With its upcoming token burn vote, Sweat Economy – the company responsible for developing the renowned Sweatcoin and Sweat Wallet applications – is introducing an innovative approach to Web3 governance that promises to be groundbreaking. The vote, which is scheduled to take place between April 18 and April 23, 2023, will provide the community of Sweat Economy with the authority to decide how to handle the 100 million $SWEAT tokens that have been accumulated as a result of fees and earnings by the project since the beginning of this year.
The community will choose which part of this amount will be burned and what proportion will be used to reward $SWEAT stakers who have held their positions for an extended period of time. In light of three main factors, it is the most remarkable governance proposal for the ecosystem to have been considered to this point. To begin, all of the processing will take place within the mobile application, which will make it extremely convenient for anyone who owns $SWEAT to take part.
The second factor that will be implemented is that voting will be conducted on the basis of one token holder equaling one vote. This is an important shift from the conventional approach, which is based on the number of tokens held by the user to assess their influence on the vote. Finally, participation is restricted to people who already own liquid tokens; this ensures that the outcome of the vote can only be influenced by the community as a whole, rather than by the team, investors, or Foundation.
Barrier-Free Participation in Governance Proposals
The move is a considerable shift from the traditional approach of voting for Web3 governance, which needs users to navigate web environments and non-custodial wallet prompts on a regular basis. Additionally, it is predicated on the principle that one token equals one vote, which favors whales and other large token holders.
Instead, Sweat Economy will be holding its vote via the Sweat Wallet mobile app, which will remove any barriers that may have prevented users from participating in this important governance proposal. Users only need to open the Sweat Wallet app in order to participate in the token burn vote and cast their vote by picking their distribute vs burn option and covering the voting price with one SWEAT token.
Oleg Fomenko, the co-founder of Sweat Economy, said: “We believe that everyone should have a say in the direction of our company, regardless of the number of tokens they hold, their knowledge of Web3 governance or wallet connection. Our innovative vote mechanism will make it easy for anyone to have a voice and participate in the decision-making process.”
It is anticipated that numerous individuals will participate in the voting process for governance proposed by Sweat Economy, which may make this vote the most significant vote in the history of Web3 governance in terms of the number of people who cast their votes. In place of just burning the tokens, the voting process will involve choosing a certain number of tokens of a given denomination to hand out.
There will be five different denominations, each of which will be represented as a percentage: 0%, 25%, 50%, 75%, and 100%. If the outcome of the vote is to distribute some of the funds after the voting window has closed, an average of the selected denominations that were voted “for” will be calculated, and users who have staked $SWEAT tokens in the app for a period of 12 months will receive a proportionate amount of $SWEAT tokens from the pool of 100 million $SWEAT tokens.
Revolutionizing the Overall Web3 Ecosystem
Since its launch in 2015, Sweat Economy has amassed more than 120 million users across the globe. Since the Token Generation Event (TGE) in September 2022, more than 15 million users have joined the Web3 ecosystem by using the Sweat Wallet app. In order to speed up its transition towards Web3, the company successfully raised $13 million in funding in July of 2022, which included a private token sale.
During the course of the funding round, participation came from notable blockchain investors such as Electric Capital, Spartan Capital, OKX Blockdream Ventures, Swissborg Ventures, and GSR Ventures. Goodwater Capital, an existing investor, also took part in this round. Considering Sweat Economy takes a novel approach to the governance of Web3, the company is well positioned to become the first DAO with more than 100,000,000 members and to transform the way in which businesses interact with the communities in which they operate for the purpose of decision-making.
Sweat Economy encourages individuals to move around more, which contributes to a healthier way of life. Sweatcoin, which is estimated to be the most downloaded health and fitness app worldwide in 2022, provides over 130 million users with an incentive to exercise more by allowing them to earn sweatcoins, which are referred to as ‘Airmiles for steps.’ The app’s native currency can be exchanged for branded goods and digital services, or it can be given to a variety of charitable organizations.
The Sweat Wallet app and its supporting cryptocurrency, $SWEAT, were both released by Sweat Economy last summer, with the intention of further rewarding users and establishing a tangible financial unit of value for movement. Tokens were distributed through airdrop to over 14 million different people, making it the greatest cryptocurrency giveaway in history. By tapping into the decentralized power of Web3, the company is well on its way to realizing its vision of establishing a movement-based economy at the intersection of health and wealth.
