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June 4, 2025 – Shards Protocol, a pioneering platform dedicated to building verifiable on-chain reputation and dynamic reward systems, today announced it has successfully raised $2 million across multiple strategic funding rounds. The investment saw participation from leading Web3 entities including Animoca Brands, Kyber Ventures, Yield Guild Games (YGG), Arc Community, Based VC Fund, Zaiken Ventures, Eden Holdings, and FireX Capital. This capital infusion will accelerate the development and integration of Aura, Shards Protocol's flagship reputation layer designed to bring transparency, trust, and meritocracy to the Web3 ecosystem.
Shards Protocol initially gained traction as Shards.Tech, an SDK layer that significantly boosted retention rates and in-game spending for game studios. Through its private alpha, Shards.Tech integrated with multiple games, onboarding over 1 million users and generating over $1 million in trading volume, with a notable increase in retention rates by over 200% in 2024 and over $400,000 in trading volume.
However, the team quickly recognized a broader need within the Web3 space. "The company onboarded over 1 million users across all products and generated $1M + trading volume, but we quickly realized that Web3 needed more," said Stefano D’Silva, CEO of Shards Protocol. "That is why we introduced flagship product Aura, a recognition layer that transforms your on-chain contributions into reputation and rewards."
Aura by Shards Protocol is a decentralized reputation layer that transforms users’ on-chain activities—such as staking, trading, and participating in communities—into verifiable reputation scores and rewards. By converting transaction history into visible credibility, Aura aims to recognize and incentivize meaningful contributions within the Web3 ecosystem. Users can display their reputation scores, collect unique badges, and integrate these achievements directly onto their X (formerly Twitter) profiles, creating a new standard for on-chain identity that is earned, not given. The more badges users mint, the more they build their reputation, enabling them to access more rewards.
The strategic importance of Aura has resonated deeply with investors:
Yat Siu, Executive Chairman of Animoca Brands, commented, "We are glad to support Shards Protocol; it is revolutionizing Web3 user acquisition by seamlessly integrating quest-based engagement and campaigns."
Loi Luu, Founder of Kyber Ventures and Caliber, stated, "Shards Protocol’s Aura represents a powerful step toward on-chain identity that is earned, not given. Aura’s approach to reputation aligns with our vision of user-centric Web3 infrastructure, one that rewards meaningful participation and promotes verifiable trust."
Gabby Dizon, Cofounder of Yield Guild Games (YGG), added, "Aura by Shards is exploring ways to recognize what people are doing on-chain and connect them with opportunities. It’s always good to see more projects building toward better ways for web3 communities to grow and organize."
The newly secured capital will primarily be used to enhance Aura and its deeper integration within the broader Web3 ecosystem as the project gears up for a token launch and further product expansion throughout the year. "With Aura, we are setting a new standard for credibility in the space by empowering the silent contributors who have been staking, building, and supporting projects without recognition," D’Silva emphasized. "By transforming on-chain activity into reputation and rewards, Aura brings a layer of transparency and meritocracy that Web3 has been missing until now."
Shards Protocol is poised to empower a new era of Web3 participation, where every on-chain action contributes to a verifiable and rewarding digital identity.
About Shards Protocol:
Shards Protocol is a decentralized reputation layer that transforms users’ on-chain activities—such as staking, trading, and participating in communities—into verifiable reputation scores and rewards. Its flagship product, Aura, aims to recognize and incentivize meaningful contributions within the Web3 ecosystem, building a new standard for on-chain identity and meritocracy.
About Animoca Brands:
Animoca Brands, a Deloitte Tech Fast winner and ranked in the Financial Times list of High Growth Companies Asia-Pacific 2023, is a leader in digital entertainment, blockchain, and gamification that is working to advance digital property rights and contribute to the establishment of the open metaverse.
About Kyber Ventures:
Kyber Ventures is the venture arm of Kyber Network, focused on investing in and supporting innovative Web3 projects that align with their vision of a decentralized future.
About Yield Guild Games (YGG):
Yield Guild Games (YGG) is a decentralized autonomous organization (DAO) that invests in play-to-earn games, aiming to create the largest virtual world economy, optimize its assets for maximum utility, and share its revenues with its token holders.
Compiled by CMO Intern team
