Crypto Games Continue to Close. This $500K Fund Seeks to Assist Players in Recovering

Simply put

• The Crypto Gaming Recovery Fund is designed to aid players impacted by the closure of Crypto Games in Splinterlands.
• A total of $500,000 in tokens and in-game assets will be distributed over a seven-year period.
• The team behind Splinterlands is inviting more contributors to help provide game assets to those affected.

Blockchain games have experienced significant closures, resulting in a loss of interest from players and investors alike. However, one persistent game is stepping up to support those affected by these closures by offering free NFT assets.

The cryptocurrency card game Splinterlands is reaching out to players from defunct blockchain games to apply for the newly created recovery fund. This initiative will release $500,000 worth of crypto tokens and in-game assets over the next seven years.

According to discussions reported by Decryption, the team is in talks with other projects, like Hive Blockchain, to rally the industry in an effort to support Crypto Gaming by assisting burned-out players in transitioning to new games and accessing the resources from the fund.

Currently, players involved in Crypto titles such as Pirate Country, Tokyo Beast, and The Walking Dead: The Empire can access the Crypto Gaming Recovery Fund. To qualify, they need to create a Splinterlands account, purchase $10 items (which convert to in-game credits), and provide a wallet address with eligible game items.

These players will then have the opportunity to unlock portions of the $500,000 fund over the next seven years, provided they remain active in Splinterlands. This activity is measured through various monthly challenges, which include participating in five battles.

“We’re inviting our competitors to join us in this initiative because we want to see the industry grow,” said Dave McCoy, Chief Operating Officer at Splinterlands. “We may be the first, but we hope to see many others get involved.”

This year has been tough for crypto games, resulting in the closure of many popular projects like Deckdrop, Ember Sword, Nyan Heroes, and others. While each game has its own reasons for shutting down, they all share a common issue: a diminishing player base left with no games to engage with, often after investing significant funds.

“I’ve been part of numerous communities over the years. […] When a project collapses, it’s an unsettling feeling, especially when you had high hopes,” remarked Blaze, who is involved in sales and marketing at Splinterlands. “We ultimately decided enough was enough.”

The Crypto Gaming Recovery Fund operates under a Decentralized Autonomous Organization (DAO), which determines which games qualify for assistance. While Splinterlands hasn’t specified exact allocations per game, each supported game has an assigned share of the fund.

In its first year, over 2 million SPS (approximately $16,000) in value has already been set aside for the fund. This amount is expected to increase in the coming years, potentially reaching 10 million SPS and 25,000 packs by year seven. Rewards will be distributed based on the number of active players; if only one player is active in a specific pool, they will receive everything, McCoy explained.

“We’ve structured this for seven years because that’s how long we’ve been in operation. Our aim is to continue for another seven,” McCoy added.

Splinterlands is a strategic trading card game that uses NFTs and trades on the Hive blockchain. Initially launched in 2018 as Steem Monsters, it has since evolved and rebranded over the years.

The SPS Governance Token debuted in July 2021, initially valued at over $1 but has since seen a significant drop, now valued at around $0.008.

McCoy noted that throughout the game’s journey, they’ve navigated many challenges typical for crypto games. He suggested that some other games have struggled to survive due to unsustainable models.

Regrettably, McCoy sees the recent closures in the crypto games sector as a necessary cleansing for the industry. Still, he hopes that the Crypto Gaming Recovery Fund can help pave the way for revival, with more contributors expected to come aboard.

“Again, this isn’t solely about Splinterlands; it’s about the wider industry,” McCoy remarked. “We want any game that wishes to participate to join us.”