STEPN web3 fitness game aims to spend over $6 million in Q2 profits to purchase and burn GMT tokens as the game added Ethereum support so let’s read more today in our latest cryptocurrency news.
Stepn is a popular web3 move-to-earn fitness game that expanded the program to buy back and burn the GMT tokens and the game will also expand to Ethereum blockcahin. The STEPN web3 fitness game offers a move-to-earn experience and makes major moves of its own after announcing that it will use a portion of the Q2 profits to buy back and butn the tokens with the company revealing an expansion to the ethereum blockcahin.
According to the company it earned $122 million in second quarter profits from platform fees and it plans to use 5% of that to purchase the STEPN GMT governance token from the secondary markets. At a price of $0.87 per token, it will amount to over 7 million GMT tokens that will be removed from the max supply of 6 billion. Crypto companies like Binance and PancakeSwap initiate these buybacks to reduce supply and drive the token values. The Chief Marketing Officer Shiti Manghani said:
“The buyback and burn accrue value back to GMT—our unifying thread across all the initiatives that we undertake at Stepn, be that the sustainability of our game economy, the launch of our [decentralized exchange], DOOAR, or new launches on the horizon.”
This is not the first time that Stepn used profits to buy back and burn tokens. The company announced that it will spend $26 million to do just that and the official website shows that it burned 216 million GMT tokens up to date. Stepn has more plans for other quarterly token burns and buybacks. Stepn is a mobile app that rewards users with crypto for running and walking in the real world so it is an experience that Manghani described as being like “Strava meets Pokemon Go.”
The users have to buy NFT digital sneakers by using crypto but then they can earn token rewards in return by simply walking. Manghani said that the game amassed more than 3 million active users since its launch six months ago. The app saw an increase in demand as the GMT and GST reward token prices surged but the prices dropped amid the wider market crash. Stepn is based on the Solana blockchain but the company released a digital sneaker on BNB chain as well. Last week, it announced it will expand into the Ethereum ecosystem in the near future and will allow holders of the Bored ape Yacht Club valuable collectibles that sell for $100,000 worth of crypto each to mint a free pair of NFT sneakers.
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