The introduction of technology and the digital world has led to our daily lives being dominated by screens and technological appliances that reduce our physical activities to a minimum. In an attempt to negate this trend, Sweatcoin, a fitness app, has come to infuse the fitness and the technological world together through the use of blockchain technology. It has taken the fitness and tech industry by storm, and in this article, we are going to explore Sweatcoin, its origins, how it works, and the impact it has on the Sweat Economy.

What is Sweatcoin and Sweat Economy?

Source: Sweat Team

Sweat Economy is the upcoming Web3 extension to the popular Sweatcoin fitness app. It is an on-chain token ecosystem and app that helps reward committed users for keeping fit and staying healthy.

Sweatcoin was launched in 2015 and is known as the most popular move-to-earn application out there. It is currently the most downloaded Health and fitness app in over 60 countries. The team boasts over 110 million downloads across 165 countries.

Sweat Economy is a new addition that brings Sweatcoin on-chain and introduces the SWEAT token, the Sweat DAO, the non-custodial Sweat Wallet, the NFT marketplace, and a new ecosystem for new Sweat products, all powered by blockchain technology.

History of The Sweat Economy

Oleg Fomenko and Anton Derlyatka founded Sweatcoin in 2016 with the goal of using modern technology to motivate people to become more physically active, ultimately boosting their physical health and well-being. The developers were inspired to create the app when Oleg was not motivated to train. Oleg’s desire to be successful in his start-up seemed more important than his physical health at that moment.

The two developers greatly believed that modern technology was being used wrongly. They believed in being rewarded for your hard and healthy work rather than the instant gratification that most users are used to. After its launch, Sweatcoin grew exponentially, gathering over 10 million users in its first two years. The reward system paid off, as many users were motivated to engage in more physical activities.

Sweat Economy was later introduced officially in April 2022. This was because the pair always wanted to develop a cryptocurrency. After all, they believed crypto could return the value of movement to the user. This could not be implemented earlier due to the technology not being available. Once it became clear that the tech needed was available, the vision they once had could finally come to pass.

How Does Sweat Economy Work?

The Sweat Economy and the Sweat app work hand in hand. Users participate in various exercises, such as walking or running through the app, to generate rewards. The accumulated rewards can be spent internally to purchase goods and services. They can also be exchanged for SWEAT tokens or held in web3 wallets.

Once minted on-chain and available in the Sweat Wallet app, users are usually free to use their tokens however they wish. They could use it to play games, unlock special perks, or exchange it for other assets on the platform. Users can also stake their SWEAT tokens to earn yield and unlock access to further rewards, such as event tickets, gift cards, and partner NFTs.

The Sweatcoin app uses a couple of data storing systems, such as GPS and motion sensors, to track users’ physical activities to ensure they are rewarded accordingly. The app also uses motion validators to ensure the accuracy and legitimacy of the user’s movements on the blockchain. The gathered information from the user gadget goes through an algorithm that detects fraudulent activities before recording the legitimate ones on the blockchain.

Features of The Sweat Economy

Since its launch in 2015 with the Sweatcoin platform, the Sweat Economy has been making waves with the Web2 product and has now recently moved to its Web3 counterpart geared with cryptocurrency rewards as its new extension. Some of the new platform’s features include:

Decentralization

A particular body does not govern the platform; rather, it practices a basic economic principle that is open and believes free markets are more effective and efficient and yield better results. As such, the rules of the economy are decided by SWEAT holders. The voting will be done via the Sweat DAO.

Although the platform was initially launched out of a centralized app, the team now aims to decentralize power to the community. In the coming years, marketplaces, several forms of movement, use cases, and applications can be implemented according to the user’s decisions.

Open

The platform is free to all who wish to partake in the economy. No one needs to seek permission before minting the SWEAT token with their movements as long as they are not in restricted territories. Anyone within accepted territories can also earn rewards associated with the token.

