Tokenizing Payments Through the “Sweat Economy”

Physical activity has long been recognized for its ability to reduce the risk of illness and improve overall performance, making it a valuable asset similar to time or attention. But can the value of physical activity be measured? New research commissioned by the move-to-earn (M2E) project, Sweat Economy, has put a price tag on it.

According to estimates from academics at the University of Birmingham, walking 10,000 steps per day is worth up to $6.25 per individual, translating to more than $2,280 annually. The study estimates that the value of daily physical activity is at least $0.52 per person, with a median value of $3.96.

“Our comprehensive review of the academic literature provides a solid foundation for quantifying the economic benefits of physical activity,” said Mark Elliott, associate professor of human movement analytics at the University of Birmingham and co-leader of the study.

Funded with $60,000 in research grants by Sweat Economy, the study seeks to quantify the economic value of physical activity, opening the door to a new market centered around being active.

From the Attention Economy to the Movement Economy

Sweat Economy co-founder and research initiator Oleg Fomenko explained in an interview with Cointelegraph that physical activity, like attention, is a finite resource. He compared the emerging “movement economy” to the attention economy, which was valued at $7.1 trillion in 2016.

The concept of the attention economy, first introduced by Herbert Simon in the late 1960s, highlighted the economic implications of information overload. Fomenko drew a parallel, stating, “You don’t have unlimited attention, and you don’t have unlimited physical activity.” He questioned why there isn’t already an economy of equal or greater scale built around physical activity.

Quantifying Physical Activity’s Value

Fomenko emphasized the importance of assigning specific numbers to the value of physical activity, suggesting that doing so could create new opportunities for businesses. “Talking about value without specifics is abstract. Once we attach numbers, it starts to attract attention,” he said.

Economic Impact for Governments and Employers

The research findings reveal that an active day not only has value for individuals but also holds financial benefits for governments and employers. Borja del Pozo Cruz from the University of Cádiz and Sebastien Chastin from Glasgow Caledonian University found that an active day contributes $1.96 per person to governments, based on data from the UK’s National Health Service and the National Health and Nutrition Examination Survey.

Additionally, the Hamburg-based Blockchain Research Lab discovered that physically active employees bring an economic value of $4.38 per day, driven by increased productivity.

What Does the Movement Economy Mean for Crypto?

Sweat Economy, founded in 2015 and officially launched in the U.S. in 2023, enables users to earn rewards for their physical activity in the form of the SWEAT cryptocurrency. Fomenko shared that millions of users are currently earning tokens for their daily activity, but with the market price of SWEAT at just 1.2 cents per active day, many are opting to store their tokens in “grow jars” instead of cashing out.

Despite this, Fomenko is optimistic, stating that Sweat Economy is “not far off” from becoming profitable. The company plans to spend 50% of its profits on purchasing SWEAT tokens from the open market. In addition, the platform has secured numerous partnerships aimed at enhancing the value of physical activity within the Sweat Economy ecosystem.

“We’re rewarding users for their physical activity by charging different entities, funneling that revenue back into the value of the token,” Fomenko explained, highlighting the potential for the movement economy to gain traction as a new market.