Move-to-earn app creator Sweat Economy is set to let its users decide on how to spend almost $1 million worth of tokens earned as fees and revenue through a governance vote with a twist.
According to its announcement, the project will allow users to vote on how much of the tokens will be burned and how much will be given as a reward for users who staked their tokens. However, instead of the common mechanism that counts one token as one vote, which favors those holding more tokens, the voting mechanism is set to one tokenholder having one vote.
I am often asked, “when is the next burn?”
An update:
1. A very big and exciting community vote will come in the next 10 days – watch this space!
2. For those that don’t want to wait simply send your tokens to the “burn.sweat” address in Sweat Wallet app. Done
— Oleg Sweat Economy (@oleg_fem) March 30, 2023
Oleg Fomenko, the co-founder of Sweat Economy, said that this mechanism would allow everyone to have a voice and participate in its decision-making. Fomenko explained:
“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.“
The Sweat Economy team said the vote would take place on its mobile application to let every tokenholder participate. In addition, the team claimed that the foundation, investors or team could not sway the vote as only those holding liquid tokens could participate.
Fomenko also told Cointelegraph that, in practice, it will work “as a fixed transaction of nominal value in SWEAT from within the app.“ According to the CEO, users will not have a way of changing this amount, resulting in only one transaction per user. Fomenko also said that while users may try to “game the system” by creating multiple accounts, they have mechanisms that allow them to track this on-chain and exclude those votes.
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Meanwhile, a recent proposal to return 700 million Arbitrum (ARB) to the project’s decentralized autonomous organization (DAO) treasury has failed after a vote on April 15. The vote was introduced after the Arbitrum Foundation transferred funds without the approval of the community. The proposal asked the foundation to let its community know that the governance holders control the DAO.
Magazine: The legal dangers of getting involved with DAOs
Source: https://cointelegraph.com/news/project-aims-for-fair-governance-by-changing-the-voting-system
