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The new governance requires at least 75,000 votes for the proposal to be either accepted or rejected.
Sweat Economy, the label behind the Sweatcoin and Sweat Wallet apps, plans to roll out a new governance vote later today in the wallet app. By doing this, the Sweat community will be saddled with the responsibility of deciding what happens to the 2 billion Sweat tokens lying idle in inactive users’ accounts.
Token holders can now participate in the decision-making process by the principle of one man, one vote, thereby democratizing the token’s future. The question of what should be done with the tokens has lingered for a very long time especially after no response was gotten following repeated prompts and reminders to users to activate their apps and claim their tokens.
It is worth noting that the volume of tokens involved in this case makes the governance vote a crucial one. However, the project will still have to make sure that the voices of all its community members and token holders are heard, not considering the size of the holding. This is because the Sweat Economy is pushing to promote its commitment to making the decision-making process community-centric.
In September last year, Sweat Economy distributed about 4.7 billion of its Sweat tokens to 13.5M of its Sweatcoin users at the time. This happened about two weeks before the Move-to-Earn project bagged a crypto custody partnership deal with London-based decentralized digital asset management infrastructure Qredo. It turned out to be that a significant number of users did not activate their Wallet apps after the token generation and distribution.
Owing to this, up to 2 billion tokens were left unclaimed and locked up in a 24-month contract in inactive user accounts, representing approximately 13% of the total supply of the Sweat token.
Sweat Economy Governance: Vote For or Against?
The new governance requires at least 75,000 votes for the proposal to be either accepted or rejected. There is every likelihood that the volume of votes will exceed 75,000 as the previous vote attracted way over 150,000 participants. The Sweat Economy is even more positive about this possibility considering the bulk of Sweat tokens involved.
The two options to be voted for or against are whether the 2 billion idle SWEAT tokens should be recovered and transferred back to the Sweat Treasury for maybe a potential future distribution or other uses that would also be decided via another round of votes, or the tokens should remain in the inactive users’ accounts.
Every token holder has a fair chance of making their vote count and the polls will run for up to 7 days with the possibility of a 3-day extension depending on the influx of votes. So far, Sweat Economy has received feedback from holders indicating that the governance vote is a welcomed development.
On one hand, the Sweat Economy is preparing for its launch in the United States this September. This will facilitate Sweat Wallet installation among US residents. At the same time, existing users of the Sweatcoin app will receive their SWEAT token allocations in direct proportion to their current Sweatcoin stake.