Product Overview of Sweatcoin
What is Sweatcoin?
Sweatcoin is an innovative mobile app that combines fitness tracking, gamification, and cryptocurrency to incentivize users to adopt healthier lifestyles. Launched in 2014, the app rewards users with a virtual currency, known as Sweatcoins, for engaging in physical activities such as walking, running, and other forms of exercise.
Key Features and Functionality
Earning Mechanism
- Users earn one Sweatcoin for every 1,000 steps taken, which are tracked using the smartphone’s or a wearable device’s GPS and movement sensors. This mechanism ensures that users are rewarded continuously for their physical activity.
Virtual Currency and Marketplace
- The earned Sweatcoins can be used to purchase a variety of products and services from the app’s marketplace. This includes low-value items like free subscriptions to apps and music services, as well as high-value items such as TVs, smartphones, fitness equipment, and athletic footwear. The marketplace offers a daily rotation of products, catering to different user goals and preferences.
SWEAT Token
- In 2022, Sweatcoin introduced the SWEAT token, a cryptocurrency that can be minted using the steps taken by users. There is a daily cap on the number of steps that can be converted into SWEAT tokens (5,000 steps for free users and 6,000 steps for premium users), with the remaining steps converted into Sweatcoins. The difficulty of minting SWEAT tokens increases over time, reducing the rate of inflation.
Verification Algorithm
- To maintain the integrity of the virtual currency, Sweatcoin uses a proprietary algorithm that verifies the steps recorded. This includes a second-level verification using the Global Positioning System (GPS) to ensure that only genuine outdoor steps are rewarded. The app is working on developing algorithms to also reward genuine indoor steps.
User Engagement and Motivation
- The app’s design avoids explicit goal setting, instead making the incentive implicit through the products available in the marketplace. Users are motivated to stay active to earn enough currency to purchase their desired products. This approach has been shown to achieve sustainable physical activity behavior change over a 6-month period.
Additional Features
- Premium Membership: Offers enhanced features such as double reward rates for steps, exclusive promotions, and zero transaction fees when redeeming Sweatcoins.
- Charitable Donations: Users can contribute to charitable events and make donations using their Sweatcoins.
- Privacy-Oriented: The app is designed with user privacy in mind.
- Background Tracking: The app runs in the background, tracking steps without the need for constant user interaction, although this may impact phone battery life.
Business Model
- Sweatcoin generates revenue through strategic partnerships with brands and service providers who pay to feature their products on the app. Additional revenue comes from premium membership subscriptions. This diversified revenue model supports the app’s continuous operation and expansion.
Impact and Benefits
Sweatcoin has successfully promoted healthier lifestyles by incentivizing physical activity. With over 20 million users globally and partnerships with over 300 brands, the app has created a robust ecosystem that benefits both users and partners. The app’s unique approach to combining fitness tracking with cryptocurrency rewards has been recognized for achieving sustainable physical activity behavior change.