The pandemic has changed our world irreversibly, at times for good and, at times, not so much. For every convenience working from home offers, we also miss out on the movement, exercise, and fresh air a trip to work provides us.
For most, that could be a problem, but for Anton Derlyatka and Oleg Fomenko - the founders of Sweatcoin - it was an opportunity. They wanted to encourage people to get moving again and created an app that rewards users with cryptocurrency for every step they take.
Let’s find out everything about the app and if it is as good as it sounds.
How does it work?
Using Sweatcoin is extremely simple. You download the app, sign up and allow it the permissions to track your movement. Then, based on your movement data throughout the day, you are rewarded with a corresponding amount of SWEAT, the native cryptocurrency of the Sweatcoin app. Users can also stake their SWEAT to earn even more returns.
Users may also participate in challenges to increase their earnings. For instance, in October 2022, there is a Sweatcoin race wherein users must complete 2,50,000 steps to earn 25 additional SWEAT. Further, two lucky winners will also receive a $250 Airbnb gift card.
The sweat economy
The Sweatcoin app is not the only one in the move-to-earn arena. Apps like StepN and StepWatch have been around for a while. However, very few of these apps have managed to gain the popularity that Sweatcoin has. Its success can be credited to a smooth and refined app and a system that works intuitively.
The learning curve is almost negligible as people know what they have to do when they look at the dashboard - just walk. Every 1,000 steps grant you one sweatcoin, which will remain the same until the end of next year. After that, it will come down to one-third of a sweatcoin in 2024, which could be further reduced the following year. The token is also listed on some exchanges and might soon make its way to the more popular ones.
The app also has a premium subscription that provides users unlimited 2X earnings. Of course, this comes at a cost of Rs 2,199, to be more specific.
The longevity of the company is highly dependent on the sweat economy. The company has vowed not to sell user data unless the user permits them to do so, and the user also gets paid for it. Additionally, the current running of the company depends on sweatcoin commission that users pay on in-app purchases (5 percent of the coins go to the company).
The company is also trying to integrate a marketplace with collaborations with giants like Reebok and Sonos. If everything goes to plan, you’ll soon be able to purchase sportswear and everything else in exchange for sweatcoin. The app also enjoys seamless integrations with GoogleFit and other smart apparel, increasing its appeal to audiences with smart accessories and the motivation to work out.
The app has been quite successful
In the short while that the app has been around, it has racked up more than 100 million users, making it one of the most active blockchain networks in the world. With such a strong and ever-increasing user base, it is not surprising that the app has dished out over 26 billion tokens so far.
However, the team has its sights on much larger goals, with a target of 1 billion users in the years to come. The app also launched a staking mechanism for SWEAT, which saw more than 45 million dollars worth of the token being staked on the first day, a remarkable feat.
The future of movement
The company seems to be doing everything right up to this point. The downloads, ratings, and users are proof of that - but moving forward, the crypto ecosystem they’re building needs to be able to handle the traffic that is going to come their way. They also want gas fees on transactions of their native token to be a stream of revenue - a possibility if the token passes the rigours of the cryptoverse.
In the future, Sweatcoin also plans to release NFTs, like its counterparts StepN and StepWatch. These NFTs will provide users with better rewards, such as a staking multiplier, higher daily minting limits, etc.
The app also plans to create a DAO, introduce referral bonuses, and build a crypto-to-crypto exchange and an NFT marketplace. Going forward, tiered transaction fees could also be introduced where those frequently transacting in higher amounts will receive lower transaction charges.
Conclusion
What remains an extra appeal of the app is that no one actually loses anything except their lost calories. Also, with SWEAT trading at $0.03972 at the time of writing, it’s fair to say that the current user base isn’t using the app to make money. Rather, it is the gamification of movement that is driving app downloads. People are doing it for the numbers, and if someday the scores and numbers can buy them their new running shoes or a sports watch, even better!
