Move-to-earn blockchain-based application Stepn recently generated $122.5 million in profits in the second quarter through its platform fees — which have made up a growing chunk of revenue, more broadly.
The company said in a medium post that it plans to leverage 5% of GMT’s assets to initiate its buyback and burn program.
They shared that they are considering initiating the program in a few weeks, as they think this news may cause volality on the GMT price.
In the meantime, Blockworks’ Empire podcast hosts spoke with Yawn Rong, co-founder of Stepn, about the company’s rapid growth and its efforts to shift from Web3 to Web2 to remain sustainable.
Rong said about Stepn that by giving tokens, it mobilizes people and helps them mentally and physically.
GST can then be converted into GMT or USD Coin. The more conversions, however, the more it drives down the price of GST, resulting in less potential earnings. Approaching buyback and burn program could lead to reduction in GMT supply. Rong told Blockworks that about roughly 30%, or 210 million, GMT tokens have been completely burned. And they will continue to burn GMT until “we feel it is the time for people to earn the GMT.”
Mike Dudas, founder and general partner at early stage venture capital fund 6th Man Ventures, which invested in Stepn, shared its faith in the app via a Stepn Telegram chat. “They have a roadmap and token model that aims to ensure balance over time in the ecosystem,” Dudas said, adding it’s “very easy to call something new a ponzi scheme.”’
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Dudas mentioned that they had difficulties with the pozni rumors, they were working on it, but they were struggling because of unfair judgments by people and the company won’t share the entirety of a roadmap “with hundreds of potential copycats waiting to pounce.”
Ryan Mullins, CEO of NFT (non-fungible token) sneaker game Aglet, told Blockworks he is skeptical of how sustainable the Stepn model is.
Once the hype dies down and the new influx of players isn’t there anymore, it doesn’t work anymore,” adding that he views it less as a game and more about rewarding a healthy lifestyle.