Conclusion: The protocol strikes an interesting balance of being simple enough to explain to a non-crypto person, but thoughtful in its structure under the hood i.e NFTs, App, Token(s), and Utility. Keeping my eye on the inflationary nature of $GST .. read more below.
General Thoughts:
STEPN is a Web3 activate (walking, jogging, running) app with rewards in a move-to-earn economy. Users equip themselves with NFTs in the form of sneakers, which enable them to earn $GST, the protocols native token.
STEPN’s framework is a community (referral) based system powered by a native token(s), app, and marketplace wrapped into one platform.
The Benefit of the STEPN Network:
A common critique of web3 projects is that many don’t deliver real-world utility, i.e #PFP as status (which isn’t a bad thing, just a different value proposition). What sets STEPN apart is that it’s developing something at the intersection of web3 and the real world. Think Helium, but it utilizes an app and your movement vs a miner.
NFTs, Activation, Breeding, Energy:
There are several different types of shoes depending on ones real-world preference for movement.
Walker = 1km/hr – 6km/hr = 4 GST per day
Jogger = 4km/hr – 10km/hr = 5 GST per day
Runner = 8km/hr – 20km/hr = 6 GST per day
Trainer = 1km/hr – 20km/hr = 4-6.25 GST per day
Runner is generally the cheapest as it requires the most work. Trainer is the most popular because of it’s flexibility but it is the most expensive.
In order to join the app (community) one must get an activation code from another member of the community each shoe = 1 activation. This reality forces people to participate in the discord to stumble on a code or be referred by a friend (tremendous idea for network effects). I believe this is partly the reason for the 500k member discord.
Each sneaker has four attributes:
Efficiency: This is important to earn as much GST as possible when moving. In other words, the higher this value, the more you can earn.
Luck: While moving, it is possible to win mystery boxes.
Comfort: Once this reaches level 30, you can earn GMT instead of GST.
Resilience: This has to do with the strength of your sneaker. The higher the resilience, the lower the cost of repairing your shoe.
Minting (Breeding)
A new sneaker is made by minting two existing sneakers. This can be done by anyone owning two actual sneakers. The more times a sneaker has been minted, the more it will cost to use it for minting once again.
Energy (Ability to Earn)
With energy comes the biggest difference in floor price. By default, a common sneaker will give you 2 energy per day, but this number gets +1 if you own an UNCOMMON sneaker.
Energy boost if you own:
- Uncommon sneaker: +1
- Rare sneaker: +2
- Epic sneaker: +3
- Legendary sneaker: +4
Marketplace:
The Marketplace is where users can rent/lease or sell/buy their NFT Sneakers, Badges, and Gems. User can buy and sell NFT, Shoebox and Gems on the app. Renting coming soon: Renters are required to complete a set of “scholar” quizzes to increase their chances of being picked as a renting, after which they will earn 70% of income, with 30% going to the shoe owner.
Let's dive into the pros / cons of the tokenomics:
There are two tokens: $GST (Utility) $GMT (Governance)
Max Supply: ∞ infinity for $GST | $6b
MarketCap: $54m | $1.4b
Fully Diluted Market Cap: $∞ | $14b
Token Distribution
30% - Move to Earn
30% - Eco-System / Treasury
16.3% - Private Sale
14.2% - Team
7% - Binance Launchpad
2.5% - Advisors
Vesting schedule is through 2030, however today they are 10% distributed.
Usage of $GST:
- Governance: $GMT used for voting, burning to improve chances of receiving more or better NFTs, and leveling up.
- Utility: $GST used to pay movers, burned to upgrade / repair sneakers / leveling up, and minting
Conclusion:
The project is extremely innovative in the Move-To-Earn space with very few comps at their level, outside of perhaps @genopets (deep dive tba). The leadership team and VC backing is strong - however, most importantly is the community is seemingly unbelievably loyal to the project (and this has grown as the roadmap has been executed on time and time again).
Growing Questions: As the project progresses through to 2030 here are some things I’m keeping an eye out for: Inflationary nature of the $GST token reminds me a bit of $SLP, if the usage begins to plummet or any part of the burn slows down the team will have to adjust the level of $GST that is created. There is allows an economy risk when the leadership team has to play central government.
Until tomorrow - let me know what you think better or worse. DM with any questions, would love additional #thoughts