Business model and revenue streams
Sense4FIT employs four different revenue streams, in order to sustain its reward system, but further options are also considered to raise funds.
The first main source of revenue stems from NFT sales. Purchasing a Sense4FIT NFT acts as your gateway to the app, allowing you to get rewarded for your workouts. NFTs are also a source of recurrent purchases from users, namely through Power-ups and Mystery Boxes. By upgrading the NFTs, users will enhance their rewards potential, creating further incentives.
Purchasing an NFT will not allow you to benefit from the full functionalities of the Sense4FIT ecosystem, requiring the use of a partner Fitness Tracker, mentioned in the Proof-of-Activity subchapter. The tracker is essential in tracking one’s fitness progress and ensuring fair rewards are paid out to users. Within the Sense4FIT apps, we will be selling partner wrist trackers, which will be priced both in FIAT and $SFIT tokens, at a slightly lower price than retail. Thus, a user could be paying 85% of the price in FIAT, with the rest in $SFIT, creating additional utility for the token. Moreover, other devices such as a chest monitor could be ordered for better tracking of results, again representing a potential inflow of funds.
Challenges are also an important revenue stream since, in order to partake, users have to lock in their funds beforehand. Thus, a user locks in their $SFIT tokens, and upon completion, the funds will be unlocked, with a reward added on top. The rewards come from the Challenge Pool, consisting of the funds of users who have failed to complete the challenge. Team Challenges are also an important factor for revenues, since they act as a 0-sum game, with multiple participants. To put it simply, the team who has failed their challenge loses all their funds, whereas the victors receive a reward percentage on top of their locked funds, with Sense4FIT collecting its fair share as well. Team Challenges thus ensure that no mismatch occurs between the number of successful users and those who have fallen short of completing the challenge.
With the subsequent development of the Sense4FIT ecosystem, there will be a platform component. We will be adding the Coach-on-Demand concept, connecting top fitness professionals (i.e. nutritionists, coaches, wellness mentors) with users on their fitness journey. Thus, users could purchase personalized fitness classes, nutrition consultations and tailored recipes, with payment performed in the native $SFIT token. Sense4FIT will get a percentage from any transaction, acting as a Platform Fee, and as our ecosystem gains further adoption, this will become a sizable source of potential income.
Lastly, we are also considering a Watch2Earn model to be implemented in order to maintain a certain level of rewards for users who do not complete challenges or fall short of their objectives in single mode, or nutrition and mindfulness. Since Sense4FIT does not collect user personal information, we do not sell private data, thus we will not display any targeted ads. Our ad vetting process is very strict, as we aim to only show relevant and interesting content for our users.
Advertising space will only be provided to partners from fitness and nutrition, as well as promising crypto and blockchain projects, ensuring the highest quality content for the Sense4FIT users. The Watch2Earn model will not become commonplace, since Sense4FIT believes users should surpass themselves. Nevertheless, we understand that people cannot be at 100% at all times, meaning that there might be nights when they do not record 8 hours of sleep, or have the occasional cheat meal. For this reason, we want to offer a free pass for these rare cases.
AR and VR workouts are also considered currently within the Revenue model, with future plans to roll out the Fitnessverse. We are looking for metaverse applicability for the fitness space, with us exploring various infrastructure models. In the future, we foresee that Sense4FIT will become a potential incubator for gamification crypto projects, employing the Move2Earn or Fit2Earn model, which will definitely disrupt traditional fitness. Thus, many projects could launch on an already developed ecosystem, namely Sense4FIT.
The tokenization of real life assets has become a growing trend recently, with real-estate finding a high applicability. The Gym and Fitness sector was until recently heavily reliant on physical locations, with very high costs for location rentals and maintenance. Sense4FIT aims to disrupt this and offer the option of tokenized gyms, which will be present in the Fitnessverse area we are planning to develop. For now this initiative is still in an incipient stage, with details to be provided at a later date.