StepN NFT with Each Step

STEPN’s plan to beat the recession and build a successful product despite the bear market hinges on its business model, the Web3 app has revealed.

Like many other Web3 projects, STEPN has suffered losses under the current bear market. Its in-game currency, GMT, saw an impressive all-time high of $4.11 in May this year.

The token has suffered catastrophic losses since, losing the majority of its value. It is currently worth only $0.63.

STEPN has published a series of articles outlining how it plans to get through the recession. The newest instalment outlines why its business model is key to making the project a success in the long term. Here are the key takeaways from the piece.

Woman running on her own.
STEPN is the game that made M2E mainstream in the Web3 world. Image source: STEPN

STEPN: The key elements that make a project strong

STEPN’s leadership team has a lot of experience and expertise in the business world and has weathered similar storms before. They understand what makes a project strong and know that they must ensure STEPN’s fundamentals are in place if they wish to emerge through the bare market unscathed.

In a previous article, STEPN’s team outlined the three elements that all successful projects have in place. They can be boiled down to the following principles:

  •  A strong team is key
  •  Your business model has to be sound
  •  The product must be good
StepN NFT App
STEPN is the Web3 app that has taken the world of blockchain gaming by storm and redefined the idea of M2E. Image source: STEPN

This sounds simple enough but it is absolutely essential is a project is to be successful. Elite teams set themselves apart from good teams with qualities that come from the team’s culture. These include integrity, passion, and resilience.

But a good business model is key too. A good business model is one that is profitable, but also has a long-term goal of being transformative.

And this is where STEPN’s stormproof business model comes in.

STEPN’s business model: The core concepts of a winning project

STEPN’s unique business model comes from its niche. It is not simply a P2E game. The idea isn’t to earn by pressing buttons. But it isn’t merely a fit-tech app designed to get people moving with no incentives.

Instead, the model has fused the two concepts together. P2E and fit tech have come together to create something truly novel, and that is the move to earn movement (M2E).

Or, as is popular now, the move and earn movement, where people move and earn. And yet, the emphasis isn’t on moving or earning alone.

M2E allows people to earn and stay fit. The team has gamified exercise and made it ‘fun’.

Illustration of a woman running wearing NFT shoes running on top of a phone
STEPN’s business model is a huge part of its plan to weather the bear market and come out on the other side unscathed. Image source: STEPN

Further, the Web3 lifestyle app solves a key problem that doesn’t go away during a recession: taking care of people’s health and well-being.

But it is innovation that is likely to keep the company going. As a spokesperson for STEPN said before:

“Even though we’ve successfully created a new market, we’re continuing to innovate while…  monitoring market trends, doubling down on our team, and gathering feedback from our users.”

STEPN’s prudent move towards external revenue sources

But STEPN’s founders are under no illusion that a decent business model is all it will take to create a successful Web3 app in a bear market.

And this is reflected in their planning for the future.

A spokesman for the company said: “Fundamentally strong projects aren’t the ones that are performing fantastically during hard times.

“They’re the ones that have thought ahead and are able to withstand negative moves in the market.

“They’ve planned ahead and set money aside for hard times, because they know that hard times do inevitably come, just as good times inevitably come.”

Another aspect of their winning business plan is therefore the contingencies they’ve put in place in case the economics cannot be sustained.

This includes external revenue sources like its own multi-chain Decentralized Exchange (DEX) DOOAR

STEPN’s business model and the success of DOOAR

DOOAR was built with the intention to provide a separate, sustainable revenue stream for the project. The DEX charges a 1% trading fee. a large proportion of which goes straight back into the STEPN economy.

Shortly after launching its DEX, STEPN reported that over 300,000 unique wallets had interacted with DOOAR. This accounts for 30% of the total daily users who interact with Solana.

STEPN embraces agility

Given STEPN’s outlook on its business model and previous track record with innovative projects, it should come as no surprise that agility is a core component of its operations.

In the founders’ view, what’s more important than the project’s ability to make money is its agility. In fact, while innovation is important, what’s more important is a project’s ability to react to changes in the market quickly.

And that’s where STEPN sets itself apart; it is ready to create and launch external revenue streams to secure its future in a bear market. It hires rather than fires people during a recession. It continues to build and reinvest itself.

Agility and innovation underpin this project’s business model, which is why they are feeling bullish about this bearish time.


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