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NFT traders STEPN into a new groove — Does move-to-earn represent the future of fitness?

AxieInfinity was the pioneer of the play to earn movement. The project inspired new Web3 apps that aim to adapt the earning model to their own ecosystems.

STEPN is the latest project to join move-to earn. It’s a Web3-based application that lets NFT sneakers owners earn as they walk.

STEPN has programmed a few factors that determine just how much a person can make with its sneakers and the Green Satoshi Token (GST) is STEPN’s in-game token that currently trades for $7.30. Over the last 30-days the token has surged over 77%, but is it sustainable?

GST monthly price action. Source: CoinGecko

What’s interesting about the move-to-earn phenomenon is that it’s essentially a form of P2E since it gamified fitness through a digital asset (the sneaker). No matter how you slice it, NFT holders must participate in the application mechanics to earn the reward.

While STEPN may be making big profits now for investors, there are already a lot of other competitors and new earning models that could soon make it a passing fad. Play-to-earn was all the rage in 2021 but now that movement is a mere shadow of its former self. Investors should question the viability of the move to earn trend.

Move-to-earn Dapps go parabolic

Incentivizing behavior is not a novel concept, especially in the health and fitness space. In fact, SweatCoin, a project founded in 2018, was one of the first applications that would pay its users digital currency to exercise.

There are also other crypto-fitness apps like Dotmoovs and Calo, which each have their own reward tokens. STEPN is not the first to revive this movement.

The project is in beta and new users will need a code in order to participate. STEPN’s branding and packaging strategy was a popular one among NFT and crypto pundits. It also saw a significant increase in its upward growth. Cumulatively, STEPN has amassed over 200,000 users over its lifetime with consistent volume. In the last 7 days over 32,800 new sneakers have been minted.

Cumulative number of STEPN shoes minted. Source: DuneAnalytics

On average, a STEPN sneaker can earn a user up to $20 per day, while a premium tier sneaker can make users hundreds of dollars at the current price of GST. Similar to Axie Infinity users will need to make an initial capital investment in order to start earning rewards. There were 99,999 NFT sneakers available for mint, but just like Axie Infinity, users can breed their sneakers during sneaker minting events (SME).

Currently on Magic Eden, a secondary marketplace, the cheapest STEPN sneaker is on sale for 16. 56 SOL ($1,628) and the most expensive is 300 SOL ($29,493). There are many types of sneakers, as well as tiers and levels of attributes that a sneaker can acquire. These have an impact on how much it can produce. Earnings are influenced by the strength and durability of a user’s global positioning system (GPS). If the signal or GPS is choppy, it is impossible to guarantee data recording. STEPN relies upon knowing how far a person has walked in order to reward them with rewards.

2/n Currently to earn tokens (GST) in #STEPN, the walking / running requirement is quite low. I earned ~USD40 with 10 mins of walk daily so it’s pretty chill. You must only go outdoors when the GPS signal is strong. That’s how the steps are calculated for GST

— Smallveggie | TMA (@small_veggie) April 17, 2022

STEPN currently has beta and new users will need a code in order to participate. It has enjoyed a surge in growth and popularity with NFT and crypto pundits thanks to its branding and packaging of move-to-earn.

Cumulatively, STEPN has amassed over 223,500 users and it currently dominates the move-to-earn landscape in total market capitalization. Its governance token, Green Metaverse Token (GMT), is over 20xs that of all other movement economy tokens combined making it a desirable bet.

Web3 applications lace up for the race

STEPN is not alone in the move-to-earn race, and recently Step App, a dapp on Avalanche blockchain, emerged as a competitor aiming to tap into the $100 billion fitness industry.

Step app has multiple token emissions, with FITFI being a governance token, and KCAL being an in-game token. Token emission of any type can lead to a vacuum that could be used for value extraction. Step App will incorporate token sinks in its tokenomics. Burning mechanisms will permanently remove tokens from circulation to reduce the risk of inflation.

Step App will create a software development tool that allows others to build within its Metaverse, unlike STEPN or Sweat Coin. It is Web3-friendly and may help to reduce bottlenecks that could hinder the product’s overall scaleability.

Step App Memorandum is Live

The Step Protocol SDK is the foundation of the #FitFi economy.

FitFi is at the heart of the $100B fitness and the $200B gaming markets. Developers, projects, and Fortune 500 corporations will join FitFi, as they did with #GameFi.

pic.twitter.com/afSqNz2HRI

— Step.App (@StepApp_) April 23, 2022

It is still unclear how these move-to earn applications will combat the saturation and how their token mechanics will be able to sustain a healthy price point after they are serving millions of users. A potential drop in active users is also possible due to the fact that maintaining exercise routines is more dependent on habit-building and intrinsic motivations than external rewards.

Because most move-to earn applications require capital upfront users need to be aware of price volatility, growth, saturation, and saturation of the movement economy, as well as the level of activity needed to break even or make a profit.

Turning physical activity into profit can become more difficult as the move-to earnn ecosystem grows and becomes more popular. This can impact the token price and increase the cost of entry, as more people are trying to convert their physical activity into cash. These applications seek to combat the manipulation of fraudulent inputs in order to maximize earnings.

Move-to-earn apps are theoretically well-designed to promote health and wellness. These models are successful because they incentivize and, in effect, attempt to change behavior to create habits.

Studies have shown that people are more likely to form habits through intrinsic motivations, which are difficult to quantify.

The views and opinions expressed in this article are the author’s alone and do not necessarily reflect those of Cointelegraph.com. You should do your research before making any investment or trading decision.

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Henry Hicks
Henry Hickshttps://nonfungibletalk.com
NFT and Crypto Enthusiast. Loves Travelling and Exploring the Metaverse!
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