Proposal: +2B $SWEAT reallocation
Update: The results are in! Click here to see how the community voted!
Millions of users signed up to participate in the TGE leading up to our launch in September 2022, and their $SWEAT tokens were allocated.
However, at our TGE and until this day, a portion of these users have not downloaded the Sweat Wallet app, nor generated any steps and have not responded to our emails or push notifications over the past 12 months.
None of the $SWEAT tokens allocated to these users during the TGE have been claimed, with the tokens thus being regarded as “abandoned” or “idle”.
What is the proposal?
About 2.5 billion $SWEAT tokens, or roughly 13% of the total supply is the total amount of $SWEAT allocated for these accounts, in normal circumstances the project and the community have no recourse for recovering these tokens.
However in our case, 90% of the tokens at TGE were placed in a lockup contract that was intended to unlock the remaining tokens over the course of 24 months, and the foundation holds the keys to this contract, giving us a special opportunity to repurpose these “abandoned” tokens.
This proposal is part of a two-step approach. To begin, we will have an in-app vote to allow the following:
- The Sweat Foundation retrieves the locked, idle tokens and transfers them to a transparent treasury wallet.
- Hold the tokens in the treasury until a future proposal outlining our reallocation plans, such as burning a percentage, funding operational costs, or supporting future product launches.
This proposal will allow us to make a transfer from tge-lockup.sweat, to governance.treasury.sweat
We will be holding these tokens in a dedicated treasury wallet. They will not be utilised in any way until we have completed a second proposal, and you, the community have approved any actions.
Will I be affected?
The fact that you are reading this blog post likely means that you have used the Sweat Wallet app at some point since launch, so you would not be affected.
As mentioned above, the approximate 2.5B $SWEAT will be reallocated from unclaimed TGE matching. This only affects users who:
- Opted in to $SWEAT
- Have never downloaded the Sweat Wallet app
- Have not reacted to any of our numerous attempts to contact them
If you are one of the users who have not used the Sweat Wallet app since opting in, simply download the app and log in now — it’s not too late!
The cut off time for claiming your tokens will be as soon as the in-app vote ends. This is also why we do not have exact figures, as the amount of unclaimed tokens is subject to change.
Voting Rules
You may remember our latest vote on 100M $SWEAT, Burn or Distribute. We consider that vote to be an astounding success, engaging over 150,000 members of our community! As such, we have devised a few criteria for the upcoming vote:
- A minimum of 75,000 votes is required for the proposal to be accepted or denied.
- Each person is entitled to one vote, and a small fee of 0.1 $SWEAT is charged per vote.
- The proposal will run for at least 7 days, with the possibility of a 3-day extension, in the event of an ongoing influx of votes. (We want to ensure everyone has a fair opportunity to make their vote count)
The criteria above must be filled for this proposal to be accepted.
This vote will be run in the Sweat Wallet app, easily accessed through the home screen for our millions of users.
Community Feedback
As always, the community is at the heart of everything we do. As such, we will have a discussion call on our Discord community, Monday 5th June, 2PM UTC.
This will allow you to give any suggestions and feedback on the proposal, in-app designs, and anything else you’d like to mention around voting before the in-app vote goes live.
In addition there is a new dedicated channel for discussing the proposal and asking questions, which we will cover during the call on Monday.
Ensuring this situation doesn’t repeat
While we can resolve the abandoned 13% of total supply, this is not something we want to repeat. Ideally, the Sweat Foundation does not have to step in at any time.
As such, you may have heard of our latest feature, “Minting Pause”. In short, the “Minting Pause” for inactive users will ensure that there is not an influx of abandoned $SWEAT tokens inflating the supply.
TLDR
Phew! That was a lot to read through, right? Don’t worry, here’s the TLDR we promised you:
- Retrieve circa. 2.5B abandoned $SWEAT tokens from unclaimed allocations.
- Keep the retrieved SWEAT in a treasury account until the outcome of the next proposal determines how these tokens are re-purposed.
- In-app vote will run for at least 7 days, possibly extended to 10 days.
- A minimum of 75,000 participants.
- Small 0.1 $SWEAT fee per vote, one vote per person.
