Sweat Economy Reusing 2 Billion $SWEAT Tokens
The Move-to-earn platform Sweat Economy is planning to reuse more than 2 billion $SWEAT tokens that were stored in user wallets that have not been active. Approximately $10 billion worth of tokens were frozen in inactive user accounts following a token airdrop event in September 2022. Sweatcoin users who chose to take part in Web3’s move-to-earn crypto initiative were given $SWEAT tokens that were subject to a 24-month lock-up agreement.
Over the past year, users who failed to install the Sweat Wallet and claim locked tokens resulted in a large part of the token supply of the ecosystem being left in inactive accounts.
The Sweat Economy’s foundation holds the keys to the lockup contract which is responsible for the token generation event, enabling the platform to reuse tokens that would have been otherwise lost and unrecoverable.
Sweat Economy users were invited to participate in a decentralized autonomous organization (DAO) voting process to determine the future of the frozen $SWEAT tokens. They had the option to retrieve the 2 billion tokens, transfer them, and potentially reuse them in the future, or leave them unrecovered in the respective inactive accounts.
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According to the platform, a total of 355,000 users participated in the voting process between June 7 and 14, with the majority (83%) in favor of reclaiming the idle tokens. Sweat Economy will be transferring an estimated 2.4 billion tokens from its lockup contract to its governance treasury contract.
The foundation is aiming to put forth a new community vote to apportion the recovered tokens to its U.S. platform, which is scheduled to be launched on September 2023.
A representative from Sweat Economy informed Cointelegraph that the platform’s principle of community-based decision making is based on the idea that each token holder has one vote. Ultimately, the broader community will determine how the platform utilizes or repurposes the $10 million of tokens that have been reacquired.
The Sweatcoin web1 and web3 mobile app tracks users’ daily step count and provides a reward of $SWEAT tokens for their activity, with 4,033.93 steps resulting in 1 $SWEAT token. The app has an upper limit of 5,000 steps.
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