In only 16 weeks, the Sweat Community has created 11.5 million Sweat Wallets.
We designed SWEAT as a cryptocurrency for everyone: minted by movement, with no investment required.
Mainstream adoption has many implications for token economics. Millions of people will hold SWEAT. Millions will be minting it daily.
We have carefully designed the supply of SWEAT to enhance the token’s utility.
In this article, we will cover:
- The big burn
- TGE lockdrop
- SWEAT distribution
- SWEAT unlock
- SWEAT minting difficulty increase
- Inactivity fee burn
Note: the numbers given below are based on our current estimates, and are subject to change. We will notify the community of updates as appropriate. These numbers are more recent than those in the Litepaper, which is currently being updated.
The big burn
We recently announced an enormous burn of 4BN sweatcoins. Because, at TGE, we will mint enough SWEAT to match all sweatcoins in existence, this represents a significant burning of SWEAT.
Based on our current estimates, the sweatcoin burn will reduce the SWEAT supply at TGE by about 15%.
At the Token Generation Event (TGE) on September 12th, we will gift community members SWEAT to match their sweatcoins. It is a one-time offer to kickstart a crypto revolution.
We cannot predict the exact number of tokens that will be airdropped. This depends on how much the community walks between now and TGE.
The airdrop is really a ‘lockdrop’: the majority of the tokens will not be liquid, but unlock bit by bit over time.
For the TGE tokens:
- 10% will be liquid at TGE
- 90% will unlock linearly over the following 24 months
SWEAT distribution and unlock
The pie chart below shows the distribution of SWEAT.
The table shows allocation, cliff and unlock periods.
- max 25%. Unclaimed lockdrop tokens go to Foundation Treasury, until it has 30% of TGE tokens. After Treasury has 30%, unclaimed tokens will be burned.
SWEAT unlock graph
The graph below demonstrates the various unlock periods for each party that holds SWEAT from TGE onwards.
SWEAT minting difficulty increase
SWEAT will become exponentially more difficult to mint with time. The supply of SWEAT is uncapped, so that people can mint SWEAT forever.
The increasing minting difficulty will increase the scarcity of SWEAT. The effect will be rapid, and in real-time.
The graphic above is an estimate based on our current projections. The increase in minting difficulty is a function solely of the total SWEAT already minted, not of time itself. This makes the minting difficulty responsive to changes in demand. We use time for ease of reference.
The TGE represents a very good deal for users. Because 1,000 steps = 1 sweatcoin, and because 1 sweatcoin = 1 SWEAT at TGE, users can effectively mint 1 SWEAT with 1,000 steps.
This is a one-time deal. After TGE, every next SWEAT will require more steps to mint than the one before it. The difficulty increase will occur in real time. Your morning walk is worth more than your evening walk.
We have already announced the introduction of an inactivity fee. Not only does this support our mission of making the world move more, it is an important mechanic to reduce circulating supply. If a user’s activity consistently falls below a given threshold, they will receive less SWEAT.
This is a way of reducing token emissions. We will be introducing more mechanics to decrease the amount of SWEAT in circulation.
Stay tuned for an upcoming article on the demand of SWEAT.
For now, 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 Twitter, Discord, Telegram, and Reddit.