Over time, the blockchain industry has evolved with many new and interesting use cases, consensus protocols, and transaction validation methods. Fitness and staying active is another recent use case that has cropped up with users being able to earn tokens for keeping fit.
This ecosystem also includes staking earned tokens, token swaps, and liquidity provision. Let's look at SWEAT Economy and its ecosystem that comes into play with crypto users who want to keep themselves active.
What is SWEAT Economy?
Sweat Economy is the name for a sweat-to-earn ecosystem built on the NEAR Protocol that uses cryptocurrency rewards to encourage people to exercise.The platform encourages people to work out, earn tokens, and use these tokens as a way to buy things, with the aim of creating a healthy economy. The people who use the platform, the tools that track their movements, and the SWEAT token are all part of the economy.
What is Sweatcoin?
Sweatcoin is a smartphone app for Android, iOS, and Windows devices that track the number of steps you take every day. It connects with other health tracking platforms like Apple Fit and Google Fit to track activity which includes walking, running, and jogging. The app has an in-app token called Sweatcoin that users earn by taking steps, with 1,000 steps earning a user one whole Sweatcoin.
If users take less than 1,000 steps, they earn a fraction of a Sweatcoin instead (i.e. 500 steps = 0.5 Sweatcoin). There is currently a daily 10,000-step limit for users who want to earn Sweatcoin on the app. Users are also able to convert their Sweatcoins for products and services using the in-app marketplace and auction platforms, as well as donate these tokens to charities that are partnered with the platform.
If users opt-in to earn cryptocurrency, they will earn the SWEAT cryptocurrency for the first 5,000 steps they take. The remaining 5,000 steps will be converted into the Sweatcoin token. Users can then exchange these for various rewards or even donate them to charity.
Features
Outside of the Sweatcoin app, there is a growing ecosystem around which SWEAT is centered around. NFTs, staking, and decentralized finance (Defi) are some of the systems within the SWEAT Economy.
The system uses "Movement Validators" who are needed to check if a transaction is valid and then update the blockchain. Consistent and accurate movement validation is a key part of ensuring the underlying asset's integrity.
The way Sweatcoin works now is that for every 1,000 verified steps, one Sweatcoin is given out to that user. The recording device sends raw data to the validator, who then uses an algorithm to look for fraudulent behavior and make sure that only real movement is rewarded.
Non-fungible Tokens (NFTs) built on the protocol will use SWEAT as gas (transaction fees) to transfer them between users. NFTs can also be bought and upgraded using the SWEAT token or by staking the token to secure the network.
When it comes to decentralized finance, the Sweat Wallet will collect fees generated from the buying and selling of crypto, swapping SWEAT into different tokens, staking, and liquidity pools.
SWEAT Token
The Sweat Economy's native utility token is the SWEAT Token. Its purpose is to give people rewards for moving around. Users earn SWEAT tokens by taking steps, which the Sweatcoin app tracks, counts, and turns into tokens.
Right now, you can only earn SWEAT tokens by taking steps, but the platform will add more activities like swimming, biking, and more in the future. The protocol uses the same security systems as the NEAR protocol. SWEAT tokens can be made indefinitely but as time goes on, it will become more difficult for participants to mint the token. This feature was implemented to prevent inflation of the token.
Conclusion
Sweat Economy is an interesting idea for getting people to move around and be more active, whilst earning tokens. The protocol may help fitness-focused users get into the crypto space to explore its liquidity pools, Movement Validators, and non-fungible tokens systems.