The opportunity to be outdoors, engage in physical activity, and make a profit from something we would do anyway is undoubtedly appealing. This is precisely the idea that Jerry Huang and Yan Rong brought to life when they co-founded and launched the StepN app in December 2021. StepN is an activity tracking application that allows users to earn cryptocurrency while exercising.

One application has gained popularity in the world of GameFi, also known as Web3, and has become widely known as "play-to-earn." Axie Infinity was one of the first projects based on the NFT model, where users can increase their earnings by actively participating in a blockchain game.

For a long time, the StepN app enjoyed growing popularity, even despite a cyber attack that occurred in June 2022. At its peak, this young NFT project had over 700,000 active users per month, which is an impressive achievement. However, by May 2023, the number of active users had dropped to 30,000 people. Additionally, the market capitalization of the StepN token and its value currently amount to just over $26 million, compared to $60 million in May 2022.

Considering the recent integration of StepN with Apple Pay and its recent market setbacks, we have created a detailed guide to help you better understand this project and make an informed decision about investing in it.

Contents:

• What is Stepn dapp?
• How does the StepN algorithm work?
• Main ways to earn with StepN
• How to get started with the StepN application
• StepN tokenomics overview
• StepN: Revolutionary prospects for the future

What is Stepn dapp?

StepN is a fitness application similar to other activity tracking apps like Strava, which record the distance covered during workouts. However, with StepN, users have the opportunity to earn cryptocurrency.

The proposed app turns the fitness process into an engaging game while unlocking the potential for earning based on several factors. StepN cleverly leverages the existing demographic of fitness enthusiasts and inspires others to join in physical activities. According to the StepN technical document, the app also offers an easy way to explore the complex world of cryptography and NFT for those who have had no prior experience with Web3.

The underlying idea behind StepN is intriguing, but it is not without potential risks, which we will discuss later. Let's first explore how this app works, how to get started with it, and why it effectively helps users exercise and earn cryptocurrency.

How does the StepN algorithm work?

To use the StepN app for fitness workouts, you simply need to open it before starting your walking or running session. Currently, only the individual training mode is available, while the other two modes are still under development. The app utilizes GPS to track your movements, so it cannot be used on treadmills or elliptical machines. Make sure you go outside to perform your exercises and use the app.

Before starting your movement, you need to select digital footwear that matches your planned level of activity. If your speed exceeds the activity range corresponding to the chosen footwear, you will not receive tokens. Therefore, choose your footwear carefully. The available levels of activity are as follows:

During your training, you earn in-game currency called StepN and GST (Green Satoshi Token) for every minute of physical activity. This application is designed to detect natural movements, so trying to cheat the system by riding an electric scooter to earn money is not possible (there are mechanisms in place to prevent such fraudulent attempts). The time during which you can earn GST within one training session is limited by your energy, which depends on the quantity and type of your NFT sneakers.

Let's say you have a regular sneaker, and you possess two Energy Units. Each Energy Unit represents five minutes of earning potential. The more sneakers you have and own, the more time you can spend on movement and earning. For example, if you have three sneakers, you have four Energy Units, which equals 20 minutes of potential earnings. And if you have nine sneakers, you will have nine Energy Units, which amounts to 45 minutes of possible earnings, and so on.

High-quality and unique sneakers also increase your energy. Unusual, rare, epic, and legendary sneaker models give you the ability to earn one, two, three, or four units of energy, respectively. So, if you have two rare models and one regular one, the total energy count will be eight units (four base plus four additional), and you'll be able to earn GST for 40 minutes per workout.

Main ways to earn with StepN

The significance lies not only in the duration of how much you can earn but how much you can actually earn using this application. The income you can achieve depends on four key characteristics of sneakers:

• Efficiency
• Luck
• Stability
• Comfort

Efficiency plays a crucial role as more advanced sneakers allow you to earn more tokens during sports activities. Increasing Luck introduces uncertainty into the rewards. If you have higher Energy and Luck, you have a greater chance of receiving a Mysterious Box at the end of your workout. These boxes contain valuable gemstones that can enhance the functionality of your sneakers, such as improving efficiency. You can also sell these gemstones on the StepN trading platform within the app.

Stability describes the rate of wear and tear on your NFT sneakers. If you occasionally use GST to repair your footwear, they will lose their value and eventually cease to exist. Users who strive for movement and earning face a problem: the more they use their shoes, the faster they deteriorate. This interesting aspect of the game forces players to develop a strategy for achieving success.

As of May 2023, the value of 1 GST is approximately $0.015 USD, significantly lower than the peak reached in April 2022, which was $8.51 USD. The NFT sneakers from the base set in StepN yield 5 GST for every unit of energy, allowing you to earn $0.07 for each walk or run at the simplest level.

While many may find the idea of earning the maximum number of GST tokens and cashing them out appealing, the game actually helps people reinvest their tokens back into the system to improve and repair their shoes, thereby increasing their profitability. Additionally, you can create a new sneaker model by combining two pairs that you already have. This is a gamified way to expand your range, and such an operation can only be performed with more advanced sneakers that have reached the fifth level and above.

