The Sweat Economy platform is ready to reuse more than 2 billion native $SWEAT tokens that were locked in inactive user wallets.
The tokens, valued at about $10 billion, were locked in inactive user accounts following a token launch event in September 2022.. According to the platform, Sweatcoin users who opted into Web3’s move-to-earn cryptocurrency offering received $SWEAT tokens that were locked in a 24-month lock contract.
Users who did not install the Sweat Wallet over the past year and claimed the locked tokens essentially left a sizable chunk of the ecosystem’s token supply frozen in inactive accounts.
The Sweat Economy foundation controls the keys to the lock contract responsible for the token generation event, allowing the platform to reuse tokens that would otherwise have been “abandoned” and unrecoverable.
Sweat Economy users were invited to participate in a decentralized autonomous organization (DAO) voting process to decide the fate of locked $SWEAT tokens. Users could choose to recover the 2 billion tokens, transfer them and potentially reuse them in the future, or leave them unrecovered in their respective inactive accounts.
According to the platform, more than 355,000 users voted between June 7 and 14, with 83% of voters supporting the recovery of dormant tokens. Sweat Economy will transfer some 2.4 billion tokens from the block contract to its governance treasury contract.
The foundation intends to propose a new community vote to allocate the recovered tokens to its launched US platform scheduled for September 2023.
A Sweat Economy spokesperson told Cointelegraph that the principle of the community-centric decision-making platform is based on a one token holder = one vote rule. The community at large will ultimately decide how the platform uses or reuses the $10 million in repurchased tokens:
“This is a remarkable and innovative 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 per activity, with 4,033.93 steps generating 1 $SWEAT token. The app imposes a limit of 5,000 steps.
Move-to-earn is an evolution of the play-to-earn games that have thrived in a variety of blockchain networks.
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