Stepn (GMT)

Move-to-Earn Fitness App

Stepn is a Web3 lifestyle app on the Solana blockchain that encourages users to walk, jog, or run outdoors. Users buy NFT sneakers and earn crypto rewards (GST tokens) based on their physical activity. The app tracks movement and rewards users for staying active.

Token Utility

Stepn uses a dual token system: GST and GMT. GST is earned by moving and used for in-app activities like repairing or upgrading sneakers. GMT is the governance and utility token used to mint or upgrade high-quality sneakers, unlock features, and participate in voting on platform changes.

Gaming and Social Features

Stepn combines gaming (GameFi) and social (SocialFi) elements to make fitness fun and engaging. Users can buy, rent, or upgrade sneakers in the marketplace, and the sneaker attributes affect earnings. The app also has a user-friendly interface and wallet to attract both crypto and non-crypto users.

Ecosystem and Governance

GMT holders can stake tokens to earn rewards and influence the platform’s future through governance voting. The app’s revenue partly comes from GST spent in-app, with incentives for GMT stakers. Stepn aims to onboard many users and promote a healthier lifestyle while integrating Web3 technology.

Pros

• Stepn encourages a healthier lifestyle by rewarding users for walking or jogging, making fitness fun and social.
• It uses a dual-token system with GMT as a governance token and GST as a utility token, adding value within its ecosystem.
• The app has introduced a new "move-to-earn" model, blending fitness with earning potential.
• Stepn has a strong community and innovative features like NFT shoes and gamified fitness challenges.
• It is built on the Solana blockchain, which supports fast and low-cost transactions.
• The project has shown significant growth and interest, with GMT having a fixed supply and governance role.

Cons

• GMT has limited use outside the Stepn ecosystem, so its value depends heavily on the app’s growth and user demand.
• The entry cost can be high, as users need to buy NFT shoes and maintain them, which may be expensive.
• The token price is highly volatile and driven by speculation and market sentiment.
• Regulatory challenges could affect the project, especially due to presales and staking features.
• Seasonal changes might affect user activity, with less motivation to exercise in colder months.
• Some users and critics compare the economic model to a pyramid scheme, relying on new users to sustain rewards.
• The project is relatively new and still evolving, so long-term stability is uncertain.

Founders

Stepn was founded by Yawn Rong and Jerry Huang.

Background

Yawn Rong is a co-founder of Stepn and has founded another company as well. Jerry Huang is also a co-founder and serves as the CEO.

Origin

The idea for Stepn came after the COVID pandemic, aiming to encourage healthier lifestyles and integrate Web 3.0 technologies.

Location

The company is based in Adelaide, Australia, and debuted at a Solana hackathon in October 2021.

Venture Capital Firms

Stepn has received funding from major crypto venture capital firms such as Sequoia Capital, Solana Capital, Alameda Research, Folius Ventures, 6th Man Ventures, DeFi Alliance, Akatsuki, Binance, Alliance DAO, and Lemniscap.

Angel Investors

Notable angel investors include Santiago R Santos and Zhen Cao, Asia Partner of Republic.

Founders and Team

The project was founded by Jerry Huang, a game developer and former founder of Falafel Games, along with his neighbor and partner. The creators and team members also hold ownership in Stepn.

Other Investors

Stepn's ownership includes a diverse group of individuals and entities, including private investors and token holders who participated in seed rounds and private sales.

Halal Status of Stepn

Stepn is generally considered halal because it is a move-to-earn app where users earn tokens by physical activity like walking or running, which aligns with real economic activity and avoids interest (riba). The earning mechanism is based on effort rather than speculation or lending, making it compliant with Islamic principles.

Reasoning

• Stepn rewards users for healthy physical activity, not for gambling or interest-based returns.
• It operates on blockchain networks (Solana and BNB Chain) with a transparent earning model.
• The token (GMT) is earned through participation, not through speculative or uncertain financial contracts.
• Some Islamic finance experts view such models as permissible since they avoid prohibited elements like riba and excessive uncertainty.

Therefore, Stepn can be considered halal according to Islamic finance principles.