Comfort is the final of the four characteristics into which StepN introduces its new control element - the Green MetaToken (GMT). Only sneakers that have reached the 30th level and possess at least three energies have the ability to earn GMT. At this level, you have a choice - continue earning GST or switch to GMT. GMT can be used for various purposes, such as renaming your sneakers, increasing their level, and reallocating attribute points.

How to get started with the StepN application

After installing the StepN application, you will need a pair of NFT sneakers to start earning. You can purchase them on the app's internal marketplace. There is also an option to buy sneakers on Binance. In 2022, ASICS collaborated with StepN and released a limited series of NFT sneakers, which were available for purchase on that exchange. StepN sneakers can also be found on other marketplaces like OpenSea and Magic Eden. However, some users have reported issues such as the purchased footwear not appearing in the app. Therefore, it is recommended to use the StepN marketplace to avoid such problems.

Since StepN operates on the Solana blockchain, you will need SOL to use the application. In May 2023, the most affordable sneakers cost about 0.138 SOL (approximately $2.69). When prices were higher, StepN announced an upcoming leasing feature that would allow users to rent sneakers from other users and share the earned cryptocurrency.

To gain access, you will need an activation code provided by a current StepN user. However, finding such a code can be a challenging task, and sometimes it can be found in the StepN Discord community. It is recommended to reach out to users directly and ask for an activation code, and the preferred method is to obtain it from the community.

After receiving the activation code, you will set up your wallet in the application and transfer a certain amount of SOL to it. You have the option to import an existing wallet, but if security is important to you, it is recommended to use the built-in option in the application. Then you will move SOL from your wallet to a spending account that will be used for spending GST on in-game actions.

When you go for a walk, run, or jog, you launch the application, select the sports shoes that match your planned speed of movement, and start moving, improving your physical fitness.

StepN tokenomics overview

Projects related to the "Play to Earn" concept in the GameFi space often raise concerns about their sustainability and are even accused of being pyramid schemes. One example of such a project is Axie Infinity, as its token (AXS) was unable to sustain its long-term price growth and dropped to less than six dollars in May 2023 after reaching its peak at 165.37 dollars in November 2021.

To turn the StepN application into a long-term project, it is necessary to attract a sufficient number of new users to replace those who are leaving the app or make the game so engaging that players choose to continue using it despite the option to cash out their token earnings.

One important challenge is the development of a long-term-oriented tokenomics model. Examples of such models can be found in some games, including Axie Infinity, Crypto Raiders, and others, where users can earn tokens. These games employ two types of tokens. The first token is called GST and represents an in-game utility token used for purposes like repairing sneakers. The second token is called GMT and, while it also has some in-game functions, it can be considered more as an investment token.

The game structure encourages users to return GST back into the system, as it is likely to lead to greater profits than simply trying to earn as much as possible by selling level-zero sneakers and cashing them out. Additionally, apart from repairing and upgrading sneakers, users also spend a significant amount of GST on minting new sneakers, which costs at least 200 GST and can even be higher. By employing this approach, players contribute to preserving the value of these items without withdrawing GST from the system without increasing the availability of sneakers.

One of the main issues is that the functionality of GST is directly focused on increasing the ability to earn GST, which can become a potential source of problems in the future. StepN needs to find ways to address this problem if they want to maintain their financial stability.

A total of six billion GMT tokens will be issued and distributed among various community members, the StepN ecosystem treasury, as well as through public and private sales, the StepN team, and consultants. The StepN LitePaper provides a visual chart that helps to better understand the percentage of tokens allocated to each of these groups in the future. This ensures a level of transparency that is rare in the cryptocurrency space.

The tokens from StepN's private round were not unlocked until 2023, which took a whole three years. This slow token release process clearly demonstrates StepN's commitment to long-term existence.

Another problem arises concerning NFT sneakers in StepN. Despite the fact that creating new sneakers requires a significant number of tokens, StepN cannot allow its users to endlessly release new models without risking the loss of their value. Without the ability to destroy sneakers to remove them from the ecosystem, the application faces the same fate as Axie Infinity.

StepN: Revolutionary prospects for the future

StepN is a unique NFT project that combines a remarkable amount of concern and optimism, as well as the concept of an "exercise for earning" app. If the project can overcome the issues that currently seem to plague it, it has the potential to become a massive success in the world of NFTs. It should be noted that both GST and GMT continue to lose value.

In May 2023, the company STEPN made significant efforts to attract the attention of those who were previously uninterested in cryptocurrency. One important step taken in the blockchain gaming industry was the integration with Apple Pay. This provides potential users with convenient access to STEPN products and is likely to contribute to the growth of the user base, which had been declining since May 2022.

Integration eliminates the need for users to connect a cryptocurrency wallet to conduct transactions within the application. Now users have the option to add their credit or debit card information to their Apple Wallet, reducing the complexities of the transaction process and enhancing payment security, as card information is not stored directly within the application. Rong and Huang, the co-founders of the project, expect that this innovation will increase the accessibility of Web3 technology, merge the functionalities of Web2 and Web3, and contribute to the development of the Web3 sphere.

If you are willing to take significant risks in an effort to earn cryptocurrency and even ready to leave your home and relocate, then StepN may be for you. However, always remember that it's important to conduct your own research and invest wisely, without risking more than you can afford to lose. If all of the above sounds appealing to you, I wish you good luck on your path to earning and success in this field.