STEPN

What is STEPN (GMT)?

STEPN is a blockchain-based app that combines fitness with gamification and the play-to-earn (P2E) model.

A self-styled “Web3 lifestyle app”, STEPN sells users NFT sneakers, which they can earn in-app currency from while moving, whether that’s walking, running, or jogging outdoors. Using a specific form of P2E called “move to earn” (M2E), STEPN is often compared to the likes of Pokemon Go and Peloton. These comparisons highlight certain aspects of STEPN, including movement and socialization, but incentivization and GameFi are particularly strong features of STEPN.

However, many, if not most, P2E platforms come with a certain barrier to entry. In STEPN’s case, it’s the NFT sneakers. These NFT sneakers have various attributes, and their price can vary depending on the type, quality, and market forces.

The premise here is that a higher quality NFT matched with the appropriate type of exercise will give the user greater rewards. Cryptocurrency market sentiment can also affect the prices of the NFTs since rewards are also paid out in an in-app currency that has real-world value.

When Was STEPN Launched?

STEPN was launched in 2021 and finished 4th out of over 500 projects at the Solana Ignition Hackathon 2021.

STEPN carried out its Initial DEX Offering (IDO) in March 2022. Prior to this IDO, the project raised $5 million in a seed round from venture capitalists, including Sequoia Capital, Solana Capital, DeFi Alliance, and Alameda Research.

Who are the Founders of STEPN?

STEPN was founded by entrepreneurs and neighbors Yawn Rong and Jerry Huang under their company Find Satoshi Lab.

Rong is a cryptocurrency veteran. He served as an ambassador for Algorand and an industry representative of the South Australian Blockchain Association. Rong also founded Crypto SA, an Australian cryptocurrency fund and pro-regulation auditor.

Huang is a game developer and the founder of Falafel Games, a Hong Kong-based studio developing titles for mobile devices.

How Does STEPN Work?

Boiled down to its bare essentials, STEPN allows owners of its NFTs to earn money by walking, running, or jogging outdoors.

However, there are many moving parts to this fairly simple concept that combines blockchain, GameFi, and SocialFi systems with standard mobile phone technology.

The first thing users need to do is download the STEPN app from the iOS App Store or Google Play Store. With this app loaded on their device, users can sign up for STEPN using an email address and verify themselves.

A STEPN wallet can then be created. As with any non-custodial cryptocurrency wallet, users have to take care to store their 12-word secret phrase securely. Once this STEPN wallet is ready, SOL tokens can be transferred in.

SOL tokens are both the currency and gas of the Solana blockchain, on which STEPN is deployed. Therefore, SOL is all that’s needed to buy a sneaker NFT from the STEPN marketplace.

Once a STEPN user has a sneaker NFT in their STEPN wallet, they need to keep an eye on the energy level of the sneaker. At a level of 25% energy, they can start moving and earning.

STEPN has several modes, and its sneaker NFTs have a variety of attributes that influence how users earn from the platform. Users have to move to earn money, and their phone’s GPS is used for “proof of movement.”

How Do You Earn With STEPN?

STEPN’s main mode currently is “solo mode,” although “marathon mode” and “background mode” are currently being fleshed out.

Users’ NFT sneakers have an energy attribute, and 1 energy equates to 5 minutes of movement. As long as the sneaker has recharged its energy and it doesn’t drop to zero, users can earn for walking or running based on this equation.

Sneakers also have an efficiency attribute, which allows users to earn more GST tokens the higher the level. Once a user reaches level 30, they can choose between GST or GMT (Green Metaverse Token) as their earning currency of choice. They can switch between these currencies freely.

One of the other key considerations when it comes to earning from STEPN is the speed of movement. There are three special types of NFT sneakers that correspond to optimal walking, jogging, and running speeds. There is also a fourth type called a “Trainer” that doesn’t have a speed band, but it does tend to be more expensive.

The choice of the shoe should match normal exercise patterns because if a user strays away from their speed band, their earnings can be reduced by up to 90%.

STEPN has a useful earnings calculator that lets you theorize how much you might make from a sneaker with different attributes.

What Makes STEPN Unique?

STEPN is an attempt to bring the Web3 concept of P2E to the realm of personal fitness, executed using blockchain technology.

There are several projects out there that exhibit the power of NFTs and what they can do, but STEPN takes that a step further. The sneaker NFTs that users have to buy can be a significant barrier to entry, but they are also excellent gamification tools.

Sneakers can also be rented, in a variation of the “scholarships” seen on other P2E platforms such as Axie Infinity. They come with a number of attributes beyond those that have already been mentioned, too.

Sneaker quality, for example, defines the maximum and minimum levels at which attributes are assigned when minted. Common sneakers can have efficiency, luck, comfort, or resilience between 1 and 10, but legendary sneakers range from 50 to 112 for the same stats.