Users can earn SWEAT by verifying the movement, either through the Apple Watch, FitBit, Technogym, or other wearables and activity trackers. These entities that verify movements are called Movement Validators.

Users can also use SWEAT for business purposes. For example, a brand purchasing SWEAT to advertise to the user base or a health insurer needing proof of physical activities to drop the cost of premiums.

Borderless

To build a truly healthier and wealthier planet, the economy has to be borderless. Although some areas are restricted for certain legal reasons, the Sweat Economy is fundamentally built to be borderless. The Sweatcoin app is currently the only way to mint SWEAT, but the app is extending to several countries.

SWEAT

The SWEAT token is the engine behind the Sweat Economy. A cryptocurrency only truly has value when it has application, utility, and use cases. SWEAT gains its utility from the Sweat Economy. It also has a fundamental value to users. In-app staking offers up to 12% yield and has been designed as a net deflationary method.

Sweat Hero & NFT

Introducing Sweat Hero, Sweat Ecosystem’s game and NFT platform. This platform motivates players to harness their physical strength to take part in intense battles against one another. Continuing its goal of motivating world health, Sweat Hero takes that to the next step, encouraging users to develop daily walking habits, inspiring the world to walk more, and incentivizing physical activities.

Sweat Hero is a platform built with sustainable tokenomics at its center. Users do not have to purchase an NFT to access the game like other move-to-earn applications practice. The platform is monetized in the following way:

In Sweat Hero, gamers join the platform for free and access a free Legs NFT. They engage in battles, and the more battles users play, the more battle fees are collected and the more $SWEAT tokens go into the token sink, creating sustainable tokenomics.

The Legs NFT comes with limited energy, which, when depleted after a couple of battles, can only regenerate over a certain wait period or by watching short adverts. These advertisements generate a small amount for the Sweat economy, which can be used in the future to develop other features.

SWEAT Token

SWEAT is the platform’s new token built on the NEAR blockchain generated by the user’s movement. It is generated through the Sweatcoin app and only created with the user’s steps. In the future, the platform plans to add more activities that can be used to create SWEAT, like swimming, working out, cycling, and many more.

The SWEAT token powers the SWEAT Economy as the reward token and the main currency used to exchange in the ecosystem. It is used to unlock reward points, including vouchers and discounts for various brands, tickets to sports activities, and stablecoin prizes. Users can also stake their SWEAT tokens to raise their daily minting limit.

The platform is also set to release an NFT-based game in the Sweat wallet that would allow users to stake their tokens and compete with other users. The game would lead to SWEAT being burnt, which would help minimize the token’s circulating supply. External NFT holders who wish to promote their products to the Sweatcoin community will also have to use SWEAT tokens to pay service fees.

In July 2023, the Sweat Economy community held the largest governance vote ever in the Web3 space, with over 380,000 token holders casting their votes to support the launch in the US with 690M SWEAT tokens and to implement a gradual burn of 1.6B SWEAT tokens.

Tokenomics

SWEAT token has an uncapped supply to incentivize movement in perpetuity. Supply of the token greatly depends on the physical activity already recorded, meaning a minted token is backed by the value of physical activity and nothing else. The minted tokens are to be allocated in the following ways:

• Foundation treasury: 27.71%
• Lockdrop: 25%
• SweatCo Ltd: 22%
• Project team and advisors: 10.92%
• The Ecosystem: 7.02%
• Private round: 3.33%
• Seed round: 2.68%
• Public sale: 1.33%

Conclusion

Sweat Economy is focused on improving the health of the world while creating wealth through rewards for users. Through incentivizing movement, they have improved the general well-being of individuals. The innovative project promises to bring a new way for users to earn a new economic incentive model while being healthier.

How to buy SWEAT

SWEAT is available on a handful of cryptocurrency exchanges. It is offered on exchanges such as Gate.io. To begin trading, users must register on the platform, create a gate.io account, complete the Know Your Customer (KYC) procedure, and then find out how to purchase the token after funding their accounts.

Take Action

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• SWEAT/USDT