In This Article
Move-to-earn (M2E) is a cryptocurrency-based economic model that uses crypto tokens and non-fungible tokens (NFTs) to incentivize physical activity. The concept of M2E gained popularity with the introduction of projects such as Sweatcoin (SWEAT) and STEPN (GMT), which launched in the early 2020s.
Some of these applications are free to use, while others require an upfront investment in the form of NFT purchases or paid subscriptions. So, are you a fitness enthusiast who wants to learn what move-to-earn is and how to earn on M2E platforms? Here is an easy-to-understand review of the ‘move-to-earn’ concept to help you make the most of it.
Key Takeaways
- Move-to-earn crypto concept was inspired by devices and platforms that gamified fitness, such as Fitbit and Nintendo Wii.
- Move-to-earn crypto platforms vary in their features, reward systems, and entry requirements, each offering a unique approach to incentivizing physical activity.
- M2E taps into core psychological motivators such as instant rewards, social competition, and community.
- The value of your token rewards may be lower than the upfront investment you paid to join the M2E platform.
- M2E cryptocurrency projects need sustainable tokenomics to prevent their token value from getting diluted.
What is Move-to-Earn (M2E)? Summary
We will begin this article by discussing some technical terms that you need to know to better understand the M2E concept. Thereafter, we will discuss the origins of the M2E movement and the different types of models that exist today.
The second half of the article will cover how M2E crypto projects work and the psychology behind them. We will then proceed to discuss the pros and cons of M2E and compare it with similar crypto concepts such as play-to-earn (P2E) and learn-to-earn (L2E). Finally, we will hear what the experts think about M2E and discuss its future.
Key Terms You Should Know Before Understanding M2E
Move-to-Earn (M2E) Overview
M2E (Move-to-Earn) is a concept that uses mobile apps or platforms to reward users with cryptocurrency for physical activity, like walking or running. So while M2E itself is the idea, it’s brought to life through apps. Some M2E apps may require users to make an upfront investment in the form of an NFT purchase, while others are free to download and use.
To understand the origins of the M2E crypto concept, we have to first talk about the gamification of fitness pioneered by devices and platforms such as Fitbit and Nintendo Wii.
Wii was a gaming console released by Japanese gaming console maker Nintendo in 2006. The device incorporated innovative gameplay by featuring motion-tracking controllers and accessories capable of tracking certain body movements. The Wii would ultimately inspire the creation of a wearable device called Fitbit that counted steps. As per the Fibit founder Katie Couric,
It was late 2006, and I still had some time to play video games. And I was super excited by the Nintendo Wii. It transformed the way people thought about gaming and made gaming into something that was super active and positive for the whole family. I thought, how do we capture that magic — the magic of the Nintendo Wii and Wii Fit together — in a form factor that was with people all the time, as opposed to just in their living room?
It wouldn’t be wrong to say that the M2E concept was initially inspired by fitness trackers like Fitbit. Crypto projects later built on this trend by adding cryptocurrency rewards to motivate users even more. Today, you can earn crypto tokens by allowing applications such as STEPN and Sweatcoin to track your steps.
Types of Move-to-Earn Models
Different types of M2E models are creating the next generation of fitness tracking applications. Each model uses unique economic mechanics and entry barriers to incentivize movement and sustain user interest.
NFT-Based M2E
NFT-based move-to-earn crypto applications require users to purchase or rent NFTs to participate before allowing users to earn crypto by walking. You can think of these NFTs as a pass or a ticket that must be held by a user interested in using their app. For example, STEPN requires users to buy NFT sneakers to start earning tokens.
Free-to-Move M2E
These applications do not have any entry barriers and do not require an initial investment. User can download free-to-move M2E applications and sign up to start earning rewards for sharing data related to their activity.
Hybrid Models
Hybrid models let users start earning rewards for free, while also offering the option to boost earnings and unlock extra features by purchasing NFTs, upgrading them, or buying subscriptions.
Enterprise M2E
Insurance companies have also warmed up to M2E concepts, introducing initiatives to reward policyholders for staying active. However, due to regulatory concerns, these companies may not use cryptocurrencies as rewards. For example, AIA Vitality has introduced a wellbeing program that rewards members who complete health assessments and checks with benefits like discounts, cashbacks, and lower health and life insurance premiums.
