SWEAT was officially launched on September 13, 2022, and it already sold $1 million worth of tokens on Maker DAO before it hit the market, marking a marked change from the platform’s original in-app format.
With over 40,000 people participating in SWEAT’s public sale, it took just 15 minutes to sell out.
With SWEAT comes a brand new Sweat Wallet app, which offers advanced cryptocurrency wallet features such as NFT storage and staking. Significantly, the wallet offers options for users to transfer, purchase, grow and redeem the SWEAT they collect.
What is the difference between Sweatcoin and SWEAT?
For the most part, the introduction of SWEAT has no direct impact on Sweatcoin. Users can continue to build their Sweatcoins and redeem them on the platform’s dedicated marketplace.
When launched in 2015, Sweatcoin offered a concept that was ahead of its time. The app connected to health apps to track the owner’s steps throughout the day and rewarded them in Sweatcoins, known within the app as SWC.
It was then possible to trade SWC for items on the Sweatcoin marketplace, which often include discounts on fitness products or durable goods.
Despite growing its user base to around 110 million, Sweatcoin’s market was often a bit limited in terms of options available. However, the arrival of SWEAT opens the door to much more functionality.
So, how can SWEAT help revolutionize fitness beyond the capabilities of its predecessor, Sweatcoin? Let’s take a closer look at one of the world’s most unique new crypto assets:
1. Building a fitness crypto economy
Never before has it been so rewarding to run and walk. With this in mind, anyone who takes steps using the Sweatcoin app will be rewarded for their activity.
In building an economy based on movement, Sweatcoin decided to pay out one Sweatcoin for every 1,000 steps taken. However, the company has taken some additional steps with the launch of its own cryptocurrency to secure the value of its coin by gradually increasing the level of work that needs to be done to claim a new Sweatcoin.
In an interview with AltFiOleg Fomenko, co-founder of Sweatcoin and CPO, said:
Sweatcoin is created by the value of your physical activity and the more active you are, the more sweatcoins you can earn. The value of physical activity and the rising marginal cost of production mean that more and more physical activity is actually demanded of you.
The breakdown of SWEAT payouts for 1,000 steps shows that rewards will drop significantly over the course of a year, with 1,000 steps returning around 0.333 SWEAT in 2024, 0.19 SWEAT in 2025 and 0.02 SWEAT in 2031.
This means that while the number of steps SWEAT generates will remain at 1,000 steps per SWEAT through 2024, the reward for the steps will decrease over time.
This helps ensure that markets are not flooded with SWEAT coins, helping to maintain their value, which is good news for Sweatcoin’s bustling digital marketplace, where users can exchange their coins for sporting goods and healthy food plans.
2. Monetary Rewards for Exercise
For the first time in Sweatcoin’s seven-year history, the arrival of a verified SWEAT cryptocurrency means users have the potential to trade their earnings for other coins, which can eventually be paid out in fiat money.
As we can see from CoinGecko’s charts for SWEAT, the asset, launched in September 2022, briefly peaked at an impressive early value of over $0.08, though it has since fallen to around $0.027 at the time of writing.
While this may not pay much for making the effort to take 1,000 steps today, the coin’s growing functionality and built-in tokenomics means that collecting more SWEAT could be a lucrative investment.
While the Sweat Wallet app has yet to enable the built-in crypto exchange, it will eventually encourage users to use their SWEAT coins to trade for Bitcoin, Ethereum, and various altcoins.
3. The value of your income is guaranteed
Sweatcoin’s ambitions become all the more impressive when we consider the ongoing downturn of the cryptocurrency market. Despite many altcoins losing much of their value, Fomenko believes SWEAT will be immune to the same levels of volatility.
There is no doubt that this token is worth something. It cannot equal zero because fitness is valuable. The market will determine how much the value is.
One of the driving forces behind the preservation of SWEAT’s value is coin burning, which occurs when cryptocurrencies are sent to a wallet that can receive coins but cannot spend them – effectively removing them from the market.
With a whopping 137 million users and an estimated 26 million Sweatcoins minted as of the coin’s September 13 launch date, SWEAT will already have a larger circulating supply than Bitcoin, which has minted about 19 million BTC to date.
However, Sweatcoin has also committed to burn 4.5 million SWEAT at launch, reducing its circulating supply. In October 2022, Sweatcoin’s live counter states that just over 27.5 million SWEAT has been created, indicating that more individuals have worked to generate more Sweatcoins in this new cryptocurrency-based format.
Burning cryptocurrencies can help ensure that a coin maintains sufficient scarcity to ensure that it maintains its value over time. By deploying this form of tokenomics, Sweatcoin can help maintain a stable price accumulation level for its assets over time.
4. Work your way to a thriving investment ecosystem
Impressively, Sweatcoin has also introduced a range of investing features in its new Sweat Wallet app. The platform promises up to 12% annual revenue for individuals who choose to deploy their SWEAT in what the app calls “growth pots.”
Staking is a more eco-friendly approach to cryptocurrency blockchains and has gained popularity on the Ethereum, Solana, Polkadot, Algorand, and Cardano protocols. Proof-of-stake (PoS) blockchains use validators instead of miners, which help protect the network by staking some level of the chain’s native cryptocurrency.
This essentially helps them lock down cryptocurrencies, which can then be used to validate transactions on the blockchain.
Using staking, Sweatcoin has opened up its network to deliver rewards to users who want to invest the coins they work for.
5. Embrace NFTs and Crypto Donations
Another exciting development within the Sweatcoin Wallet app revolves around the alternative features that SWEAT can offer, such as buying exclusive NFTs or donating to charities.
Sweat Wallet has its own dedicated section that can store non-fungible tokens, and NEAR wallet functionality means NFTs can be sent and received within the app. In addition, Sweatcoin indicates that it is ready to embrace NFTs in the future by including non-replaceable token prize draws in the app’s market. At the time of writing, Sweat Economy has partnered with Paras to offer users one of 888 NFTs in an exclusive prize draw for users who wager their coins.
Alternatively, Sweatcoin has often given its community the opportunity to donate their earnings to charities such as sustainability projects and humanitarian disaster appeals.
Sweatcoin: a health-conscious reward system
While the emergence of the new ‘sweat economy’ is still in its infancy, early signs point to a vibrant earning ecosystem with a growing array of investment and spending options for a user base of 137 million people. Should SWEAT live up to its potential, the task of embracing movement might never have been more rewarding.