Sweat Economy Revives Move-to-Earn Model with Improved Tokenomics

The move-to-earn (M2E) model, which rewards users with cryptocurrency tokens for verified physical activity, was touted as revolutionary in early 2022. However, it collapsed by late 2022 after flagship tokens lost over 90% of their value.

STEPN, a project launched on the Solana blockchain in late 2021, played a significant role in popularizing M2E. Users needed to buy NFT sneakers before earning GST (Green Satoshi Token) by walking or running. The sneaker-gating mechanic created a self-reinforcing demand loop.

However, when new user growth slowed down, the demand side of the GST market contracted faster than the supply side could adjust, leading to a price drop. As prices fell, investment in sneakers declined, reducing demand for GST further.

Sweat Economy, which launched its blockchain layer on top of an existing fitness app called Sweatcoin, took a different approach. It introduced a dual-layer model where users earned loyalty points (Sweatcoins) through steps and could then choose to convert them into SWEAT tokens by opting into the blockchain layer.

By separating the loyalty-point layer from the blockchain token, Sweat Economy reduced its dependency on speculative token demand. The company also introduced Jar products that allowed users to lock SWEAT tokens for fixed periods to earn yield and a Growth fund structure that tied token rewards to engagement metrics rather than raw movement alone.