Welcome to ^ᵂᴼᴿᴹᴴᴼᴸᴱ, a series where we take a deep dive into all that’s possible when building on Wormhole. Or, more specifically, all that’s possible when projects raise their xChain functionality to the power of Wormhole.
^ᵂᴼᴿᴹᴴᴼᴸᴱ is pronounced as “raised to the power of Wormhole.”
Today, we’re talking about Sweat Economy.
What is Sweat Economy?
Sweat Economy is a Web3 ecosystem designed to get people moving! It aims to unlock new value for any form of physical activity by leveraging a suite of DeFi, NFT, on-chain and off-chain rewards services.
In 2016, Sweat Economy created their first app — Sweatcoin (a Web2 free-to-use activity tracking mobile app with in-app reward points), which has amassed over 120M downloads and has helped people increase their daily activity. With the launch of the Sweat Wallet app in 2022, they transformed into Web3 and, with over 13M wallets created, immediately became one of the most used dApps.
By using the Sweat Wallet, users receive SWEAT tokens for each step they take. Since a lot of users are transitioning over from Web2, many of them are discovering Web3 features like NFTs, staking, rewards and learn-to-earn for the first time.
What is SWEAT?
SWEAT is a new cryptocurrency you mint with your movement. The SWEAT token powers the Sweat Wallet. Thanks to Wormhole, SWEAT exists on the NEAR and Ethereum platform — but more on that later.
SWEAT is minted solely by verified user movement. To do so, Movement Validators are required to verify the validity of each movement and update the blockchain accordingly.
It works like this: for every verified step, a certain amount of SWEAT (the exact amount changes throughout time as minting difficulty rises) is awarded to the user. The validator receives the raw data from the recording device and implements an algorithm to detect potentially fraudulent behavior to ensure only true movement is rewarded. Any SWEAT holder who stakes the required SWEAT amount can become a Movement Validator. In return, they receive a percentage fee for all transactions they process for their contribution.
Going forward, Sweat Wallet aims to enable established third parties, such as activity trackers, fitness equipment makers, and fitness app developers, to operate as Movement Validators. Examples include FitBit, Apple Watch, Peloton, Garmin, Coros, and more.
Over time, each SWEAT token will require more steps to mint than the last. SWEAT’s tokenomics aim to preserve the token’s utility as the model represents an ever-increasing marginal cost of production and incentivizes users to get moving now.
An interesting aspect is that Sweat Economy is planning to introduce an inactivity fee; once it is run by the Sweat DAO (more on that below), the DAO will charge users a fee if their activity consistently falls below a given threshold.
This measure aims to encourage movement in perpetuity while also contributing to the exponentially decreasing rate of inflation — the exact details of the fee will be left to SWEAT holders who govern the DAO.
Sweatcoin was founded by Oleg Fomenko, Anton Derlyatka, Egor Khmelev, and Henry Child.
Oleg is the CPO of Sweatcoin and acts as the CEO of the Sweatcoin Foundation. He previously worked for Visa, BCG, PepsiCo, and Coca-Cola. Anton is the CEO of Sweatcoin, with former experience at a VC firm, Pepsi and Reebok. Egor, an experienced developer, acts as Sweatcoin’s CTO, while Henry brings the Crypto experience: he previously worked at Bitfinex and Tether.
The Sweat DAO
According to their roadmap, in the coming months, the Foundation will gradually hand over governance to the Sweat DAO.
The DAO aims to generate revenue through:
- NFT Marketplace
- DeFi Functions
- Premium Subscription
- Data Analytics
- Alternative Movement Validators
Those activities will earn revenue for the Sweat DAO, which will be governed by veSWEAT (locked SWEAT for governance). A full explanation of these activities can be found in their Litepaper.
But what about my precious data?
The Sweat DAO will give individuals complete ownership of their data and offer them the opportunity to monetize that data.
Through a dedicated platform, a SWEAT holder will be able to contribute their data to an aggregate data pool, resulting in features such as global activity indices. Insurers, doctors, academic institutions, and investors who pay for this data — and the user, the creator and owner of that data would receive the reward. The DAO plans to collect a fee for running this service.
What’s Wormhole’s role in all this?
Wormhole makes the SWEAT token a true xChain asset! While SWEAT started out as a NEP-141 token on the NEAR blockchain, Wormhole is used to bridge SWEAT to Ethereum, where it now also lives as a native ERC-20 token. Thanks to that effort, SWEAT is now listed on FTX, Bitfinex, Kucoin, OKX, Bybit, and MEXC, some of the biggest centralized exchanges out there.
Going forward, Sweat Economy aims to bridge SWEAT to several other chains, to become truly chain-agnostic. And Wormhole is happy to help!
More from Sweat Economy
Sweat Economy has an easy-to-read litepaper in which they explain their mission and vision for the future.
Stay up to date and check out their socials:
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