SWEAT Economy - A game to incentivise physical activity or just another high APY ponzi? [SERIOUS]

Some of you are probably already walking for SWEAT, many have likely heard of it.

SWEAT Economy is the successor of "Sweatcoin" (Which actually wasn't a crypto,) and want's to be a "Web 3 App" to "monetize user engagement and movement" or "increase physical activity" according to their Litepaper. (If you know all the details already, you can straight up skip to the 3 stars below)

How does it work? You just install the Sweatcoin and Sweat Wallet apps on your phone, give access to your health and steps data and you start earning SWEAT token. Initially you got 1 SWEAT for 1000 steps, but meanwhile the difficulty increased to 1658.8 Steps. Only 5000 steps are counted each day, which can be increased to 6000 steps if you pay for Premium for 4.99$/month.

You can also "stake" your SWEAT by locking them up in "jars" for up to 12 months, to get up to 12% APY on them.

There are also rewards - these are not bought, but randomly raffled among all people holding enough SWEAT in jars. So for example right now there is a giveaway of 1 ETH going on, for which you have to hold at least 125 SWEAT in jars. Also later there will be NFT prizes, which I expect to have a much higher "winning probability", since it's obvious prizes like 1 ETH are a pure marketing thing.

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Remember I said the difficulty is increasing? This is actually the whole point I made this post. Difficultly is right now over 1600, and it started at 1000. In 1 year, the difficulty will be over 9000 steps per SWEAT. If you keep maxing your steps you will earn approximately 650 SWEAT within the next 12 months. And just 150 in the 12 months after that (assuming linear increase). It seems like a relevant amount of SWEAT can only be achieved with walking in the first few months, and after that the only way to get it is either buying or "growing" it in Jars.

My first major criticism is: This app completely failed its goal to increase physical activity. I'm not sporty, like not at all. I work a job that's mostly in office, and I still have my 5000 steps full after coming home on most days. 5000 steps is simply too little to count as any serious incentive for a healthy amount of "physical activity". I really don't get why this couldn't be increased to 10k or even 20k steps to incentivise some real physical activity of people who normally wouldn't move that much.

Second point: With the current increase rate of difficulty to walk for SWEAT, walking will become fully irrelevant in about a year or earlier. After that you will be able to earn more by "growing" than from walking, and this then fully defeats its initial purpose. It even looks like it will just become another "high yield project" after a certain threshold, offering nothing but 12% APY and some fancy NFTs as rewards for holding.

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I know many will now want to post "surprised Pikachu" because of how obvious it was. However I still think the idea in it's core is great and I had fun trying it out - but from my experience and the outlook I'm convinced this project is either either on the way to a terrible failure or just another ponzi.

edit: Its kinda hilarious how half the comments are from people not reading the post and complaining about a single word from the headline, and also completely miss all my arguments for this claim. Classy.

tl;dr: SWEAT Economy is not about selling your token, its about the rewards - and soon it will become impossible to get enough to participate without an initial investment. I'm not saying its a ponzi, I'm saying it's on the way to become one.