Sweat Economy shakes up Web3 with biggest governance proposal
Sweat Economy, the brand behind the popular Sweatcoin and Sweat Wallet apps, is proposing a groundbreaking new approach to Web3 governance with its upcoming token burn vote.
The vote, set to take place on April 18 to April 23, 2023, will give Sweat Economy’s community the authority to decide how to deal with the 100 million $SWEAT tokens accumulated as fees and revenues by the project since the start of this year. The community will decide what proportion of this amount will go to reward long-term $SWEAT stakers and what percentage will be burned. It represents the most remarkable governance proposal for the ecosystem to date for three reasons:
1. It will be handled in the mobile application making it easy for every $SWEAT holder to participate
2. Voting will be done based on one token holder = one vote, which is very different from the usual approach where the amount of tokens held by the user determines their impact on the vote
3. Only holders of liquid tokens can participate, which makes this a true community vote, as neither team nor investors or Foundation can sway the vote.
The move marks a significant departure from traditional Web3 governance voting, which typically requires users to navigate web environments and non-custodial wallet prompts and is based on one token = one vote principle, therefore, favouring whales and other large token holders.
Instead, Sweat Economy is launching its vote within the Sweat Wallet mobile app, allowing users to participate in this milestone governance proposal without any barriers. To participate in the token burn vote, users simply need to open the Sweat Wallet app and cast their vote by selecting their distribute vs burn preference and covering the voting fee with one SWEAT token.
“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 approach to governance voting is expected to attract many participants, potentially making it the most significant vote in terms of participation in the history of Web3 governance.
Voting will take the form of selecting a fixed denomination of tokens to distribute as opposed to burning them. There will be five denominations denoted in percentages: 0%, 25%, 50%, 75%, and 100%. If the result of the vote is to distribute part of the funds, an average of the selected denominations voted “for” will be calculated post the voting window, and 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.
Since its inception in 2015, Sweat Economy has acquired over 120 million users worldwide, with more than 15 million users joining the Web3 ecosystem with the Sweat Wallet app since the Token Generation Event (TGE) in September 2022.
The company completed $13 million in funding in July 2022, including a private token sale, to accelerate its move into Web3. Leading blockchain investors, including Electric Capital, Spartan Capital, OKX Blockdream Ventures, Swissborg Ventures, and GSR Ventures, joined the funding round. Existing investor Goodwater Capital also participated.
With Sweat Economy’s innovative approach to Web3 governance, the company is poised to become the first DAO with 100,000,000+ members and revolutionize how companies engage with their communities for decision-making.
About Sweat Economy
Established in 2015, Sweat Economy promotes healthier living by encouraging people to move more. Sweatcoin, the most downloaded health and fitness app globally in 2022, incentivizes over 130 million users to move more by earning sweatcoins, dubbed ‘Airmiles for steps.’ The in-app currency can be redeemed for branded products, digital services, or donated to various charities. Last summer, Sweat Economy launched the Sweat Wallet app and its cryptocurrency, $SWEAT, to further reward users and establish a tangible financial unit of value for movement. Over 14 million users received airdropped tokens, constituting the largest crypto giveaway ever. By harnessing the decentralized power of Web3, the company is well on its way to creating a true economy of movement where health and wealth intersect.