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Move-to-Earn Meaning

Move-to-Earn (M2E) is a sub-sector of the GameFi economy that rewards users with cryptocurrency for physical activity. Users typically download an app and purchase a "NFT Sneaker" or similar digital asset to get started.

The app then uses the smartphone's GPS and accelerometer to track activities like walking, jogging, or running. The most famous example, STEPN, created a dual-token economy where users earned a "Utility Token" for every minute they moved.

These tokens could be used to repair or upgrade their NFT sneakers (burning the tokens) or sold on the open market for profit. This model gamifies fitness, providing a financial incentive to lead a healthier lifestyle.

The sustainability of Move-to-Earn models is a subject of intense debate. Critics argue they often function like Ponzi schemes, as the rewards paid to existing walkers are funded by the money new users pay to buy NFT sneakers.

Once the influx of new users slows down, the token price often collapses, leaving late entrants with expensive digital shoes and no way to recoup their investment.

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