M2E vs. Play-to-Earn vs. Learn-to-Earn
In this section, we compare M2E projects with play-to-earn and learn-to-earn platforms:
Model
Activity
User interaction
Example Platforms
Move-to-earn
Physical activity
Increase steps to earn more rewards
STEPN, Sweatcoin
Play-to-earn
Gaming
Play blockchain games, buy and sell NFTs
Axie Infinity (AXIE), Sunflower Land (SFL)
Learn-to-earn
Education
Complete learning tasks to earn token rewards
CoinGecko, 99Bitcoins
How Does Move-to-Earn Work?
Here is a step-by-step guide to understand how move-to-earn works. In this section, we will use STEPN as our example, as it is the most popular M2E crypto application in the market today. You are also welcome to read our full STEPN (GMT) review.
Download the STEPN app from the Apple App Store or Google Play.
Allow the STEPN app to track your movement.
Sign up for STEPN by using your email address.
Create a crypto wallet on the STEPN app by tapping the ‘Wallet’ icon in the top right corner of the screen.
The app will generate a 12-word secret phrase that you will need to recover your wallet in case you uninstall the app, forget your password, or buy a new phone. All your crypto rewards will be stored on this wallet.
To begin earning on STEPN, you will need GMT tokens to buy a sneaker NFT. You can buy it on a centralized crypto exchange such as Binance or Bybit and transfer it to your in-app wallet.
Head over to the STEPN marketplace and choose your Sneaker NFT.
You are all set to begin your M2E journey on STEPN. Your “Energy” which allows you to earn token rewards, restores at a rate of 25% every six hours.
Move-to-Earn Psychology: Why It Works
Move-to-earn games seem to work for a lot of reasons. For starters, M2E complements the fitness obsession of the younger generation by gamifying daily movement. The concept also taps into core psychological motivators such as instant rewards, social competition, and community that a fitness-obsessed person would intuitively react to.
M2E games not only encourage exercise and daily activity, but they also allow users to track consistency and use financial rewards as a tangible reward system that gives users proof of their healthy habits. And let’s not forget that M2E is easy to understand. The basic concept of “you walk, you earn” is easily grasped by the interested layman.
In contrast, some cryptocurrency and DeFi concepts can be unnecessarily complicated, which creates a technical entry barrier. For crypto enthusiasts and the tech-savvy, the use of NFTs and token rewards adds a layer of technological depth that makes these platforms even more appealing.
How Different Platforms Use Move-to-Earn Concept
M2E platforms leverage blockchain and cryptocurrency technology to generate and distribute reward tokens to users. A key advantage of using a global and permissionless public blockchain is that it allows M2E platforms to onboard users across geographical borders. Meanwhile, using tokens allows M2E projects to easily distribute rewards.
Crypto wallets also play a crucial role in enabling the permissionless distribution, management, and use of token rewards. Users can simply create an in-app crypto wallet to receive, store, and manage their token rewards. For certain use cases, these tokens can be transferred to a centralized exchange for trading or a DeFi platform. One can even send their M2E token rewards to non-custodial wallets like Best Wallet to store them long-term. This wallet is quite popular because of its strong security and unique features. To know more about it, consider checking out our separate Best Wallet review.
Move-to-earn crypto platforms each take a different approach, offering unique features, reward structures, and entry requirements. They also vary in the blockchains they’re built on and the types of native tokens they use to reward users. Some may choose Ethereum (ETH) to tap into its rich community, while others may prefer low-cost and fast transactions offered by performant chains such as Solana (SOL).
Pros and cons of Move-to-Earn
Pros: Cons:
Why Some M2E Projects Fail?
Many M2E projects fail due to several reasons, including poor tokenomics, lack of user engagement, regulatory hurdles, technical issues, and over-reliance on marketing.
Let’s begin with tokenomics. Any cryptocurrency project needs sustainable tokenomics to prevent its token value from getting diluted. Too many tokens in circulation will result in a supply glut, ultimately resulting in a fall in market value. Meanwhile, some M2E platforms depend excessively on marketing their token rewards instead of creating an engaging platform for fitness-focused individuals. When their token rewards decrease or when the hype shifts to newer platforms, mercenary users leave them for greener pastures.
The ban on cryptocurrencies and technical issues with smart contract codes can also harm the M2E projects.
Who Should Try Move-to-Earn?
