The sports health app Sweatcoin introduced Sweat Economy (SWEAT), an M2E cryptocurrency. Sweatcoin promotes better lifestyles by motivating more people to work out.
A well-known Web2 application called Sweatcoin was launched in 2016 and uses a specific restricted currency to reward users for their steps. According to Sweatcoin's official introduction, it is currently used in more than 50 different nations and areas. There are currently 11 million cryptocurrency users.
Sweatcoin launched the decentralized SWEAT, which is minted by users through the movement and through the application, after joining the Web3 market. In other words, by earning decentralized SWEAT tokens, users can reward themselves for working out.
In contrast to current X2E-style projects, Sweatcoin introduces a single-token method based on SWEAT rather than NFT and dual-token tokenomics. The entry standard is decreased as a result of the fact that participating users are not needed to buy NFT as the admission threshold. By exercising, users can easily sign up for the system.
Although there is just one token economy, which is a drawback, the gameplay is straightforward. The NFT game is being developed by Sweatcoin and will be made available through the Sweat Wallet app. This will debut immediately following the Token Generation Event (TGE).
To keep the X2E economy viable, Sweatcoin users must stake SWEAT while they are playing the game. The initiative will collect fees and burn tokens to achieve deflation. Any SWEAT staked by the competitor will be awarded to the winner.
Sweatcoin will also turn on the staking feature. The unique profits of the parent firm of the Sweat Foundation are used in part to finance the repurchasing and burning of SWEAT on the secondary market. The buyback also benefits the user in other ways.
SWEAT Tokenomics
In accordance with the formal debut of the Sweat Economy, 25.8 billion SWEAT have been produced, of which 4.8 billion will be burned because the SWEAT's worth has plummeted.
The remaining SWEATs have been distributed in accordance with the tokenomics provided by the official Sweat Economy website:
- 7.02% for ecosystem
- 22% for SweatCo Ltd
- 27.71 for Foundation treasury
- 25% for Lockdrop
- 10.92% for Team and advisors
- 2.68% for Seed round
- 1.33% for Public Sale
- 3.33% for Private round
Project Funding
Sweat Economy received a $13 million investment on July 26 from a group of investors headed by Electric Capital, Spartan Capital, Swissborg Ventures, GSR Ventures, and Goodwater Capital.
Applications
SWEAT's primary use cases involve sports rewards, voting and governance, staking, ecosystem payment methods, transaction costs, etc. The incentive in the Sweat Economy (SWEAT) economic system, however, may be stronger the earlier you sign up. It's important to keep in mind, however, that as time goes on and more people utilize it, the benefit will likely diminish and become unsustainable.
Market Risks
- After the Public Sale and Private Round went live, there was selling pressure on the secondary market.
- Potential selling pressure from the Foundation's staff, advisers, and treasury.
- Sales are under pressure from customers' desire for rewards.
This article was written by MEXC community members exclusively for knowledge sharing, not as investment advice.