STEPN

STEPN (GMT) is a Web3 lifestyle app that rewards users for engaging in physical activities such as walking, jogging, and running. The app was founded by Jerry Huang and Yawn Rong, who were inspired by the "X-to-earn" concept. STEPN is built on the Solana blockchain and operates on a dual-token framework, comprising GST (utility token) and GMT (governance token).

STEPN was launched in August 2021 and won the Solana Ignition Hackathon Gaming Track. The project secured a $5 million seed round from investors including Solana Capital, DeFi Alliance, MorningStar Ventures, and Sequoia Capital. The app was developed to motivate users to adopt healthier lifestyles by integrating fitness tracking with cryptocurrency rewards.

The GMT token was launched on March 22, 2022, and has since experienced significant price fluctuations. Despite this, the token has seen impressive growth, with a 78.72% rise over the past month and a 214.92% surge over the past year.

STEPN's roadmap includes several key milestones, such as implementing an activation code to manage user influx, introducing innovations and updates, and fostering integrations and partnerships with renowned brands. The app aims to expand to other layer-one blockchains like Ethereum and Binance Smart Chain, enhancing its cross-platform capabilities.

Overall, STEPN (GMT) has made significant strides in the move-to-earn space, combining fitness and sustainability with cryptocurrency rewards.

STEPN (GMT) is a move-to-earn (M2E) game that incentivizes users to engage in physical activities like walking, jogging, or running while earning cryptocurrency rewards. Here's a detailed overview of how it works:

1. Download the STEPN App: Users download the STEPN app from the App Store or Google Play.
2. Sign Up: Users sign up for STEPN using their email address and receive a verification code.
3. Create a Wallet: Users create a new wallet within the app, which generates a 12-word secret phrase for recovery purposes.
4. Fund the Wallet: Users transfer Solana (SOL) into their in-app wallet to purchase NFT sneakers and cover gas fees.

1. Marketplace: Users browse the STEPN marketplace to purchase NFT sneakers, which are categorized as Walker, Jogger, Runner, or Trainer based on the average speed of the wearer.
2. Attributes: Each sneaker has attributes like resilience, efficiency, comfort, and luck, which affect the user's earning potential and sneaker durability.

1. GPS Tracking: The app tracks the user's movements using GPS, ensuring that they are physically active to earn tokens.
2. Energy: The number of minutes a user can exercise with a sneaker NFT is measured in energy. Energy is replenished daily.
3. GST Tokens: Users earn Green Satoshi Tokens (GST) based on their activity level and sneaker attributes. GST tokens can be used for upgrades, repairs, and other in-app activities.
4. GMT Tokens: Users can switch to earning Green Metaverse Tokens (GMT) once they reach Level 30. GMT tokens are used for governance, leveling up sneakers, and accessing premium content.

1. Marathon Mode: Users can participate in weekly or monthly marathons by registering 24 hours in advance.
2. Background Mode: Users can earn GST tokens offline without repair charges.
3. Token Burn Mechanism: STEPN implements token burn mechanisms for both GMT and GST to manage supply and control inflation.

1. GMT Governance: GMT token holders have voting rights on key platform decisions.
2. Upgrades and Passive Income: Users can upgrade sneakers using GMT tokens, which can unlock enhanced earning capabilities and access to exclusive game modes. They can also stake GMT tokens to earn passive income.

By combining physical activity with cryptocurrency rewards, STEPN aims to motivate users to adopt healthier lifestyles while engaging with the Web3 ecosystem.

STEPN (GMT) has several strengths that contribute to its popularity and effectiveness:

1. Move-to-Earn Concept: STEPN encourages users to engage in physical activities like walking, jogging, and running by rewarding them with tokens. This concept promotes a healthier lifestyle and contributes to a more active community.

2. Dual Token Economy: STEPN operates on a dual token model, featuring both the Green Satoshi Token (GST) and the Green Metaverse Token (GMT). This allows for different functionalities and benefits within the platform, enhancing user experience and engagement.

3. NFT Sneakers: The use of NFT sneakers adds a unique element to the game, allowing users to customize and upgrade their sneakers. This feature also helps to incentivize users to stay active and earn more tokens.

4. Carbon Offsetting: STEPN contributes to combating climate change by offsetting carbon emissions, which aligns with the growing concern for environmental sustainability.

5. Governance Token: The GMT token serves as a governance token, enabling users to participate in decision-making processes and access premium content within the platform.

6. Solana Blockchain: STEPN is built on the Solana blockchain, which offers fast processing times and low transaction costs, making it an efficient and cost-effective platform.

7. Variety of Game Modes: STEPN offers different game modes, including solo, marathon, and background modes, which cater to different user preferences and provide a diverse range of earning opportunities.

These strengths collectively contribute to STEPN's success and appeal, making it a popular choice for those interested in move-to-earn games and web3 lifestyle applications.

STEPN (GMT) carries several risks that investors should be aware of before investing:

1. Volatility: As a relatively new cryptocurrency, STEPN's price can be highly volatile, making it susceptible to sharp and unexpected changes. This is exacerbated by its low market capitalization compared to more established cryptocurrencies like Bitcoin and Ethereum.

2. Limited Track Record: STEPN is still a young project, having launched in March 2022, which means it lacks a long history of performance to gauge its stability and potential for growth.

3. Competition: The crypto market is highly competitive, and STEPN needs to continue generating strong interest to survive. This competition can lead to downward pressure on the price if STEPN fails to maintain its appeal.

4. App Issues: Users have reported difficulties with the app, including problems obtaining activation codes and inaccurate GPS tracking. These issues can deter users and negatively impact the token's value.

5. High Cost of Entry: To fully participate in the app, users need to purchase NFT sneakers, which can be expensive, with the most expensive ones costing up to 10,000 SOL (approximately $650). This high cost can be a barrier to entry for many users.

6. Market Manipulation: InvestorsObserver's risk analysis suggests that STEPN's price can be easily manipulated due to low trading volume and market capitalization, which increases the risk of significant price swings.

7. Risk of Crash: Experts have warned that if STEPN's price breaks support, it could crash by more than 30%, highlighting the potential for significant losses.

8. High-Risk Investment: Cryptocurrencies, including STEPN, are inherently high-risk investments. Investors should be prepared to lose their entire investment if the market turns against them.

These risks underscore the importance of thorough research and a clear understanding of the potential downsides before investing in STEPN (GMT).

• Yawn Rong: Co-founder of Find Satoshi Lab, the fintech studio behind STEPN. He is an Australian entrepreneur operating in the blockchain space and has been credited with the success of Crypto SA, a crypto fund and audit company.
• Jerry Huang: Co-founder of STEPN, a game developer, and founder of Falafel Games. He partnered with Yawn Rong to develop STEPN.