# 4.2 Token Distribution: A Community-Driven Foundation

$SWEAT’s tokenomics are rooted in a simple yet powerful idea: **the value you create through your movement belongs to you**. That’s why, from the very beginning, we designed $SWEAT’s initial distribution to prioritize **you—the community**, ensuring that the majority of tokens are in the hands of those who power the Movement Economy. Our genesis allocation strikes a careful balance between empowering users, rewarding contributors, supporting growth, and ensuring long-term sustainability, all while fostering a decentralized ecosystem where your voice matters.

Here’s how the initial supply breaks down:

<figure><img src="https://450294349-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F5LBtI4DUazz0dmd9LHuB%2Fuploads%2FrJ5s64DwZU4siZhAUEdm%2FWP%20-%20Pie%20Division.png?alt=media&#x26;token=67ccbb08-6f18-4bc7-9e5c-f26268c115e4" alt=""><figcaption><p>Initial Token Allocation from TGE in September 2022</p></figcaption></figure>

* **Lockdrop – 25.0%**\
  The single largest community allocation went straight to you, the early steppers. The Lockdrop rewarded users for minting sweatcoins in the years leading to TGE, laying the groundwork for a truly community-powered economy.
* **Foundation Treasury – 27.71%**\
  Managed by the Sweat Foundation, this reserve fuels future development, global expansion, strategic partnerships, and initiatives like buyback & burn programs (see Section 4.4). It’s the engine room of innovation.
* **SweatCo Ltd – 22.0%**\
  Allocated to the company that built our Movement Validator, Sweatcoin.
* **Team & Advisors – 10.92%**\
  Set aside for the builders and visionaries who brought the project to life. These tokens are locked and vested over multiple years, ensuring long-term alignment with the community.
* **Ecosystem – 7.02%**\
  Designed to support app integrations, rewards, and ecosystem partnerships that amplify the utility of $SWEAT.
* **Private Round – 3.33%**\
  Provided to early backers who believed in the mission and helped bootstrap the ecosystem’s early growth.
* **Seed Round – 2.68%**\
  Allocated to initial investors supporting the foundational build phase.
* **Public Sale – 1.33%**\
  Breaking the DAOMaker record at the time, $1M of $SWEAT sold out within 15 minutes of public sale.