Sweat Economy DAO votes to repurpose $10M of idle tokens
Move-to-earn platform Sweat Economy is set to repurpose over 2 billion native Sweatcoin tokens that were locked up in inactive user wallets.
The tokens, valued at around $10 million, were locked up in dormant user accounts following a token airdrop event in September 2022. According to the platform, Sweatcoin (SWEAT) users that opted into the Web3 move-to-earn’s crypto offering received SWEAT tokens that were locked for 24 months in a 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 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% 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 United States platform launch, 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-tokenholder-equals-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 tokenholders in proportion to their holdings.”
The Sweatcoin Web2 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.
Move-to-earn is an evolution of play-to-earn games, which have thrived on a variety of blockchain networks.
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