I'd be careful with words like toxic. I don't think there's anything wrong with these bursts of work, as long as it's your ow choice to participate, and there's no pressure to enter. (I don't know if this pressure exists when the company you work for organizes a hackathon, for example). I think it can be extremely valuable to take something from idea to completion under a tight time constraint.
I do like the idea of trying to create a form of hackathon that doesn't wreck your sleeping patterns as much. If you could somehow ensure that code doesn't leave the physical room in which the hackathon happens, you could prohibit people from woking outside the hours of 9AM-5PM, but still spread the event over multiple days.
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