Mobile earning platform Sweat Economy will repurpose over 2 billion native Sweatcoin tokens locked in inactive user wallets.
After the token airdrop event in September 2022, these tokens, worth about $10 million, were locked in dormant user accounts. According to the platform, Sweatcoin (SWEAT) users who opted-in to the Web3 mobile earning crypto product received SWEAT tokens locked in the contract for 24 months. Users who failed to install a Sweat wallet for the past year and claimed to have locked their tokens essentially had a significant portion of the ecosystem's token supply frozen in inactive accounts.
Sweat Economy's foundation controls the keys to the locking contract responsible for token generation events, allowing the platform to repurpose tokens that would otherwise be “abandoned” and irrecoverable.
Sweat Economy users are invited to participate in a decentralized autonomous organization voting process to decide the fate of locked SWEAT tokens. Users can choose to have these 2 billion tokens be withdrawn, transferred and possibly repurposed in the future, or have them remain unre covered in their respective inactive accounts.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 recycling idle tokens. Sweat Economy will transfer approximately 2.4 billion tokens from the lock contract to its g overnance treasury contract.
The foundation intends to propose a new community vote to allocate recovered tokens to the platform, which is scheduled to launch in the United States in September 2023.
A spokesperson for Sweat Economy told Cointelegraph that the platform's community-focused decision-making principles are based on the rule that one token holder equals one vote. The broader community will ultimately decide how the platform uses or repurposes the $10 mill ion worth of reacquired tokens: “This is a notable and ground breaking change for the industry, as most projects empower token holders in proportion to their holdings.”
The Sweatcoin Web2 and Web3 mobile app records the user's daily steps and rewards active SWEAT tokens, 4,033.93 steps generate 1 SWEAT token. The app enforces a cap of 5,000 steps. Move-to-earn is the evolution of play-to-earn games that thrive on various blockchain networks.
