The ongoing metaverse mania and NFT frenzy continues to grab users’ attention despite recent crypto market crashes. After this, StepN, motivated by the market sentiment and the high user volume, the move-to-earn (M2E) game, makes significant profits.
StepN announced that it earned a profit of $122.5 million in platform fees during the second quarter. After that, the platform is now trying to use 5% of these profits towards buying back and burning its in-game governance token, Green Metaverse Token (GMT), which the players earn only after reaching level 30, along with existing assets such as like — sneaker NFTs that are a requirement to earn in-game cryptocurrencies.
StepN prevents another Axie Infinity fiasco
According to the block† StepN’s to burn its limited supply (600 million coins) governance token, GMT is strange for two reasons. The first point of doubt is that the platform already contains a token with unlimited supply – the in-game currency Green Satoshi Token (GST). In light of this, GST is more likely to experience inflation than GMT.
In addition, the second reason is the underlying nature of Game-Fi projects, which makes it atypical for M2E and P2E games to repurchase their own tokens. However, StepN’s GMT burn movement is expected to turn 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, causing the eventual fall further caused.
StepN was launched by FindSatoshi Lab Ltd after taking third runner-up position at last year’s Solana Ignition hackathon. Following this, the project went live in late 2021 with support for both iOS and Android. It focuses on GPS-tracked movements to collect user activity data, which will later be used in distributing crypto rewards. Nevertheless, the app is also equipped with the penalty feature called ‘moonwalking’ that penalizes rewards if a user cheats to get more crypto.