What Is Move-to-earn? Will It Be The Next NFT Trend?
Making money online and working out, two things that seem to have nothing to do with each other are now converging in a hot project recently: Move-to-earn, or M2E. If you’ve heard of this project but do not understand it fully, then, don’t skip this article since Tokenize will take you through the concept of Move-to-earn and its potential in the gaming sector.
What is Move-to-earn (M2E)?
Move-to-Earn is a model that allows users to earn money by walking, running, and other outdoor physical activities. People with mobile devices such as smartwatches or smartphones can use technology to sense and measure their everyday movements. These devices will record information regarding the user’s physical activities. It will then be transformed into in-app assets and valuable rewards.
Okay, here comes a question, isn’t it sound similar to play-to-earn? Yes and no.
Most play-to-earn games need players to first obtain their NFTs for each game before they are permitted to begin playing or earning. The Move-to-Earn model is similar to the Play-to-Earn model, but it focuses on health and fitness, rewarding users for their physical activity.
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Introduction on STEPN
STEPN is a Move-to-Earn gaming app built on the Solana network. The initiative was created with the intention of motivating users to develop a habit of exercising in order to enhance their health as well as earn money via their own physical activities.
The initial condition to earn on STEPN is to purchase a pair of NFT sneakers. When users play the game, the app uses the GPS on their phones to track their movements and pays them with Green Satoshi Tokens, which are in-app tokens (GSTs). Users can then sell these tokens for USD Coin (USDC) or Solana (SOL) to cash out their profits.
The NFT element of initiatives like STEPN has helped it gain popularity in recent years. The project’s founders, FindSatoshi Lab, appear to have long-term goals. The in-game token structure is based on two separate in-app tokens: $GST and $GMT. In which, GMT is the governance token and GST is the utility token that can be used to pay for activities on the application.
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STEPN attempts to solve these problems by using “strong” token sinks. When a new sneaker is leveled up, minted, or repaired, GST is consumed. To avoid a drop in user profits, the repair cost alone is required. It also seeks to imbue in-game products with as much intangible value as possible, such as the societal advantages it provides by encouraging physical exercise.
Not a cheap game to play
However, to most M2E gamers, it is not a cheap game to play. The initial investment which is a pair of NFT shoes seems quite expensive compared to many play-to-earn games.
Without participating in the previous project’s airdrop events, initially joining the game will cost around 18 SOL (approximately $1800 at the time of writing) for a pair of NFT Sneakers. The amount of investment could be a barrier for an inexperienced newcomer in the crypto market. Even veteran investors in the market need to consider before making any decision.
But a modern problem requires a modern solution. There are certain ways to get in for a lower price. The NFT sneakers, for example, can be rented for free, allowing for profit-sharing among numerous participants.
What is the source of funds?
So you may wonder: Where does STEPN’s revenue come from? And how can they provide a regular source of income for users?”
In fact, small taxes on in-app activities like NFT trading, Shoe-minting, and Shoe-rental help the STEPN team make money.
In addition, on January 20, 2022, the STEPN initiative raised $5 million in a Seed round. Big names in the crypto business are participating in this funding round, including Alameda Research, Solana Ventures, Folius Ventures, and Sequoia Capital India.
Meanwhile, Individual users own all assets in the STEPN app, and they receive the majority of the app’s revenue.
In this new gaming subsector, STEPN isn’t alone. Another Solana-based game that is still in testing is Genopets. It’s similar to STEPN, but it’s more of a role-playing game that allows users to progress in the game and level up their Genopets NFT by using physical activity and cognitive exertion. Dustland Runner, a Tezos-based app, allows players to earn DOSE tokens by completing missions during their workouts.
Though the idea of getting paid to walk, jog, or run is enticing, there is still a lot of work to be done in this market. Stay tuned and follow Tokenize Blog for more emerging Blockchain projects and updated market news!
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