Then there’s the sneaker level, where users burn either GST (at first) or GMT (at specific milestones) to boost their sneakers to higher levels. This allows them to assign extra stat points to their sneakers, boosting their earning potential.

Milestones, such as levels 5, 10, 15, etc., unlock certain special functions, including sneaker leasing and sockets. These sockets can be filled with gems, each of which has a type, quality, and so on. These gems help to boost the stats of the sneaker.

STEPN also has a variety of anti-cheating measures, including moonwalking. This ensures that users actually move, and unnatural movement patterns such as having a dog carry a phone or using a scooter aren’t counted towards movement.

How is the STEPN Network Secured?

STEPN’s tokens can be found on three different blockchains: Solana, Binance Chain, and Ethereum. However, the project is primarily based on Solana and relies on the SOL chain for consensus.

Solana is secure because it uses its novel Tower BFT consensus mechanism that combines proof-of-stake (PoS) with proof-of-history (PoH). PoH uses cryptography to establish a trustless source of time on the ledger and maintain a record of previous on-chain events.

The PoH mechanism creates chronological storage of historical data, which ensures that all nodes are synchronous. PoS comes in when it comes to confirming sequences provided by the node structure.

Misbehaving validators are punished by a mechanism called slashing, common to PoS. Validators have to stake, or bond, SOL with the platform to attain their role. These stakes can be confiscated if they misbehave.

What is the Use of GMT?

STEPN uses a dual-token economic model, where the GST token serves as an in-app currency, and the GMT token is the project’s native token. GMT is also used as a governance token on the platform.

The SOL token is also used on the platform for transaction fees, as well as for purchasing sneaker NFTs on the STEPN marketplace.

Who Controls STEPN?

Find Satoshi Lab, founded by STEPN creators Yawn Rong and Jerry Huang, controls STEPN.

How Much GMT Is In Circulation?

GMT has a total maximum supply of 6 billion GMT, out of which 600 million are currently in circulation. This equates to just 10% of the total supply.

STEPN’s IDO saw 7% of its total supply being distributed to investors, and the preceding seed sale handed 16.3% of the GMT supply to venture funds. 14.2% was kept by the team, and advisors got 2.5%.

30% of the 6 billion GMT supply has been earmarked for the ecosystem and treasury, and a further 30% went to Move and Earn, the reserve fund to reward users.

How Do You Buy GMT?

You can buy GMT on various exchanges, including several top-tier cryptocurrency platforms. However, as a Solana-based token, GMT is also available on several decentralized exchanges and DeFi platforms.

Yet, one of the best places to buy GMT may be from within the STEPN wallet itself. Using SOL, you can buy both GMT and GST and use both tokens within the STEPN app’s native wallet.

The app doesn’t have a fiat on-ramp, though, so if you’re looking to buy GMT using a fiat currency, you may need to go through an exchange for GMT directly or for SOL and then GMT using the app.

Is It Possible to Buy GMT Instantly?

You can buy GMT instantly on centralized cryptocurrency platforms, but you can’t use GMT or GST on the app if they’re sitting on a centralized exchange account. You’ll have to send them to your STEPN wallet. This transaction shouldn’t take more than a couple of minutes at most.

How Do You Store GMT?

As hinted at, the STEPN app and the linked wallet are likely going to be one of the best places to store GMT and GST if you’d also like to buy a sneaker NFT and “play” STEPN.

The wallet is easy to set up and simple to use and features a simple interface with easy access to your sneakers as well as the marketplace and wallet.

Within the STEPN app, you can easily access your wallet with a 6-digit PIN. You will also see an associated spending account, which you need to fund with SOL and GST if you want to spend in the game or on the marketplace. You can move funds between your wallet and spending account at will, and although a fee is incurred, Solana is very cheap to use.

STEPN Energy Consumption

STEPN doesn’t have a blockchain of its own and, therefore, can’t really be targeted with the same sort of criticism that the likes of Bitcoin face. Furthermore, STEPN has partnered with Nori to buy carbon removal credits to make up for any emissions from platforms.

Is GMT a Good Investment?

STEPN as a project continues to develop, and Find Satoshi Lab continues to build out the app and ecosystem. However, the hype that STEPN enjoyed in early to mid-2022 has disappeared since both the GMT and GST tokens are significantly off their all-time highs.

While some people may have been earning up to $50 a day during that time, the entry barrier in the form of sneaker NFTs was also extremely prohibitive. Getting into the game cost four-figure sums, but now, just a few months later, you can buy a sneaker for around $30.

In the midst of a crypto downturn, opinions are divided on STEPN. For many, it’s a perfect opportunity to buy a few sneakers on the cheap and get involved. Others are put off by the perceived lack of earning potential, the entry barrier notwithstanding.

Ultimately, STEPN’s future will very much be decided by Find Satoshi Lab. If the company can continue to add value to the project and keep STEPN easy and fun, the GMT token could very well run.