CoinClear

STEPN (GMT)

4.8/10

STEPN pioneered move-to-earn and reached millions of users before its Ponzi-like economy collapsed. The team has pivoted to a broader lifestyle platform, but GMT is down 95%+ from ATH and the move-to-earn model remains fundamentally unsustainable.

Updated: February 16, 2026AI Model: claude-4-opusVersion 1

Overview

STEPN is a Solana-based (now multi-chain) move-to-earn application where users purchase NFT sneakers and earn cryptocurrency by walking, jogging, or running. Launched in late 2021, STEPN became the breakout Web3 lifestyle app of early 2022, reaching millions of monthly active users and generating tens of millions in daily revenue at its peak. The app operates with a dual-token system: GST (in-game utility token) and GMT (governance token).

STEPN's rise was meteoric and its fall equally dramatic. The unsustainable token economics led to a death spiral in mid-2022 when new user growth couldn't sustain the rewards for existing users. Since then, the team has attempted multiple pivots including STEPN GO, a social fitness evolution, and FSL (Find Satoshi Lab) as the parent brand for a broader lifestyle ecosystem.

Gameplay

Score: 6/10

STEPN's core gameplay loop — buy sneaker NFT, walk/run, earn tokens — is elegantly simple and connects to real-world activity, which is a genuine innovation. The sneaker leveling, gem system, and shoe attributes add strategic depth. STEPN GO introduced a social element with "houseslots" allowing sneaker lending. The fitness tracking is reasonably accurate using phone GPS. However, the gameplay is fundamentally repetitive, and the "fun" is primarily financial (earning tokens) rather than intrinsically enjoyable. Without token rewards, few users would choose STEPN over free fitness apps.

Technology

Score: 5/10

STEPN launched on Solana and expanded to BNB Chain and Ethereum, demonstrating multi-chain capability. The GPS-based activity tracking works adequately but faces the perennial challenges of GPS spoofing and accuracy. The NFT sneaker system is well-implemented with meaningful on-chain attributes. The FSL ecosystem has expanded to include DOOAR (DEX) and other components. However, the technology is not particularly innovative — GPS fitness tracking existed long before crypto, and the smart contracts are standard NFT mechanics. Anti-cheating systems have improved but remain imperfect.

Economy

Score: 4/10

STEPN's economy is its greatest weakness. The move-to-earn model is structurally similar to a Ponzi scheme — early participants are paid by new entrants purchasing sneakers. When user growth slowed in mid-2022, GST hyperinflated, sneaker values crashed, and most users were left with losses. The team has attempted to address this with GST burning mechanisms, energy systems, and reduced emission rates, but the fundamental challenge remains: where does sustainable value come from? Without external revenue exceeding token emissions, the economy will always tend toward collapse.

Adoption

Score: 5/10

At its peak, STEPN had millions of monthly active users and became a genuine cultural phenomenon, particularly in Asia. The app was featured in mainstream media and attracted non-crypto fitness enthusiasts. Current adoption is significantly lower but stabilized — the app maintains a dedicated user base of fitness enthusiasts who continue using it despite reduced earnings. STEPN GO has attracted some new users. The brand recognition in the Web3 fitness space remains strong, but the user base is a fraction of its peak.

Tokenomics

Score: 4/10

GMT has a total supply of 6 billion tokens with a 4-year vesting schedule. Major allocations went to the team (30%), private sale investors (16.3%), and ecosystem fund (30%). The dual-token model (GST for utility, GMT for governance) was innovative but created complexity. GMT's governance utility is limited in practice. Recent GMT burning events have been introduced to reduce supply, but the burns are funded by the team rather than organic protocol revenue. The tokenomics reflect a project trying to retrofit sustainability onto an originally unsustainable model.

Risk Factors

  • Structural Ponzi dynamics: Move-to-earn requires perpetual user growth to sustain rewards
  • Massive price decline: GMT down 95%+ from ATH
  • User retention challenge: Most peak-era users have left and won't return
  • GPS spoofing: Ongoing challenge that undermines the integrity of the earning system
  • Competition: Dozens of move-to-earn imitators dilute the market
  • Regulatory risk: Exercise-linked token earnings may face regulatory scrutiny
  • Team allocation: Large team and investor allocations create ongoing sell pressure
  • Macro dependency: Fitness app usage is seasonal and lifestyle-dependent

Conclusion

STEPN deserves credit for pioneering the move-to-earn concept and proving that crypto can incentivize real-world physical activity. The app reached mainstream adoption levels rarely seen in Web3. However, the economic model was always unsustainable, and the 2022 collapse was inevitable rather than unlucky. The team's pivot to a broader lifestyle ecosystem shows adaptability, but GMT holders have suffered enormous losses and the fundamental question remains unanswered: can move-to-earn work without Ponzi dynamics? Until STEPN demonstrates a sustainable economic model, the token remains high-risk.

Sources

  • STEPN app analytics and documentation
  • CoinGecko market data
  • FSL ecosystem reports
  • Dune Analytics STEPN dashboards
  • STEPN community forums and social channels