The 30 million SWEAT tokens burned represent about 1.1% of the total supply right now. It is also the first of several burn events expected to roll out in the coming weeks.
🔥Burn announcement 🔥
The Sweat Foundation has just completed a new SWEAT burn!
• Total number of SWEAT burned: 30,000,000
• Percentage of total circulating supply burned: 1.1%
Verify on-chain: https://t.co/Wtf43qubUW
First of many! We're just getting started!
— Sweat Еconomy 💧 (@SweatEconomy) October 4, 2022
The SWEAT Token Burn: Important Details
The Sweat Foundation made a long-term commitment to burn SWEAT in this post published on September 15th. In fact, the popular move-to-earn platform has committed at least 50% of its profits to burn SWEAT.
This means that the Sweat Foundation will use its money to buy SWEAT tokens in secondary markets. The foundation will then remove these tokens out of supply.
The primary goal of this burn strategy is to prevent price dilution. Reducing the number of SWEAT tokens in supply enhances the value of those that exist. The burn strategy is also part of a broader vision to make SWEAT a more sustainable asset for the community.
4.76 billion SWEAT Tokens Burned at Launch
The recent burn of 30 million tokens may seem big. But it’s actually not even close. When SWEAT was officially launched through a TGE in September, the Sweat Foundation burned nearly 4.76 billion SWEAT tokens immediately after.
This represents around 18% of the total SWEAT supply. It was also one of the biggest burn events in crypto. The 4.76 billion burn event was, however, somewhat of a necessity.
4.76BN SWEAT (18%) burned on-chain 🔥
As promised, Sweat Foundation Treasury and SweatCo immediately burned a combined 4.76BN of their SWEAT on-chain!
Supply burn -18%💧
— Sweat Еconomy 💧 (@SweatEconomy) September 14, 2022
When Sweatcoin announced it would transition into web3, it gave the community a chance to earn SWEAT ahead of the official TGE. The goal was to ensure that once Sweat Economy goes live, all earned SWEAT tokens would be sent automatically to wallets. At the time, there were over 13 million Sweat Wallets.
Matching All Sweatcoins
Also, the Sweat Foundation made a commitment to match all SWEAT tokens minted at TGE to the total number of Sweatcoins ever generated. According to initial estimates, this would mean that the foundation needed to mint 21 billion SWEAT tokens.
However, due to project delays, the number of Sweatcoins generated at the time of the TGE exceeded the 21 billion mint target. In fact, nearly 26 billion Sweatcoins had been generated before the launch.
But instead of going back on its promise to match SWEAT token mints to the total Sweatcoins ever generated, the Sweat Foundation decided to mint 25 billion SWEAT at TGE. The foundation also started burning almost 4.76 billion tokens immediately after.
That way, Sweat Economy managed to meet both expectations. On the one hand, 21 billion tokens were released, while the TGE also matched all Sweatcoins ever created.
When Will the Next Burn Event Launch?
There is no indication of when the next SWEAT burning event will occur. The fact that the Sweat Foundation has just burned 30 million tokens is a big deal. But the move-to-earn project is yet to comment on how often it intends to do these burn events.
Nonetheless, it is worth noting that 1.1% of the total SWEAT supply has now been removed from circulation. The Sweat Foundation will probably stick to this threshold to keep the burn strategy sustainable.
In fact, we will unlikely see a big burn event like the one we saw after the TGE. But the long-term commitment the Sweat Foundation has already put in place means that burn events will define the token strategy in the long term.
How The Sweat Foundation Wants to Supercharge SWEAT
The plan is to transition SWEAT as the governance token in the near term. To this effect, the Sweat Foundation has put in place a few measures to supercharge the token to greatness.
Although 21 billion SWEAT tokens were launched in the September Token Generation Event, they did not immediately go into circulation. As we speak, only 10% of these tokens are in circulation.
The rest will be released into the market gradually over the next two years. This will help reduce any possible risk of serious token inflation.
SWEAT Token Staking
The Sweat Foundation has also made SWEAT staking an integral part of its M2E ecosystem. The staking program is done within the Sweat Wallet.
Earn up to 12% yield on your SWEAT in the Sweat Wallet app! Stake SWEAT now in the 'Grow' feature!💧
— Sweat Еconomy 💧 (@SweatEconomy) September 17, 2022
So far, it’s been a huge success. In the most recent update, over 60 million SWEAT tokens had already been staked. The Sweat Foundation has also released a series of incentives and rewards to encourage more staking in the future.
A spree of Major Listings
For most new coins, it takes months before listing in some of the leading crypto exchanges in the world. But for SWEAT, the listing came almost instantly after the TGE.
OKX will be the first exchange to list SWEAT, Tuesday 13th September 8:00am (UTC)!
Trading pair: SWEAT:USDT
SWEAT (ERC-20) deposits are open @okx
— Sweat Еconomy 💧 (@SweatEconomy) September 12, 2022
In fact, SWEAT is now available in some of the biggest exchanges in the world, including the leading DEX Uniswap. This is designed to give the community and investors alike easy access to the token.
The Sweat Foundation has also designed the SWEAT token to be deflationary in nature. You see, SWEAT can only be minted through movement or through staking yields. It will become harder to mint these tokens as time goes by.
This means, therefore, that the token is deflationary. Its value is designed to increase over time. Since the total SWEAT supply is unlimited, creating this deflationary mechanism ensures that the token value is protected in the long term.