Until now, the recording of sports performance and effort rewards were mainly confined to two things. On the one hand, mobile applications which made it possible to keep all the data of his efforts and share them on social networks. On the other side, the devices allowing the recording of physical exercise data via an Apple Watch for example.
But the arrival in recent years of blockchain, NFTs and Play-To-Earn games has completely changed the situation to see the emergence of a new way of consuming sport.
What is it concretely?
Like Play-To-Earn (P2E), blockchain applications based on the concept of Move-to-Earn (M2E) combine both the world of video games and sports applications to earn cryptocurrencies for users who are physically active. It is therefore a perfect combination between Play-to-Earn and applications encouraging people to move and take care of their health.
In reality, Move-to-Earn is just a “gamification” of what decentralized finance (DeFi) offers. Namely, to invest a certain sum, to obtain a return in return.
How does Move-To-Earn work?
Move-to-Earn, will take over the economic model of today’s video games. Namely the possibility of paying to improve your gaming experience, evolve faster, optimize your performance… Thus, in return for the physical effort provided, the player is rewarded in cryptocurrencies for having taken part in the adventure. In a Move-to-Earn, it will therefore be necessary to move daily to hope to obtain gains on a regular basis.
With the gain at the end of the effort, the athlete is then free to reinvest his tokens in the game or in other cryptocurrencies. It is also quite possible to withdraw your winnings against euros or dollars for example.
The return on investment comes above all from the valuation of the distributed token. In other words, it is not the game that rewards participation, but the existence of a community of “player-investors”.
What are the main applications of Move-To-Earn?
- StepN : the undisputed leader of M2E. Players earn cryptocurrency (the GMT) by walking or running outside. Victim of its success, it becomes particularly difficult for a small wallet to take advantage of the advantages offered by the application.
- dotmoovs : allows you to challenge other people around the world, in all kinds of sports. An algorithm recognizes movements and makes it possible to compare its performance to others, and earn tokens in parallel.
- Genopets : the application proposes to transform physical movements and cognitive efforts into progress in the game in order to improve and evolve an NFT (a creature called Genopet).
Read also Understand altcoins in just 3 minutes
The strengths and weaknesses of the concept
The benefit argument for health is obviously the major asset of these M2E. Nevertheless, Move-To-Earn suffers from some major flaws:
- The cost of entry is generally significant. You must first invest (in NFT sneakers in the case of Step’n) before you can hope to have a correct return on investment. It takes several hundred or even several thousand dollars to start playing some applications.
- These games remain primarily finance applications. There is therefore a real risk of losing the capital invested.
- M2Es often have an image of simple “Ponzi schemes” or the first players are remunerated by the arrival of the new ones. It is therefore necessary to remain vigilant and to find out about the seriousness of the team in charge of the development of the project before launching.
Conclusion: what future for Move-To-Earn?
The arrival of the blockchain finally allowed the emergence of real innovation with real financial rewards for the physical effort provided. This new concept of M2E also encourages users to adopt positive behaviors for their health.
However, Move-to-Earn are only in their infancy. They will have to be able to retain a real community over the long term, renew themselves with new challenges and attract new users so that demand remains greater than supply.