Sweat Economy
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Sweat Economy is an on-chain crypto ecosystem and mobile app that facilitates the M2E reward model. In its simplest terms, it’s a web3 application of the existing web2 Sweatcoin app – which the team claims as 2022’s #1 downloaded health and fitness app in 58 countries.
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Sweatcoin was established in 2015. The Sweatcoin team claims their product has experienced 120 million downloads worldwide across web2 and web3. The platform wants to revolutionize fitness by exploiting the M2E reward model and making it freely available to all users. It has put in place multiple measures to regulate its token supply while remaining attractive to users, as seen in SWEAT’s supply schedule.
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The Sweatcoin app boasts more than 63 million users, who have made a total of almost 20 trillion moves. When SWEAT was launched, the earlier users were allowed to swap their rewards for equivalent amounts of SWEAT tokens. The ability to exchange their rewards for a cryptocurrency with utility has resulted in the largest ever airdrop to active and opted-in wallets. Within 24 hours of integrating a crypto-based reward model on the Sweatcoin platform, it received over 150,000 users.
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Since then, more and more people are opting in – currently, there are almost 300,000 users. Unlike in most cryptocurrencies, where users have to buy expensive equipment to mine coins or stake their holding to receive rewards, Sweatcoin users don’t have to purchase expensive mining equipment or stake their digital assets to earn SWEAT. Instead, they simply need to move around.
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OK. Now we will see some explanations about how does sweat economy work:
What is Move-to-Earn (M2E)?
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Move-to-Earn aims to keep people physically active throughout the day, motivating them with the opportunity to earn incentives and rewards for moving around and doing exercises in the real world.
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The crypto world has a fair share of innovative economic models supporting digital assets, but none beats M2E from a fitness perspective. By incentivizing users with cryptocurrencies and other rewards, multiple M2E apps have emerged to make fitness more attractive and rewarding.
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M2E took off with STEPN, a fitness app that rewards users with crypto for exercising, which launched after COVID19 had lessened in most countries. Other web3 apps that leverage the M2E model apart from STEPN include GenoPets, Dustland, Step App, DOSE, and now Sweatcoin’s Sweat Economy.
How Does the Sweat Economy Work?
- The Sweat Economy works in combination with the Sweatcoin mobile app. Users can generate rewards by participating in various fitness exercises, such as walking or running through the app. After accumulating rewards, you can spend them internally to purchase goods and services, exchange them for SWEAT tokens, or hold them in a web3 wallet.
- Right now, users earn 1 SWEAT for each 1,000 moves performed. However, according to the Sweatcoin tokenomics, the pace of token issuance slows gradually. After one year from launch, 1,000 moves will generate 0.33 SWEAT, 0.19 SWEAT after two years, 0.19 SWEAT after three years, 0.06 SWEAT after four years, and 0.02 SWEAT after five years. Moreover, the token will become deflationary as the Sweat Economy goes mainstream.