š¤ Digital Tokens for Real-World Chores
The Move-To-Earn movement takes off...
Hey there š ,
Iāve noticed an increasing trend of āMove-To-Earnā projects, where users can earn crypto tokens for doing things in the real world. This could be anything from exercising to hosting an internet router that passers-by can connect to.
Thought Iād write a quick primer on STEPN before highlighting other projects.
Due to catching the āRona this week, I had more time this weekend to catch up on some other reading (and Netflix watching), so Iāve included a couple of articles around web3ās innovations and how to farm stablecoins.
Letās get to it!
š¤ Do Things In The Real World & Get Paid
Imagine youāre working from home and decide itās time for your daily Pokeā ball (or meal of your choiceā¦but all know itās a Pokeā ball).
Instead of using Deliveroo like you usually would, you decide to take the 20 minute walk to your local Pokeā ball vendor to bask in the London sunshine (āLondon sunshineā is where this story falls apart).
Now, from having walked 20 minutes there and the same time back, youāve now clocked up 4,000 steps. BUT, imagine this time, itās not just steps youāve gained. By simply moving around, youāre also earning crypto tokens.
This is at the heart of the āMove To Earnā trend, whereby users receive monetary rewards for moving around by foot, bike or any other means.
Seems easy, right? That may be so, but how long can a project like this be sustainable? Weāll dive deeper into three interesting projects below and try to answer some of these questions.
Stepān onto Center Stage
STEPN is a āWeb3 lifestyle app with social and game elementsā. The Australian-based company started private beta testing on November 3rd and has skyrocketed in popularity and usage over the past few weeks.
STEPN NFT Sneakers
With STEPN, users basically get paid to walk and run outside. Itās a social fitness game, where you buy an NFT pair of trainers/sneakers for around 11 SOL (about $1,150) and the app (iOS, Android) tracks your steps. Everyday, you have a 100-minute window to earn points for walking/running.
How does the tokenomics work?
Users are required to mint, buy or rent NFT sneakers from the in-app marketplace. Players can also increase their earning potential by leveling up or repairing their sneakers or by upgrading their attributes with gems.
The sneakers, which are degradable, have four attributes (efficiency, luck, comfort, and resilience) and five qualities (common, uncommon, rare, epic, and legendary). The collection also has four different types of sneakers ā walker, jogger, runner, and trainers. The price of each sneaker varies depending on its type, rarity, or level.
Since its public beta launch in December 2021, STEPN has seen its daily active users jump from 1,500 to 100k at the end of March. STEPN has gained a massive 31,000% in profits since its token sale.
But is it sustainable?
What happens when new users join? From looking at projects similar to this, I can imagine rewards will decrease unless those new users buy in at higher rates for each sneaker or existing users continue to pump money into the system.
Iām sceptical - especially as the recent pump seems to be down to artwork posted by a Twitter account teasing partnerships with the likes of Nike and Adidas.
Other Projects that look interesting:
Helium is another interesting project Iāve come across - The project lets you earn money by putting an internet router in your house that others can connect to. You buy a mini-hotspot and you get paid in helium tokens when others connect to it.
Theyāve accumulated over 500k users and are aiming to cross the million mark in the next six months.
Hivemapper is building Google Maps by having users install a dashcam in their car and earning tokens for simply driving around and going about their business. They just raised $18m from Multicoin Capital to accelerate their plans.
Foursquare but youāre actually earning money while checking in. Get paid to ācheck-inā to your favourite locations. Simply take a picture with a caption and submit it on the app to earn your tokens.
Conclusion:
Move-To-Earn is the current āinā trend - this relies on a mixture of deep pockets, smart tokenomics and a sustainable path to profitability - not to mention a whole lot of luck.
While Iām sceptical about its long-term prospects, I can guarantee new economic models will flourish through projects like this.
š Things I read this week:
1. Big Blockchain Games List
Came across this list of 380+ (and counting!) games in the Blockchain space - interested to see the breakdown of genreās and funding amounts (so far).
2. How to Farm Stablecoins
Nat is a writer Iām a fan of - he breaks down his process for tracking down high yields across chains and strategies to asess the risks inherent in each strategy.
3. Four Fundamental Innovations of Web3 that Will upend Web2 Incumbents
Four key areas of the innovations of Web3:
An interoperable permanent ownership record
Paying customers in āequityā
Regulatory arbitrage
DAO/Foundations
Until next time
I hope you enjoyed this weekās edition - I'd love it if you shared it with a friend or two. Got feedback? Reply to this email orĀ tweet at meĀ and letās chat.
Fahim