For some time, critics have been falling on the Move-to-Earn blockchain games regarding their winning system. Indeed, many users claim that they use the Ponzi scheme to reward players. The most sceptical wonder about the origin of the funds and also about the means used to acquire them. Is the StepN game a Ponzi?
The Ponzi scheme, how does it work?
The Ponzi scheme consists of paying people on the network with the funds brought by newcomers, and so on. Thus, users already present on the system must recruit new users, in order to earn more money. This is done through a sponsorship system where the sponsor receives part of the money from his godson who will then have to pay his own sponsor. Therefore, the people at the top earn much more than those at the bottom of the pyramid.
It is a fraudulent, and unauthorized, concept in all its forms. But many critics claim that the Move-to-Earn game system is closely related to the Ponzi scheme, in one way or another.
StepN relies on tokens to ensure its stability
However, taking this process into account, the first StepN player should be the richest of all. There are, in fact, currently thousands of players on the application. However, this is not the case.
The Move-to-Earn StepN game is based on two tokens to ensure its stability. First of all, there is the GSTtoken utility, which is generated infinitely on the network, with each action of the players (improvement of sneakers, purchase of new pairs, etc.). The more GST there is, the more its value decreases. Then there is the GMT governance token, which is limited in number and allows players to participate in certain decisions of the application.
Players' remuneration on StepN
The remuneration system on StepN depends on the investments of the players. There is a basic reward for classic sneakers. In addition, there is a limit of earnings each day, to avoid abuse on the application. Players have the option to increase their daily payout and rewards by upgrading their basketball or buying new pairs on the app.
Don Crypto, a seasoned player on StepN, has invested more than $15,000 to maximize his winnings. He believes that at some point he will be able to take advantage of his returns on investment, and will start making a lot of money on this app.
Conclusion
Are Move-to-Earn games Ponzi schemes? At first glance this is not the case, even if some applications look like it. When it comes to StepN, players are paid based on their investment, not new players who arrive on the network. But are there any blockchain applications that actually use this system?
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Sources: https://www.cointribune.com/tribunes/tribune-crypto-et-gaming/stepn-ponzi/