Animoca Brands Backs Shards Protocol in $2 Million Raise

Shards Protocol has secured $2 million in fresh capital to advance its mission of building reputation-based systems for the Web3 ecosystem. The funding round attracted major players, including Animoca Brands, Kyber Ventures, and Yield Guild Games.

Good to know

• Animoca Brands continues backing projects that expand Web3 identity and user ownership.
• Shards Protocol now focuses on on-chain reputation and reward systems.
• Aura, the platform’s flagship product, turns crypto activity into visible achievements.

Originally launched as Shards.Tech, the company rebranded to Shards Protocol earlier this year, shifting away from a pure developer tool to a broader platform that serves the Web3 community. The team introduced Aura, a system that transforms blockchain activity—such as staking, gaming, and community support—into digital badges, ranks, and unlockable rewards.

Aura helps make invisible contributions visible. Users who often play key roles in Web3 projects without public recognition can now build and showcase verifiable profiles. These achievements are sharable on social platforms like X, making it easier for individuals to gain trust, status, or even new opportunities.

Yat Siu, co-founder of Animoca Brands, underscored why his firm is supporting Shards Protocol. He pointed to the platform’s potential to improve user acquisition by linking quest-based campaigns with on-chain activity. Animoca’s backing signals strong interest in tools that measure and reward community engagement across decentralized ecosystems.

Stefano D’Silva, CEO of Shards Protocol, said the aim is to “empower the silent contributors” by giving them a measurable identity in Web3. That focus on earned trust is what drew attention from other investors as well.

Kyber Ventures’ Dr. Loi Luu described Aura as a move toward building trust through digital actions instead of static identity. Meanwhile, Gabby Dizon of Yield Guild Games said the platform is helping on-chain contributors get discovered and rewarded in new ways.

Before this transition, Shards.Tech worked closely with game studios to help boost engagement. Early partners saw a 200% increase in player retention and over $400,000 in trading volume during private testing. Over 1 million users interacted with the platform’s tools during the alpha phase.

With new funding and major backers in place, Shards Protocol now moves forward with scaling Aura as a core part of the evolving Web3 reputation infrastructure.