Move-to-Earn (M2E): How to make money on the move and why has interest waned?

The “move to make money” narrative was at its peak during the 2021-2022 bull cycle. Many made good money literally out of thin air, however this celebration did not last long.

What is Move-to-Earn and how does it work?

Move-to-Earn (M2E) is a concept that allows users to earn cryptocurrency or tokens for physical activity such as walking, running or working out. Move to earn is based on mobile apps and blockchain technology that tracks users' activity and rewards them with digital assets.

The way M2E platforms work is as follows: a user installs an app, synchronizes it with a smartphone or wearable device (e.g., a fitness bracelet), exercises and receives tokens. These tokens can be used within the project's ecosystem, exchanged for other cryptocurrencies, or withdrawn into fiat. However, each platform has its own economic model that determines the rules for accruing and using rewards.

The heyday of M2E: when and why did the projects become popular?

The Move-to-Earn boom started in 2021-2022, when the cryptocurrency market was booming and the Play-to-Earn (P2E) concept had already proven its effectiveness. Many investors and users saw M2E as an opportunity to not only maintain an active lifestyle, but also make money from it.

Sweatcoin is the pioneer of the concept

One of the first popular M2E projects was Sweatcoin, a kind of fitness on the blockchain. It appeared back in 2015, but it became especially popular during the period of growing interest in Web3.

Sweatcoin's working principle:

The app tracks the number of steps a user takes using smartphone sensors and GPS, then converts them into Sweatcoins. Within the app's ecosystem, this currency can be spent on various goods, services or donations.

Converting steps to Sweatcoins:

• 1,000 steps = 0.95 SWC (including data processing fees).

• Daily limit (without Premium subscription) - up to 10 SWC.

• With Premium subscription you can get 2 times more coins.

What you could spend Sweatcoins on:

• Purchase of goods and services (electronics, subscriptions, discount coupons).

• Donations to charity.

• Exchanging for $SWEAT (a token on the blockchain).

Sweatcoins and their exchange for the cryptocurrency $SWEAT:

In 2022, Sweatcoin launched the $SWEAT cryptocurrency based on the NEAR Protocol blockchain, turning the steps into a real digital asset.

Key aspects of $SWEAT:

• Introduced in September 2022 via airdrop for Sweatcoin users.

• Can be traded on exchanges (Binance, Bybit, OKX, HTX, Gate. io, и BingX).

• Used in the Web3 space to this day (staking, DeFi, DAO).

Future of the project:

Sweatcoin is not stopping here and plans to expand the ecosystem:

• Launching new features (NFT, DeFi options, missions).

• Sweat Economy development - creation of a full-fledged Web3 fitness world.

• Global expansion - integration into sports brands and medical technology.

Genopets - M2E gaming format

Another interesting project in the M2E sphere, was Genopets - the first blockchain game of its kind, combining elements of Move-to-Earn and Play-to-Earn.

The structure of the project:

• Move-to-Earn - users earn tokens by performing physical activity (monetization of steps).

• NFT-pets - unique digital creatures that can be developed and customized.

• P2E-mechanics - the ability to earn and trade in-game assets.

• Solana blockchain - high transaction speed and low commissions.

Mechanics of Genopets operation:

1. Walking and energy harvesting

Each step of the user is converted into energy, which is used to develop NFT pet.

2. Genopet development

The energy gained can be spent on:

• Improving the pet's characteristics.

• Changing the appearance (evolution).

• Participating in PvP battles and other game events.

3. Economy and earnings

There are two main cryptocurrencies in the game:

$GENE (control token).

• Used for voting in DAO.

• Allows you to buy exclusive NFTs.

• Used for steaking and earning rewards.

$KI (game token)

• Used to craft items.

• Allows you to speed up the development of your pet.

• Can be earned for activity and PvP battles.

Future of the project:

• Development of PvP battles - battles between pets with the possibility to earn $KI.

• Introduction of new Habitat upgrades - expansion of the housing system.

• Integration of new game mechanics - quests, challenges, and other activities.

Why has interest in Move-to-Earn waned?

Despite an impressive start, the popularity of Move-to-Earn projects began to wane by the end of 2022. The main reasons were unsustainable economic models and technical difficulties.

Tokenomics problems

Most M2E projects faced an unsustainable tokenomics. Since rewards were issued in the form of tokens, their number grew rapidly, and demand did not keep up with supply. In addition, a large number of short trades on the spot had a strong impact. This led to inflation and a drop in the value of the rewards. In addition, the lack of a long-term strategy in some projects made their financial model unsustainable.

High volatility and depreciation of rewards

It is well known that the crypto market, unlike other financial markets, is most prone to high volatility and, as practice has shown, M2E projects were no exception. As the price of tokens fell, user rewards also systematically tended to decrease, so that earnings were no longer a motivating factor. As a result, users were losing interest, because these projects could not provide any other practical benefits, so the combination of all these factors led to a decrease in the value of the projects.

Does M2E still have a future?

Although Move-to-Earn has lost its former popularity, the concept remains promising, provided tokenization issues are addressed, more sustainable business models are implemented, and public roadmaps are in place. Some Web3 applications are starting to experiment with hybrid monetization models, where move to earn projects are integrated with advertising offers, subscriptions or even medical programs. 

The year 2024 and 2025 marks the time when next-level technologies such as artificial intelligence and augmented reality will evolve. Thus, M2E is unlikely to disappear completely, but is likely to evolve into more sustainable and integrated solutions thanks to technology, it just takes time.

FAQ

1. Is it possible to actually make money from M2E projects?

Yes, but the returns depend on many factors: token value, user activity and the state of the cryptocurrency market. In the long term, earnings may decrease due to token inflation.

2. What are the most popular M2E applications?

The giants of the M2E sector can be named - Sweatcoin, STEPN, Genopets, Step App and Walken.

3. Why are most M2E projects losing popularity?

The main reasons are: unstable tokenomics, high volatility of rewards and declining user interest after a drop in profitability.

4. What are the prospects for Move-to-Earn?

If projects can find a sustainable monetization model and attract new users through integration with other services (medical, gaming, advertising), M2E may have a future.

5. How to choose a reliable M2E project?

It is worth paying attention to tokenomics, development strategy, the presence of real demand for tokens and community activity. It is also important to take into account the reputation of the project's developers and partners.