Over the past few months, we have been rolling out more Web3 educational content to aid the new users in understanding common concepts in this space. We have released multiple articles covering NFTs, Crypto Jargon, and breaking down the idea of Metaverse.
In this series, we will be exploring aspects that are pertinent to our game:
- $GST and $GMT
- Energy System
By the end, we hope you will have a clearer understanding of the significance of these systems and how they function, the reasons it is structured as such, and what to expect.
Without further ado, let’s jump into our first item on the list — $GST and $GMT.
What is $GST and how does it work?
GST is essentially our utility token. What that means is that in order to participate in the STEPN ecosystem, using GST is necessary. It can be most simply compared to a country’s currency.
Almost every function in the app requires GST:
- Repairing of Sneakers
- Enhancing Sneakers
- Levelling up Sneakers
- Gems upgrade
- Unlocking Socket
- Opening Mystery Boxes
What happens when GST is used for the above functions? After — the platform fee, the remaining GST is burned. This means that it is effectively removed from circulation, thus keeping the total supply of GST under control.
Some key points about GST:
- Earned through moving (by equipping an NFT Sneaker)
- Efficiency Attribute affects the amount of GST earned
- Unlimited Supply (regulated by burning)
So as you may see, GST is the backbone of our entire ecosystem — it is what all users will be earning from moving until GMT earning is released at a future date.
What is $GMT and how does it work?
GMT is STEPN’s governance token and pseudo utility token. Unlike GST, its supply is limited and deflationary, just like Bitcoin.
GMT’s use cases include:
- Levelling to Level 5/10/20/29/30
- Upgrade Level 4 and above Gems
- Redistribute Attribute points
You can also choose to burn GMT to permanently increase your odds of:
- Increasing GST Daily Earning Cap
- Improving the success rate of ALL Gem upgrade
- Improving the chance to receive a higher quality Sneaker from opening Shoebox
- Improving the chance to receive 2 Sneaker from Shoe-Minting
GMT Token Allocation
For those new to Web3 projects, one of the fundamentals of Web3 is decentralisation, which is the concept of spreading out the decision-making process across multiple points instead of on a central authoritative body.
Many Web3 projects utilise their governance token for this exact purpose. Depending on the project, these decisions can range from major to even minor ones. In STEPN’s case, the one of the governance use cases is the distribution of the platform fee collected within the game.
GMT Voting Options
Fixed Daily Earnings: Each day, a fixed amount of GMT will be potentially earned across ALL users
Halving: The daily release of GMT follows an exponential decay pattern, on the first day of the 3rd year, the daily GMT unlocked is exactly halved compared to when GMT earning first started
(I.e. If a cap of 100,000 GMT is able to be earned daily on Day 1, on the 1st day of the 3rd year, this will drop to 50,000 GMT)
Randomisation: GMT earnings are randomised across a range to mitigate any abuse. As compared to GST, which is mined every minute, GMT earnings will be settled every few minutes.
Prorated Earnings: The more users earning GMT at a given time, the less GMT earning will be available per person. Vice Versa.
Comfort Attribute: Similar to how Efficiency is for GST, GMT earnings rely on Comfort.
More details will be released on the finalised mechanics once GMT earning nears.
Okay…but are these tokens sustainable for the long term?
Short answer — Yes.
As evident from the initiatives the team has rolled out, the community should by now be aware that we have never been stagnant, churning out constant updates and changes to adapt to the dynamic environment.
As it stands, there are still plenty of mechanic changes available at our disposal when the situation calls for it, which will be rolled out down the line.
The changes we have recently rolled out are with the intention to bring sustained demand to GST.
The team’s focus is to drive value to GST and GMT for the long term. These solutions cannot be focused on the short-term, simply because if the short-term solutions are not backed by long-term ones, the prices will inevitably crash again.
GST and GMT are an integral part of our ecosystem, and the team is constantly exploring all options to ensure that it remains sustainable to stand the test of time. We are confident that once we roll out all final use cases for the tokens, we will see a much more robust game economy.