Shards Protocol Secures $2M to Boost Web3 Reputation & Rewards
▼ Summary
– Shards Protocol raised $2 million in funding with participation from Animoca Brands, Kyber Ventures, and Yield Guild Games.
– The protocol evolved from Shards.Tech to Shards Protocol, enhancing user acquisition and rewards, and initially boosted game retention and spending by over 100%.
– Its flagship product, Aura, transforms on-chain activity into reputation and rewards, aiming to improve credibility and transparency in Web3.
– Shards Protocol’s ecosystem, led by Aura, allows users to display reputation scores and badges on platforms like X (formerly Twitter) to unlock rewards.
– Investors and partners, including Yat Siu and Loi Luu, praised Shards Protocol for revolutionizing Web3 user acquisition and on-chain identity through merit-based recognition.
Shards Protocol, a cutting-edge platform designed to recognize and reward Web3 user engagement, has successfully secured $2 million in funding from prominent investors including Animoca Brands and Kyber Ventures. This financial boost will accelerate the development of its flagship reputation system, Aura, which transforms on-chain activity into measurable credibility and incentives.
Originally launched as Shards.Tech, the protocol began as an SDK layer for game studios, helping them increase player retention and in-game spending by over 100%. By allowing users to purchase fractional ownership of teams or assets, it created a dynamic marketplace where participation translated into tangible value. Early adopters reported retention spikes exceeding 200%, with trading volumes surpassing $400,000 during its private alpha phase.
The shift to Shards Protocol marks a strategic expansion beyond gaming, targeting broader Web3 adoption. Stefano D’Silva, CEO of Shards, emphasized the need for deeper recognition in decentralized ecosystems: “Aura addresses a critical gap by rewarding contributors who stake, build, and support projects—often without acknowledgment.” The protocol’s reputation layer assigns scores and badges based on on-chain milestones, which users can showcase on platforms like X (formerly Twitter) to unlock exclusive rewards.
Investors see Aura as a game-changer for Web3 identity and engagement. Yat Siu of Animoca Brands highlighted its potential to “revolutionize user acquisition through quest-based campaigns,” while Loi Luu from Kyber Ventures praised its “user-centric approach to verifiable trust.”
With fresh capital, Shards plans to refine Aura’s integrations and prepare for an upcoming token launch. Gabby Dizon of Yield Guild Games (YGG) noted the protocol’s role in “connecting on-chain activity with real-world opportunities,” underscoring its value for growing Web3 communities.
By bridging participation and recognition, Shards Protocol is redefining how credibility is earned in decentralized networks—one milestone at a time.
(Source: VentureBeat)
