Solana-based move-to-earn application amassed $122.5 million in profits through its platform fees in Q2 2022.
Deployment of funds
According to the official announcement, STEPN plans to use 5% of the profits generated to launch a GMT buyback and burn program in the second quarter. He clarified that GMT and sneakers will be part of the program. STEPN also revealed that the whole process of the buy-and-burn program could take a few weeks to avoid triggering sudden price volatility.
Alongside, the platform will also allocate capital reserves to ramp up its existing features and build out the team. Branding also remains one of its top priorities as it looks to deploy a portion of the profits towards the development of its physical merchandise lines for marketing purposes. The goal is to enhance overall brand awareness and adoption.
STEPN has already suffered several Distributed Denial of Service (DDOS) attacks. To avoid such incidents, the platform said it would double down on security and server improvements with the profits made in the second quarter.
Improvement with regards to its SMAC (STEPN’s Model for Anti-Cheating), a system that aims to eliminate fake users from and prevent fraudulent motion data on the app, is also one of the key areas of fund deployment.
STEPN’s meeting with China
The move-to-earn model is quickly becoming a major hype that has contributed to the growth of platforms such as STEPN. In April, CryptoPotato reported that its native coin, Green Metaverse Token (GMT), has gained over 30,000% since its token sale was conducted on Binance Launchpad.
The self-proclaimed web3 “lifestyle app” has seen tremendous growth in terms of the number of daily active users since its public beta launch in December 2021.
Despite the success, he withdrew from mainland China due to increasing regulatory pressure. The platform announced the termination of IP and GPS related services to users in the region. The deadline is July 15.
The STEPN team issued a clarification saying it ruled out any business or offered any means for people to download the app within the jurisdiction. Its founder, Jerry H, said Chinese clients only account for 5% of the game’s total user base; hence a ban is not expected to have any significant impact on the business.
