STEPN also said that it is actively considering new prospects for partnership and sponsorship within the framework of sports and entertainment events dedicated to the brand.
The Solana-based earnings app earned $122.5 million in revenue from platform fees in the second quarter of 2022.
According to the official announcement, STEPN plans to use 5% of the profit received to launch an asset buyback and burn program in the second quarter GMT. It said GMT and sneakers would be part of the program. STEPN also reported that the entire process of the buyback and burning program may take several weeks to avoid sharp price volatility.
Along with this, the platform will also allocate capital reserves to expand existing functions and create a team. Branding also remains one of its top priorities, as the company hopes to direct part of the profits to the development of a line of physical goods for marketing purposes. The goal is to increase overall brand awareness and acceptance.
STEPN has previously been subjected to a variety of distributed denial of service (DDOS) attacks. The platform said that to prevent such incidents, it will redouble its efforts to improve security and servers with the profits generated in the second quarter.
Improving SMAC (STEPN Model for Fraud Protection), a system that aims to eliminate fake users and prevent fraudulent traffic data in the application, is also one of the key areas of deployment of funds.
The "move to earn" model is quickly becoming the main advertisement that has contributed to the growth of platforms such as STEPN. In April its native Green Metaverse Token (GMT) coin gained more than 30,000% since the sale of its tokens on Binance Launchpad.
The self-proclaimed "lifestyle app" web3 has grown significantly in terms of the number of daily active users since the launch of its public beta in December 2021.
Despite the success, it declined to participate in mainland China due to increasing regulatory pressure. The platform announced the termination of IP and GPS-related services for users from the region. The deadline is set for July 15.
The STEPN team published an explanation stating that it excludes any business or offers people any ways to download the application within the jurisdiction. Its founder Jerry H. said that Chinese customers make up only 5% of the total user base of the game; therefore, a ban is not expected to have a significant impact on business.