Sweat Economy, a move-to-earn platform, is repurposing over 2 billion $SWEAT tokens, valued at around $10 billion, that were locked up in inactive user wallets. These tokens were locked up in dormant user accounts following a token airdrop event in September 2022. Sweatcoin users who 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 who failed to install the Sweat Wallet over the past year and claim locked tokens left a significant 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 participated in a decentralized autonomous organization (DAO) voting process to determine the fate of the locked $SWEAT tokens. Users could choose to have the 2 billion tokens recovered, transferred, and potentially repurposed in the future or leave them unrecovered in respective inactive accounts.
Community-Centric Decision Making
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 plans to propose a new community vote to allocate the recovered tokens to its U.S. platform launched earmarked for September 2023.
According to a spokesperson from Sweat Economy, 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.
Sweatcoin is a web1 and web3 mobile app that records users’ daily step count and rewards $SWEAT tokens for activity. The app enforces a cap of 5,000 steps, with 4,033.93 steps generating 1 $SWEAT token. Move-to-earn is an evolution of play-to-earn games that have thrived on a variety of blockchain networks.
Sweat Economy is unlocking $10 billion worth of native tokens that were locked up in inactive user wallets. Users who failed to install the Sweat Wallet and claim locked tokens left a considerable portion of the ecosystem’s token supply frozen in inactive accounts. Sweat Economy users participated in a DAO voting process to determine the fate of the locked $SWEAT tokens, with 83% of voters supporting their reclamation. The wider community will ultimately decide how Sweat Economy uses or repurposes the $10 million worth of reacquired tokens.