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Sweat Economy, a prominent web3 platform that converts physical activity into tokens, recently held an innovative governance proposal vote, empowering its community members to influence the project’s trajectory. The vote focused on the retrieval of dormant $SWEAT tokens stored in inactive user accounts, which represent about 2.5 billion tokens, or nearly 13% of the overall supply.
Typically, such tokens would be considered unrecoverable under standard conditions. However, thanks to a distinctive lockup contract that secured 90% of the tokens during the token generation event (TGE), Sweat Economy was able to reallocate these “abandoned” tokens.
Sweat Economy proposal unfolded in two steps
The proposal was executed in two phases, with the initial phase involving a vote on whether to reclaim the 2 billion idle SWEAT tokens and return them to the Sweat Treasury for possible future distribution or other specified uses. The community demonstrated significant engagement and involvement during this phase, with the vote receiving substantial backing.
Feedback from the community prior to the vote highlighted appreciation for the transparency of the proposal, emphasizing the excitement surrounding the potential application of over 2 billion $SWEAT tokens. The final results, released after the voting period, indicated that 83% of the 355,506 votes cast supported the reclamation of the idle tokens locked in inactive user accounts.
In response to the community’s choice, Sweat Economy will transfer approximately 2.4 billion SWEAT tokens from the TGE lockup contract to the governance treasury. These tokens will be retained in the governance treasury and will not be utilized until the second phase of the proposal is completed.
Looking forward, the next vote will suggest allocating the 2 billion tokens to the Sweat Economy’s US launch planned for September 2023. Further details will be shared in due time.
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CEO comments on the participation
Commenting on the impressive turnout for the governance vote, Oleg Fomenko, Co-founder of Sweat Economy, remarked,
With over 350,000 members participating in the governance vote, Sweat Economy has not only become the largest on-ramp in web3 history but is also transforming into the most extensive decentralized autonomous organization (DAO) with the goal of tokenizing YOUR physical activity and enhancing its value through the $SWEAT token.
The governance principle of Sweat Economy is based on one token holder equating to one vote, allowing all SWEAT token owners to impact the project’s direction.
During the execution of the vote, the technical team made updates to the lockup contracts, resulting in considerable traffic on the NEAR blockchain. Sweat Economy collaborated closely with the NEAR team to ensure mainnet stability.
The community’s robust engagement during the vote reflected an approximate 130% increase in participation compared to earlier governance votes. Sweat Economy attributed this rise to the importance of the SWEAT tokens involved, proactive promotion of the proposal through Discord AMA sessions, and enhanced user experience within the app.
For additional information regarding Sweat Economy and its governance initiatives, please visit here.
About Sweat Economy
Sweat Economy is a prominent web3 platform that aims to tokenize physical activity, rendering it valuable through the $SWEAT token. By motivating individuals to engage in various fitness activities, Sweat Economy aspires to transform the fitness industry and encourage a healthier lifestyle.
