Adelaide-based STEPN announces $122 million in Q2 profits, plan buybacks and burns
Categories: Crypto News US
Adelaide-basedSTEPN announces $122 million in Q2 profits, plan buybacks and burns
On 12 July, Adelaide-based move-to-earn platform STEPNannounced Q2 profit of US$122.5 million, which it says was generated throughits platform fees. In keeping with the economic plan outlined in the project'swhitepaper, STEPN plans to allocate 5 percent of this profit to its Q2buyback-and-burn program.
The Solana-based move-to-earn leader also revealedthat a portion of the profits will be spent on addressing security and fraudissues that have plagued the platform recently. According to STEPN, itsbuyback-and-burn program is designed to ensure that its users are "bestsupported."
Generally, token burning is seen as a way to increase thescarcity of the token and therefore increase its price – STEPN uses this mechanism toincrease the value of its tokens over time and to make its platform moreattractive to users. uses it. Based on the 5 percent figure cited in theannouncement, the Q2 buyback-and-burn program should see only US$6 millionworth of tokens burn.
STEPN explained that the program "may take a few weeksto complete to avoid sudden price fluctuations". Following a series of DDoSattacks targeting the platform in the first half of 2022, the STEPN team saysit has decided to spend more resources on increasing server capacity andenhancing the platform's security.
Steppen is one ofthe leaders in the emerging field of move-to-earn platforms: crypto-based appsthat allow users to earn rewards by exercising. The platform has seensignificant growth since its launch in December 2021. By April of 2022, theSTEPN value had increased by 217x.
Like most crypto projects, however, it has seen adramatic decline in its value recently, partly due to factors affecting themarket as a whole and partly due to DDoS attacks and fraud scams that have putconfidence in the project is shaken. Currently, STEPN's governance token istrading at US$0.85 GMT, down about 78 percent from its all-time high of US$3.83in April.