Today we are going to look at the Wellness-to-Earn (W2E) model that industry players use to reward users with coins and NFTs for a healthy lifestyle.
If you are actively working in the crypto industry, then you have probably heard about the Play-to-Earn (P2E) model on which blockchain games and meta-versions such as Axie Infinity, Sandbox and Decentraland.
In addition to P2E, there are many new models that investors can use to earn cryptocurrencies, such as Stake-to-Earn, Learn-to-Earn and Create-to-Earn (you can learn more about them here).
What is the Wellness-to-Earn (W2E) model and how does it work?
As the name suggests, the Wellness-to-Earn (W2E) model rewards users for improving their well-being through various activities. They may include:
- Physical exercises
- meditation and mindfulness
- quality sleep
- Forming permanent habits
- Leading a more active social life
- Getting or Giving Mental Health Support
- In principle, any activity that improves physical and psychological health.
As a wellness-to-earn business model, Wellness-to-Earn is a broader term that includes many sub-models such as Move-to-Earn and Sleep-to-Earn. Later, we will look at all these models to explain how they allow users to improve their well-being through various actions and mechanisms.
What every Wellness-to-Earn model has in common is that they allow people to earn native coins, in-app currency, or non-playable tokens for actively participating in a fitness activity. Most W2E apps track progress through an internet-connected device such as a smartphone, fitness tracker, or smartwatch. Ultimately, the user's performance determines (combined with some other factors) how much they can earn from a particular wellness activity.
Of course, since money cannot be printed out of thin air without any negative consequences, Wellness-to-Earn solutions must generate a regular income in order to distribute the coins that are given away to players as a reward. These include:
- NFT, which new users must purchase in order to use the app and be able to earn coins. Like, for example, ordering sports equipment (such as a basketball or exercise bike) or subscribing to a meditation app, this initial payment allows you to start an activity. In many W2E projects, this NMT determines how much you can earn, which means that you will have to spend native tokens to upgrade it and maximize income.
- An alternative solution for the NFT-based entry price is to oblige new participants to buy and stake their own Wellness-to-Earn project tokens within a certain period (for example, three months). Another method is to integrate a mining mechanism that can be used to fund user rewards with the processing power of their devices.
- Market and transaction fees (e.g. NFT sales, activity-related costs)
- Advertising revenue
- Partnerships and promotions
- HMT branded collections
As with P2E solutions, robust tokenomics is critical to ensure the sustainability of Wellness-to-Earn ecosystems.
Regardless of the popularity of the platform, its capabilities or revenues, a project will not be able to distribute rewards to its users in the long term if its native tokens and in-app currencies have been designed inefficiently (Axie Infinity serves as a great example here).
What are the different options for the Wellness-to-Earn model?
Among cryptocurrency business models, the Wellness-to-Earn model is a broader concept that has many variations and sub-options. While their goal is the same - to encourage users to lead a healthier lifestyle - they each focus on different aspects, activities and components related to W2E.
Below we have compiled some W2E-based models that crypto projects use to reward users for improving their wealth:
- Move to Earn: Probably the most popular of all models in the broader W2E category, Move-to-Earn allows users to earn income from regular exercise such as running, swimming, walking and competitive sports. For outdoor workouts, M2E apps use GPS to track each participant's progress and rewards.
Socializing to Earn: A healthy social life is just as important to longevity as exercise, diet, or quitting smoking, according to a study from the University of North Carolina. In order to incentivize people in this field, a growing number of crypto projects have adopted the model - Socialize to Earn, which offers users the opportunity to earn coins simply by chatting, talking and interacting with other people.
- Meditate-to-Earn: Regular meditation can relieve stress, with beneficial effects on both mental and physical health. Unlike conventional apps, which are available for free or by subscription, crypto players use the Meditate-to-Earn model to incorporate the earning mechanism into this healthy activity.
- Sleep to Earn: In the world of cryptocurrencies, you can often find projects that advertise their solutions with the phrase “earn while you sleep.” Interestingly, the Sleep-to-Earn model offers users exactly this, allowing them to receive rewards in the form of tokens in exchange for good sleep and the formation of healthy habits in this area.
- Talk to Earn: The Talk-to-Earn model is primarily focused on improving mental health through consultation with professionals, supporting others in their efforts, and participating in courses aimed at improving the individual's well-being. In addition to participating in these events, some projects offer users crypto-currency rewards for providing valuable data that can help their psychology research.
Improving Health with Cryptocurrency Rewards
At the heart of the Wellness-to-Earn concept is the concept of improving people's health through rewards in native tokens, in-app currency and NFTs that serve as an incentive for active participation.
W2E has many flavors, from Move-to-Earn physical exercise to mental health-focused Sleep-to-Earn and Talk-to-Earn, and takes advantage of blockchain technology and cryptocurrencies to reward users for reaching wellness-related goals.
While the Wellness-to-Earn model has great potential, it must be combined with a well-thought-out concept and robust tokenomics so that users can realize the benefits of this model in the long term.