locked $SWEAT tokens. Users could opt to have the 2 billion tokens recovered, transferred and potentially repurposed in the future or leave them unrecovered in respective inactive accounts.
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According to the platform, over 355,000 users voted between June 7 and 14, with 83 percent of voters supporting the reclamation of idle tokens. Sweat Economy will transfer an estimated 2.4 billion tokens from the lockup contract to its governance treasury contract.
The foundation intends to propose a new community vote to allocate the recovered tokens to its U.S. platform launched earmarked for September 2023.
A spokesperson from Sweat Economy told Cointelegraph that the platform’s principle of community-centric decision making is founded on a one token holder = one vote rule. The wider community will ultimately decide how the platform uses or repurposes the $10 million worth of reacquired tokens:
“It is a notable and groundbreaking change in the industry as most projects give power to token holders in proportion to their holdings.”
The Sweatcoin web1 and web3 mobile app records users daily step count and rewards $SWEAT tokens for activity, with 4,033.93 steps generating 1 $SWEAT token. The app enforces a cap of 5,000 steps.
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