Stepn (GMT)

Move-to-Earn Fitness App

Stepn is a Web3 lifestyle app on the Solana blockchain that rewards users with crypto tokens for physical activities like walking, jogging, or running. Users buy NFT sneakers in the app, and the app tracks their movement to earn rewards.

Game-Fi and Social-Fi Features

Stepn combines gaming (Game-Fi) and social (Social-Fi) elements to encourage healthier lifestyles and combat climate change. It also helps introduce users to the Web3 ecosystem by making crypto accessible through fitness.

Dual-Token Economy

Stepn uses two tokens:

• GST (Green Satoshi Token): Earned by moving and used for in-app activities like buying or upgrading sneakers.
• GMT (Green Metaverse Token): A governance token used to unlock features, mint or upgrade sneakers, and participate in voting within the app.

Marketplace and Wallet

The app includes a built-in marketplace to buy, sell, or rent NFT sneakers and a decentralized wallet to manage crypto funds, making it easy for both crypto and non-crypto users to participate.

Community and Governance

GMT holders can stake tokens to earn rewards and take part in governance decisions, helping shape the future of the Stepn ecosystem.

Pros

• Stepn rewards users with crypto tokens for physical activities like walking, jogging, or running, encouraging a healthier lifestyle.
• It uses the Solana blockchain, benefiting from fast processing times and low transaction costs.
• The app combines gaming, social, and fitness elements, making exercise more engaging and fun.
• Stepn has a dual-token system: GST (utility token earned by moving) and GMT (governance token with limited supply).
• It is accessible via major crypto exchanges, including some in the U.S., making it easier to buy and sell tokens.
• The project has undergone security audits to help protect users.
• Stepn aims to connect users to Web3 and promote crypto adoption in a simple way.
• Users can upgrade or buy NFT sneakers in the app, adding a game-like experience.
• The app removes the need for a crypto wallet for new users by using activation codes, simplifying onboarding.

Cons

• Stepn’s tokens, especially GMT, have limited use outside the Stepn ecosystem, so their value depends heavily on the app’s growth and user demand.
• The crypto market is volatile, and token prices can change quickly based on market sentiment.
• The app requires an initial investment to buy NFT sneakers, which can be costly.
• Earnings depend on continued user interest and new users joining, which may affect the economy of the app.
• Regulatory challenges could impact Stepn and its tokens in some countries.
• The project is relatively new and still proving itself among many other crypto and blockchain projects.
• Some users worry about the long-term sustainability of the token economy.
• The app’s success may vary with seasons, as people might exercise less in colder months.
• Users unfamiliar with crypto wallets and self-custody might face difficulties or risks managing their tokens.

Founders

Stepn was founded by Jerry Huang and Yawn Rong. They started the project in 2021 through their fintech studio, Find Satoshi Lab, based in Australia.

Background of Founders

Jerry Huang is an experienced founder with a background in information technology and gaming. Yawn Rong is a serial entrepreneur and crypto investor who has built successful brands before co-founding Stepn.

Company Origin

Stepn was created as a move-to-earn fitness app on the Solana blockchain, aiming to encourage healthier lifestyles by rewarding users with tokens and NFTs for physical activity.

Major Venture Capital Investors

Stepn has raised significant funding from well-known venture capital firms including Sequoia Capital, Folius Ventures, Solana Capital, Alameda Research, 6th Man Ventures, DeFi Alliance, M13, Corner Ventures, Sfermion, Zee Prime Capital, Lemniscap, Spark Digital Capital, MorningStar Ventures, Openspace Ventures, Solar Eco Fund, and WelinderShi Capital.

Strategic and Accelerator Investors

Other investors include Binance Labs (the venture capital arm of Binance), Alliance (Accelerator), Bell Partnership, Emoote, Graviton Fund, Peak XV Partners, Imprint Capital Partners, and FindSatoshi Lab.

Angel Investors

Notable angel investors involved are Santiago R Santos, a former ParaFi Capital partner, and Zhen Cao, Asia Partner of Republic.

Investment Rounds and Scale

Stepn has raised around $5 million in seed funding and a total of approximately $5.96 million across multiple rounds from over 20 institutional investors.

Halal Status of Stepn

Stepn is generally considered not halal because its gameplay has similarities to gambling, which is forbidden in Islam. The earning mechanism through NFTs and token rewards resembles gambling elements, making it problematic under Islamic finance principles.

Reasoning

• The use of NFTs in Stepn can be interpreted in different ways, but the gameplay's resemblance to gambling is a key concern.
• Gambling is strictly prohibited in Islam, and Stepn’s model involves earning tokens based on physical activity but with game-like financial incentives that resemble gambling.
• Some Islamic scholars and experts have expressed doubts about Stepn’s structure, with concerns about it potentially being similar to a Ponzi scheme.

Thus, Stepn does not align well with Islamic finance rules and is considered haram by many in the Muslim community.