Fitness App Sweat Economy to Decide Fate of 2.5 Billion Abandoned Tokens

cryptonews.com:

Move-to-Earn fitness platform Sweat Economy has proposed a governance vote to reassign over 2 billion abandoned SWEAT tokens. 

The protocol had assigned billions of SWEAT tokens to users who signed up during its token generation event (TGE).

According to a recent blog post, several users never downloaded the Sweat Wallet app, leaving about 2.5 billion SWEAT tokens (13% of the total token supply) idle or abandoned.

Sweat Economy is a health and fitness platform that encourages users to keep fit, letting them earn SWEAT tokens while performing physical activities. 

Users can convert the SWEAT tokens into other cryptocurrencies or use them to purchase items.

According to a recent blog post, Sweat Economy seeks the community's opinion after over a year of fruitless effort contacting the owners of the idle SWEAT tokens. 

According to the project, its community ideally has no recourse for recovering these abandoned tokens.

However, the project placed 90% of the tokens at TGE in a lockup contract that automatically unlocks them over 24 months. 

The Sweat Foundation holds the keys to the lockup contract, providing an opportunity to reassign the abandoned tokens.

Therefore, the project has proposed a two-step approach to recover and reallocate the "idle" tokens. 

The first part of the approach includes an in-app vote, allowing the Seat Foundation to retrieve the locked, idle SWEAT tokens and transfer them to a treasury wallet.

The unlocked tokens will remain in the foundation's treasury until the issuance of a future proposal outlining its reallocation plans. 

According to the blog post, potential reallocation plans could include burning a percentage of the tokens or using them to fund operational costs or support future product launches.

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