Sweat Economy, a pioneering project in the Web3 space, recently carried out the largest governance vote in the history of the decentralized web. The proposal at hand involved the recovery of a significant number of idle $SWEAT tokens that were locked up in inactive user accounts. Approximately 2.5 billion $SWEAT tokens, accounting for roughly 13% of the total supply, were allocated to these dormant accounts, with no conventional means for the project and community to access them.
However, due to a unique circumstance, 90% of the tokens were placed in a lockup contract that would gradually unlock the remaining tokens over a 24-month period. The foundation held the keys to this contract, presenting an opportunity to repurpose these seemingly abandoned tokens. The governance proposal outlined a two-step approach to address this situation.
Sweat Economy Community Makes Their Voices Heard
In the recently concluded first step, the Sweat Economy community showcased remarkable participation, with 355,506 votes recorded from June 7th, 2023, at 1 PM UTC to June 14th, 2023, at 1 PM UTC. The results of the vote revealed that 83% of voters were in favor of reclaiming the idle tokens locked up in inactive user accounts.
To honor the outcome, the Sweat Economy team is currently executing the transfer of approximately 2.4 billion $SWEAT tokens from the lockup contract to the governance treasury. These tokens will be held in the governance treasury, and their utilization will be determined in the second part of the proposal.
Looking ahead, the community will soon have the opportunity to vote on the allocation of these 2 billion tokens for the US launch of Sweat Economy scheduled for September 2023. Further details regarding this proposal will be provided in due course.
The Largest Decentralized Autonomous Organization
The impressive turnout for the governance vote surpassed expectations, as the project initially aimed for 350,000 votes and ultimately garnered 355,506 votes in just seven days, exceeding their goal by approximately 5,000 votes. The scale of participation and engagement positions Sweat Economy as the largest decentralized autonomous organization (DAO) to date, emphasizing its commitment to tokenizing physical activity and making it valuable through the $SWEAT token.
Oleg Fomenko, Co-founder of Sweat Economy, expressed his enthusiasm for the successful governance vote, stating, “With more than 350,000 members taking part in the governance vote, Sweat Economy has become not only the biggest on-ramp in Web3 history… It is becoming the largest decentralized autonomous organization (DAO) with the mission to tokenize your physical activity and make it valuable through the token – $SWEAT.”
Following the conclusion of the vote, the Sweat Economy tech team executed the necessary updates to the lockup contracts. This process resulted in significant traffic on the NEAR blockchain, necessitating close collaboration with the NEAR team to ensure stability on the mainnet. The successful execution of the updates highlights the commitment of Sweat Economy to maintaining a robust and reliable infrastructure for its community.
The significant increase in participation compared to a previous governance vote, with a 130% rise in the number of participants, can be attributed to the magnitude of $SWEAT tokens involved, proactive socialization of the topic through Discord AMA sessions, and improved user experience within the Sweat Wallet app. The project diligently provided the community with ample time and opportunities to familiarize themselves with the proposal and ask questions, ensuring transparency and inclusivity throughout the process.
Sweat Economy’s successful governance vote marks a significant milestone in the evolution of decentralized governance and reinforces the project’s commitment to community-driven decision-making and the empowerment of token holders. For more information on the governance vote and related announcements, interested individuals can refer to the official Medium blog post and the press release.
