Is StepN A Ponzi Scheme?

[TL; DR]

StepN is a web3 protocol developed by Jerry Huang and Yawn Rong in August 2021.

The step protocol combines the fitness activity with a reward system.

You earn a reward for buying or renting an NFT sneaker and using it for fitness activities.

StepN was built on the Solana blockchain, and its governance token is Greem Metaverse Token (GMT).

Holders of the GMT token can vote and make suggestions to the governance protocol of StepN.

The stepN protocol has the Non-fungible Token space where you can buy a virtual sneaker or borrow it for some time.

The play and earning a feature of StepN led to the misconception that it is a Ponzi scheme.

StepN is not a Ponzi scheme but a decentralized platform to promote a healthy lifestyle.


Keywords: StepN, protocol, blockchain, play to earn, Ponzi, reward, Green metaverse token (GMT).


[Full Article]


There are no limits to what you can build and launch on the blockchain network. Whatever idea you have, you can make it available to blockchain developers, and the exact prototype will be made.

Most times, developers or investors make a replica of an existing protocol on the blockchain with a slight adjustment. So when developers build an entirely different platform, the blockchain ecosystem seems to have mixed reactions.

This is the case with the StepN protocol. The idea behind this protocol is new, thereby causing a mixed reaction. Some online users take the stepN protocol as a Ponzi scheme. Is it?

Not to worry, we shall identify the idea behind stepN, how it operates on the blockchain network, and decide whether it is a Ponzi scheme or not.

Let's begin!


What Is StepN?

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StepN is a Web3 platform founded by the duo of Jerry Huang and Yawn Rong in August 2021. Jerry Huang and Yawn Rong are the Australian developers who birthed the maiden idea of building the lifestyle app.

The stepN protocol is a blockchain app built to gamify the fitness sector. It is designed to enable you to earn rewards in its native token while engaging in fitness activities.

StepN is a robust web3 platform that combines social finance (SocialFi) with play-to-earn (gameFi) gaming elements. StepN also has a Non-fungible Token (NFT) project based on the move-to-earn concept.

StepN's governance token was released in March 2022 on the Solana blockchain. It is the Green Metaverse Token (GMT). Holders of the GMT token can propose and vote on project developments, treasury distribution, and other decisions on the platform.

StepN, alongside Eizper Chain, Rushdown Revolt, and Titan analytics, were among the prominent winners of the 2021 Solana Ignition Hackathon contest. Shortly after, StepN secured a $5 million funding round led by Sequoia Capital, a private equity giant.


How Does The StepN protocol work?

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The StepN App is solely built to promote an active lifestyle alongside a crypto-based game platform. The application has a marketplace for trading.

Users of the StepN app can mint, buy and sell their NFT sneakers. You can trade badges and gems on the marketplace.

You do not have to mint or buy the NFT sneaker to be able to play the virtual game on StepN; you can rent or lease a sneaker. All you need to do is apply for a rental in the app marketplace, and you will be paired with a lease.

After going through the lease agreement, you enter into a contract that lapses for 24 hours. After that, the NFT sneaker will be returned to the owner (leaser). You can sometimes extend the lease agreement to about 7days with an additional credit rating.

Once you complete the gaming session in solo mode, the StepN smart contract will distribute the earnings based on the rental agreement.

If you have the StepN NFT sneaker and you want to be a leader, you will take the credit rating "scholar" quiz. You are expected to pass ⅖ of the quiz to start renting out sneakers from your collection. Your wallet or account gets capped when you have a credit rating of 5/5.

You might wonder, when you purchase or rent the sneaker, what are you supposed to do with it, or how will you get your reward?


How To “Play And Earn” On StepN

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The first step is to install the StepN application and buy the StepN NFT sneaker on its marketplace or enter a lease agreement with a lease.

The next step is to connect your wallet to the StepN app and transfer the Solana token to your wallet because you can only use SOL to trade on the StepN marketplace.

Once you buy the sneaker, you can activate the gaming feature and commence your fitness journey. The sneaker enables you to jog, walk around, and walk outdoors.

The more you engage in these fitness activities, the more you earn brownie points. The earnings could be in GST (Green Satoshi Token) or (GMT) Green Metaverse Token.

Sometimes, the application will notify you that you are “moonwalking”. This means you are driving a vehicle instead of jogging or walking. In moonwalking, you are merely playing the game to stay fit and healthy. You have no reward or earnings.


Conclusion
The StepN protocol became a subject of the spotlight when the GMT token soared more than 3500% in March 2022. This feat made it ranked among the top-performing web3 protocols in recent times.

The StepN protocol has just a six billion token supply. The supply is limited, and once the six billion is minted on the Solana blockchain, the available GMT tokens will be recycled among the holders.

Having identified how the StepN protocol works and how you can mint your NFT sneaker, rent, and earn the reward, it is crystal clear that the platform works like every other blockchain protocol.

Therefore, this article establishes that StepN is not a Ponzi scheme. It is a gaming platform deployed on the Solana blockchain for its players to stay fit and earn rewards virtually.






Author: Valentine. A, Gate.io Researcher

This article represents only the researcher's views and does not constitute any investment suggestions.

Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.