With its approaching token burn vote, Sweat Economy, the company behind the well-known Sweatcoin and Sweat Wallet applications, will propose a revolutionary new method of Web3 governance.
Sweat Economy’s community will have the power to select how to handle the 100 million $SWEAT tokens gathered as fees and earnings by the project since the start of this year via the vote, which is scheduled to take place from April 18 through April 23, 2023. The community will select what fraction of this sum will be burnt and what portion will be used to reward long-term $SWEAT stakers. For three reasons, it stands out as the most amazing governance plan for the ecosystem to date.
1. It will be managed on the mobile application, making participation simple for all $SWEAT holders.
2. Voting will be conducted on the principle of “one token holder = one vote,” which is considerably different from the conventional method in which a user’s token holdings determine their influence on the vote.
3. Since only holders of liquid tokens are eligible to vote, there is no way for the team, investors, or foundation to impact the outcome.
The change is a substantial shift from conventional Web3 governance voting, which usually involves users navigating online environments and non-custodial wallet prompts and is based on the one token = one vote concept, favoring whales and other big token holders.
Instead, Sweat Economy is introducing its vote inside the Sweat Wallet mobile application, enabling consumers to take part in this significant governance proposition without any restrictions. Users just need to launch the Sweat Wallet app, choose whether they want to distribute or burn their tokens, and then pay the voting price with one SWEAT token to participate in the token burn vote.
“We believe that everyone should have a say in the direction of our company, regardless of the amount of tokens they hold, their knowledge of Web3 governance or wallet connection,” said Oleg Fomenko, co-founder of Sweat Economy. “Our innovative vote mechanism will make it easy for anyone to have a voice and participate in the decision-making process.”
Sweat Economy’s method of voting for governance is anticipated to draw a large number of participants, perhaps making it the most important vote in terms of participation in Web3 governance history.
Instead of burning the tokens, voting will include choosing a specific number to distribute. Five percentage-based denominations will be used: 0%, 25%, 50%, 75%, and 100%. Users who staked $SWEAT tokens in the app for a 12-month period will receive a proportionate amount of $SWEAT from the 100 million $SWEAT token pool if the vote’s outcome is to distribute some of the funds. This will be done by calculating an average of the selected denominations that were voted “for” after the voting window.
Since its launch in 2015, Sweat Economy has amassed more than 120 million users globally. Since the Token Generation Event (TGE) in September 2022, more than 15 million people have joined the Web3 ecosystem using the Sweat Wallet app.
In order to hasten its entry into Web3, the business completed $13 million in investment in July 2022, including a private token sale. The fundraising round included participation from renowned blockchain investors Electric Capital, Spartan Capital, OKX Blockdream Ventures, Swissborg Ventures, and GSR Ventures. Goodwater Capital, an existing investor, also took part.
Sweat Economy is set to become the first DAO with 100,000,000+ members and transform how businesses connect with their communities for decision-making thanks to its ground-breaking approach to Web3 governance.
