Sweat Economy DAO recently hosted a voting process to decide the fate of over 2 billion native $SWEAT tokens that were locked up in inactive user wallets, valued at around $10 million. The tokens were locked in dormant accounts following a token airdrop event in September 2022. Users that failed to install the Sweat Wallet and claim their locked tokens left a significant portion of the ecosystem’s token supply frozen in inactive accounts. However, Sweat Economy’s foundation controls the keys to the lockup contract responsible for the token generation event, which facilitated the platform’s ability to repurpose the tokens that would have otherwise been abandoned and unrecoverable.
The decentralized autonomous organization (DAO) voting process concluded between June 7 and 14, with 83% of the over 355,000 voters supporting the reclamation of idle tokens. Sweat Economy will now transfer an estimated 2.4 billion tokens from the lockup contract to its governance treasury contract. The foundation aims to propose a new community vote, allocating the recovered tokens to its U.S. platform launch lined up for September 2023.
A representative of Sweat Economy affirmed that the platform’s principle of community-centric decision making is built on a one-token-holder = one-vote rule. Consequently, the wider community will ultimately determine how the platform utilizes and repurposes the reacquired tokens valued at $10 million.
This groundbreaking change within the industry illustrates a shift in power dynamic, as most projects tend to allocate more power to token holders in proportion to their holdings. The Sweat Economy case poses an interesting discussion as it involves the reclamation and repurposing of funds from idle accounts that presumably would never have seen the light of day. These idle tokens being put back into the ecosystem could be met with criticism or support as the community decides their fate.
Source: Cointelegraph
