The team will use 5% of the profits to initiate a buyback and burn program of its native GMT tokens.
Solana-based game platform STEPN reported $122.5 million in Q2 profits even as crypto market conditions have declined in the past few months, the team said in a post Tuesday.
The “move-to-earn” project earned $26 million in Q1, as previously reported. Move-to-earn, similar to play-to-earn, is a model where users are rewarded in cryptocurrency for their step count on the STEPN application.
STEPN said it would leverage 5% of the profits to initiate a buyback and burn program for its native GMT tokens. It added that the buyback and burn process “may take a few weeks to complete” in order to avoid causing sudden price volatility.
“In addition to the buyback and burn program, STEPN will allocate capital reserves to improve upon existing features and build out the team,” developers said.
STEPN said the team had identified several areas where the company will deploy its earned capital in order to improve gameplay. These include security enhancements, anti-cheating mechanisms to prevent bots from earning GMT, growing the developer and core team, and seeking out partnerships and/or sponsorship opportunities.
GMT prices rose nominally following the earnings release. The tokens traded at 85 cents as of the time of writing, and are down 71% from April’s all-time high of $4.11.