SWEAT: the tokenomics (phase three)

SWEAT: the tokenomics (phase three)

Originally published for Sweat Economy

Everything in our tokenomics plan is geared towards increasing the rewards of your movement. Phase three will provide immediate rewards and utility for SWEAT holders, while laying the foundations to uplift our longer term goal: the creation and development of an open economy of movement.

Phase three is scheduled for 2023–24. For context, it may be worth reading our blog posts on phase one and phase two, or dipping into the Sweat Litepaper, which we released last week.

Phase three at a glance:

  • Sweat DAO
  • Crypto-crypto exchange
  • NFT marketplace
  • A marketplace of curated offers
  • Tiered transaction fees
  • Higher referral rewards depending on stake, holding, NFT factors

Sweat DAO

What is a DAO? DAO stands for ‘decentralized autonomous organization’. In reality, it is not that complicated. Think of it as a group of people who can collaborate towards a shared goal. There is not a single authority; members vote on decisions. Voting power correlates to the holding of a governance token which, in our case, is veSWEAT. The members of the group do not need to know or trust the other people in the group, because the rules are hard coded in smart contracts on a blockchain.

SWEAT holders will govern the DAO with veSWEAT (locked SWEAT for governance). The DAO will be responsible for important decisions, such as the weight of the inactivity fee.

Most importantly, however, is the governance of the funds held within the Sweat DAO’s treasury. We expect the funds to be enormous, given the size and scope of our mission, and the founding team’s proven ability to successfully monetize user engagement and movement.

As a reminder… here’s the monthly value exchanged for sweatcoins on the in-app marketplace.

In just Q1 of this year, $70M worth was exchanged.

Remember, this has been achieved with an inflationary, centralized, in-app currency. Think of the possibilities with a crypto — open, borderless, and with deflationary mechanics involved.

Below are examples of how the Foundation plans to generate revenue, which will go to the DAO once it is created.

  • User NFTs. Users will be able to purchase and upgrade NFTs with SWEAT, or else by staking considerable amounts of SWEAT.
  • Third party NFT providers will have to pay in SWEAT to sell NFTs to the userbase.
  • DeFi functions. The Sweat Wallet App will offer users a new Web3 experience, including: buying, selling, exchanging crypto, staking, liquidity provision, and more. With the volume of users we have, the accumulated fees will be significant!
  • Access to the audience. Projects who wish to market their tokens or NFTs to the Sweat community will have to pay a fee in SWEAT, and/or give free/heavily-discounted products to our users via our marketplace (see below).
  • Advertising. Any advertiser must pay in SWEAT to access our 80M users. This is extremely valuable to brands.
  • Premium subscription services. Premium subscriptions will include many benefits, such as access to exclusive markets, NFTs, social channels, and more. Users must pay in SWEAT for this service.

There are two more SWEAT generating activities which will be part of phase four. Stay tuned for more information on:

  • Alternative Movement Validators.
  • Data analytics.

Crypto-crypto exchange

Phase three will include integration of the app with CEXs/DEXs. This will enable users to exchange crypto for crypto in the Sweat Wallet App itself.

NFT marketplace

This will allow users to buy and sell NFTs in the app.

Marketplace of curated offers

The Sweatcoin App already has a flourishing marketplace, as indicated by the graph above. We expect to supercharge this feature to offer users access to a range of exclusive discounts, products and services.

Tiered transaction fees

Tiers will likely depend on the tier of a user’s NFT, or else will correlate to the amount of SWEAT they hold/stake. Users with a higher tier will benefit from lower transaction fees on DEX, deposit and withdrawal functions.

Tiered referral rewards

20% of Sweatcoin App growth currently comes from referrals. As above, the tiers will depend on the user’s NFT, or the amount of SWEAT they hold/stake. Higher tiers will receive a higher reward for successfully referring people.

Phase three sets the foundations for the final, ever-evolving stage: phase four. While this may be the final phase in our current roadmap, we view it as the beginning of a new economy. Stay tuned to read all about this final phase!

Start earning crypto for your steps by following this link. To learn more about Sweat Economy, visit our website. For the latest news, make sure to follow us on TwitterDiscordTelegram, and Reddit.

Happy SWEATing,

The Sweat team

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