I don't have a strong feeling either way on sweep/no sweep for inactive accounts. It just seemed that Town wanted to dilute the game for 10% (rather than taking some from Zech's 50%), so may as well let them go for even more funds if they could shake them out
Just leave the inactive players alone; I get the "dead accounts decrease supply" argument and it's fine.
I don't understand the technical issue. Regardless of which token is used, you need a depository to interface between in-game and out-of-game (blockchain).
Since all of the M (CK/CKM/currency, whatever you call it) is currently in game, the depository (blockchain) wallet starts 'full' with all of the blockchain tokens (as if the currency started out of game, like XMR or BTC, but were all deposited). As people withdraw, the depository wallet pays them out on-chain.
As always, depository fraud or negligence is going to create problems. Multisig, good transparency/reporting, dividing the wallet between multiple custodians, etc. may all be good ideas.
The problem is that CK has an absolute shit "Wizard Developer PJ." As a matter of fact, "Piss Developer PJ" is more like it. Shit and piss. He can't even get a database to work, so I really doubt he can get a blockchain depository going on. That being said, rather than letting shit development dictate what is produced, like a shitty token, better to do it at least somewhat decent or not at all.
Anyway, Smooth has the right idea. You run it like any coin/token distribution where all the coins start in the depository wallet.
In regards to token types, the absolute fairest way is to have the currency and ownership amounts based on current M. Current M distribution has a backlog of embedded currency and ownership value from CON, "old" CK, and so on. Please, don't make this confusing/stupid and go with gold or anything. And I own a lot more gold as a % of total gold than M as a % of total M, so I'm shooting myself in the foot here, but really M makes sense as the base.
To illustrate, if someone owns 1% of M right now, they will own 1% of CKM (money/currency) and 1% of CKO (ownership). Once the CKM and CKO distributions are done to the depository wallet and accounts, you delete M.