You should give M2E platforms a try if you are a fitness enthusiast. It is highly recommended that you start playing on a free-to-use M2E platform first, so that you do not end up overspending on a product that you end up using only for a few days. So, if you are a fitness enthusiast, why not explore M2E platforms to see whether your fitness journey can yield extra rewards in addition to your well-being? Since you already have the habit of being active and tracking your physical activity, earning rewards from walking or running will add to the fun.
What Crypto Users Think About M2E Games?
Crypto users have mixed feelings towards M2E games. On one hand, they recognize M2E platforms as effective tools to onboard first-time users into crypto by tapping into the universal appeal of fitness and wellbeing. On the other hand, many are skeptical due to unsustainable token models, poor user experience, and over-dependence on rewards and hype marketing.
Most M2E platforms fail to connect with their core audience of fitness enthusiasts. Instead of building fitness communities, M2E platforms end up attracting crypto yield farmers and short-term profiteers.
Research firm Revelo Intel argued in an emailed note to 99Bitcoins that fitness apps don’t require blockchain technology or token rewards to exist or trend.
Blockchain is definitely not a prerequisite for social fitness apps. After all, these trends can easily be observed gaining adoption in real life, with no monetary incentive or crypto element to fuel growth at all. The trend of ‘run clubs’ has been gaining popularity recently. Whether these running groups are actually focused on exercise or are more interested in the social aspect is beside the point; for one reason or another, fitness can be a great funnel. This is because it provides an incentive in and of itself; health. When you put it like this, the need for external tokens or other rewards seems much less necessary.
Move-to-Earn and the Future of Fitness
M2E challenges both the Web2 and Web3 worlds to rethink how technology, finance, and health can reshape fitness. Right now, too many M2E projects lean too heavily on rewards and token incentives to drive their growth and marketing. As the broader cryptocurrency sector simplifies user experience to attract mainstream audiences, M2E projects must follow suit and focus on serving fitness enthusiasts first.
Looking ahead, M2E projects must take an innovative approach and integrate virtual and augmented reality technology to enhance the experience. As crypto regulations in the U.S. and Europe are defined more clearly, we hope to see M2E projects collaborate with leading fitness communities such as Fitbit, Nike Run Club, and Strava.
Conclusion: What is Move-to-Earn
Move-to-earn is an innovative approach to fitness tracking that needs refinement. At its core, M2E encourages a healthy lifestyle while introducing users to basic cryptocurrency concepts such as tokens, staking, crypto wallets, decentralization, and digital ownership. It has showcased real potential in bridging the Web2 and Web3 worlds, but its long-term success will ultimately depend on whether M2E developers are ready to prioritize the needs of the fitness community instead of crypto users.
See Also:
References
- “Digital Currencies.” Reserve Bank of Australia, https://www.rba.gov.au/education/resources/explainers/cryptocurrencies.html
- “Getting Started.” STEPN Whitepaper, https://whitepaper.stepn.com/getting-started.
- “Whitepaper.” Sweat Economy, https://whitepaper.swe.at/.
- “Move To Earn (M2E) Crypto Projects.” CoinMarketCap, https://coinmarketcap.com/view/move-to-earn/.
- “Move-to-Earn: A Beginner’s Guide to Earning Crypto for Fitness.” CoinGecko Learn, https://www.coingecko.com/learn/what-is-move-to-earn.
FAQs
Do I need to buy anything to start using M2E apps?
There are different types of M2E apps. Some apps require you to make an upfront investment in the form of an NFT purchase or a monthly subscription. Others are free to use.
How much can I earn using Move-to-Earn apps?
The amount of token rewards will depend on your physical activity, market value of the reward token, in-app tier models, in-game items and more.
Is Move-to-Earn safe and legit?
Most M2E platforms are safe and legit. However, it is recommended that you conduct a thorough check before using an app. It is best to start your M2E journey using popular platforms.
Can I use Move-to-Earn apps without any crypto knowledge?
Yes, most M2E apps do not require you to have any crypto knowledge to begin using them.
Are Move-to-Earn earnings taxable?
Taxation on M2E earnings will depend on the crypto taxation rules in the region of your residence. Your M2E rewards may be subject to income tax.
What devices do I need for Move-to-Earn apps?
Most M2E platforms can be downloaded on your smartphone via the App Store and Google Play.
What happens if I cheat or fake my movement?
You may face penalties and bans if you cheat or fake your movement. Different M2E platforms have different rules.
Can I use multiple Move-to-Earn apps at once?
Yes, you can use multiple M2E apps simultaneously.
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