The Emergence of The Move-to-Earn GameFi Model: Stepn (GMT) Explained
The GameFi sector is set to lead the next wave of crypto adoption and in addition to the play-to-earn model, there is a new player in town: the move-to-earn (M2E) model. One of the leading M2E games is STEPN, which has gained a massive 31,000% in profits since its token sale was conducted on Binance Launchpad on March 2 earlier this year.
What is STEPN?
STEPN is built on the Solana network and describes itself as the “web3 lifestyle app” that rewards users for maintaining a healthy lifestyle through walking, jogging, or running. STEPN was created by Find Satoshi Lab, a fintech firm located in Australia. This project became the winner of the Gaming Track in the 2021 Solana Ignition Hackathon. It’s also a member of the DeFi Alliance Gaming cohort, where DeFi Alliance is a leading Web3 accelerator and founder community.
Move-to-earn is still a relatively new concept, but it is similar to the play-to-earn (P2E) model because it adopts elements of Game-Fi, Social-Fi, and NFTs. However, move-to-earn projects reward users for maintaining healthier lifestyles instead of solely playing games. Other projects that use the M2E model are Step App, GenoPets, and Dustland.
How STEPN works
To start, players have to get an NFT sneaker in order to earn tokens when they move outdoors with GPS.
The sneakers have four attributes:
- Efficiency: boosts GST earnings
- Luck: enhances the mystery box drop rate
- Comfort: enhances GMT earnings
- Resilience: reduces repair costs
Other qualities of a given NFT sneaker include rarity levels ranging from common, uncommon, rare, epic, to legendary. The collection also has four different types of sneakers – walker, jogger, runner, and trainers. The price of each sneaker varies depending on its type, rarity, or level.
Once you have your NFT sneakers set up in the STEPN mobile app, you are all set to start earning through your fitness journey. All you need to do is go outside and start moving with your phone GPS on to begin earning tokens. You can swap the tokens you've earned to SOL or USDC directly from the app. At any time, you can level up your sneakers or sell them on an NFT marketplace.
Like many P2E gaming experiences, STEPN uses a dual token model with both the Green Satoshi Token (GST) and the Green Metaverse Token (GMT). GST is the app’s native utility token which has an unlimited supply, whereas GMT is the governance token with a capped supply of 6 billion tokens. GST has a burning mechanism to control supply using market dynamics, as GST needs to be burned to mint, repair, or upgrade NFT sneakers.
Both GST and GMT can be earned through the game, but that depends on the individual user’s level, activity, and ownership status of the sneakers. For example, a new user who only rents NFT sneakers strictly earns GST, but dedicated users who own upgraded sneakers can also earn GMT.
So how much stepping do you need to do before earning some tokens? The app tracks your movement and 5 minutes of movement generates one energy. Users can see their status on the app interface, which will show their current position, be it walking or jogging. But creators of the game have also thought of all the cheaters out there and using vehicles to earn points is prohibited. If you get in a car and move around, you will receive a notification that you’re “moonwalking,” which means you won’t be earning any tokens as this goes against the purpose of STEPN being a health-promoting community.
Taking the market by storm
While GMT has not been immune to the persistent market downturn that started on November 2021, the token has fared well, all things considering. Like many other crypto hypes in the past, the move-to-earn model is quickly gaining more interest and might even outperform play-to-earn. This has led to a significant increase in the number of users on the STEPN app and more demand for GMT.
There are also rumors going around about potential partnership deals with a major sports brand. The project took it a notch further by sharing artwork containing hidden logos of popular brands Adidas, Nike, Asics, Head, and even Binance. The news spread like wildfire which again led to more demand for GMT. All in all, with a product live in the market and a very active community, the STEPN project is expected to remain front and center in the move-to-earn space.
To learn more about other to-earn models, see the following posts:
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