The ongoing metaverse mania and NFT frenzy continue to catch user attention despite recent crypto market crashes. Following this, motivated by market sentiment and high user volume, the move-to-earn (M2E) game, StepN is making hefty profits.
StepN announced that it earned profits worth $122.5 million in platform fees during Q2. After which, the platform is now seeking to utilize 5% of these gains toward buying back and burning its in-game governance token, Green Metaverse Token (GMT), which the players only earn after reaching level 30, along with existing assets such as — sneaker NFTs that are a prerequisite to begin earning in-game cryptocurrencies.
StepN Prevents Another Axie Infinity Fiasco
According to the block, StepN’s move to burn its limited supply (600 million coins) governance token, GMT is odd because of two reasons. The first point of doubt is, that the platform already comprises a token with unlimited supply — its in-game currency Green Satoshi Token (GST). In light of this, there lies a higher probability for GST to face inflation as opposed to GMT.
Furthermore, the second reason is the underlying nature of Game-Fi projects, which makes it atypical for M2E and P2E games to re-buy their own tokens. However, StepN’s GMT burn move is expected to pivot away from in-game token inflation which had historically created a disparity in the issuance-to-burn ratios of play-to-earn (P2E) giant, Axie Infinity, further triggering its eventual fall.
StepN was launched by FindSatoshi Lab Ltd after it secured the third runner-up position at last year’s Solana Ignition hackathon. Following this, the project went live toward the end of 2021 with support for both, iOS and Android. It focuses on GPS-tracked movement to gather user activity data, which is later used while distributing crypto rewards. Nevertheless, the app is also equipped with the penalty feature titled ‘moonwalking’ that penalizes rewards if a user cheats to gain more crypto.