Solana-based move-to-earn application amassed $122.5 million in profits through its platform fees in Q2 2022.
According to the official announcement, STEPN plans to use 5% of the profits generated to commence a Q2 GMT buyback and burn program. It said that GMT and sneakers will be part of the program. STEPN also revealed that the entire process of the buyback and burn program may take a few weeks to complete to avoid triggering abrupt volatility in price.
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 previously suffered multiple distributed denial-of-service (DDOS) attacks. To prevent such incidents, the platform said it will double down on security and server enhancements with the profits realized in Q2.
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 Tryst With China
The move-to-earn model is rapidly becoming a major hype which has contributed to the growth of platforms such as STEPN. In April, CryptoPotato reported that its native coin, Green Metaverse Token (GMT), gained more than 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, it backed out from mainland China due to mounting regulatory pressure. The platform announced ceasing IP and GPS-related services to users from the region. The deadline is set for July 15th.
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.