STEPN to Launch Quarterly GMT Buyback and Burn Amid Stellar Profits in Q2 2022
With a whopping 356.75% increase in profits, STEPN plans to kick off the Q2 GMT buyback and burn program soon.
STEPN to initiate Q2 GMT buyback and burn program
On Tuesday, move-to-earn app STEPN announced that it made $122.5 million in profits through its platform fees in Q2 2022. That's a whopping 356.75% increase in profits compared to the net gain of $26.82 million in Q1 2022. Given that, STEPN will use 5% of the profits to launch a GMT buyback and burn program.
With no signs of slowing down, the announcement came after STEPN announced its 3rd realm called APE realm last week. Apart from GMT tokens, other assets that are part of the buyback program will include NFT sneakers as well. But to avoid causing sudden price volatility, it will take a few weeks for the process to complete.
Amid stellar profits, STEPN is also looking to deploy more capital to improve the app's existing features. One of them is to enhance the platform's security and server capacity to counter a growing number of DDoS attacks on the app. What's more, its AI-powered SMAC anti-cheat system will be upgraded to weed out bad actors within the game's ecosystem.
What does the community say?
Well, it's safe to say that many users are pretty outraged by the news. Why? To begin with, 5% of Q2 profits is only 6.125 million in total, which is not much at all. As Veer Singh said in a tweet: “Probably a greedy move from the team! If the team made $26M in the first quarter and used it to buy back and burn. They should have done the same with this quarter's earnings, 5% does nothing much tbh.”
Plus, many users are earning GST, not GMT from the app. So, the decision to buy back GMT instead of GST was no doubt met with tons of criticisms. “Please burn GST too! Don’t you think that GST is as important as GMT?" said Yudai zozo. Needless to say, there is a long list of resentments in response to STEPN's buyback announcement on Twitter.