Shards Protocol has raised $2 million in a funding round backed by Animoca Brands, Kyber Ventures, and Yield Guild Games. The capital will help develop Aura, Shards’ flagship product that converts user activity into visible reputation scores and unlockable rewards.
Earlier this year, the company rebranded from Shards. Tech to Shards Protocol, marking a shift from a developer tool to a broader reputation platform. The team introduced Aura to turn on-chain actions, like staking, playing, or supporting communities, into verifiable digital reputation. These achievements can then be showcased on user profiles and social platforms like X (formerly Twitter), giving visibility to contributors who often go unrecognized.
Aura’s design aims to reward genuine community involvement, with players able to earn badges, climb ranks, and unlock more rewards as their reputation grows. CEO Stefano D’Silva said the goal is to “empower the silent contributors” and introduce transparency to how participation in Web3 is acknowledged.
Backed by Major Players in Web3
Investors in the round include major Web3 organizations like Animoca Brands, Kyber Ventures, and Yield Guild Games. Yat Siu of Animoca Brands highlighted Shards’ ability to improve user acquisition through quest-based campaigns. Kyber Ventures’ Dr. Loi Luu praised Aura’s model of building trust through earned identity, calling it a step toward a more user-focused Web3 infrastructure.
Gabby Dizon from YGG added that the platform helps connect on-chain contributors with new opportunities, strengthening the fabric of decentralized communities.
Originally launched as an SDK to help game studios boost engagement and monetization, Shards.Tech reported a 200% improvement in player retention for its early partners. Over $400,000 in trading volume was generated in private alpha, and more than 1 million users interacted with the platform’s tools.