Shards Protocol has raised $2 million in a strategic funding round to advance the development of Aura, a novel Web3 reputation system designed to convert users’ on-chain activity into tangible reputation metrics and reward mechanisms. The funding round saw participation from major industry players including Animoca Brands, Kyber Ventures, and Yield Guild Games.
Aura: Turning On-Chain Activity into Reputation
At the heart of Shards Protocol’s mission is Aura a recognition and rewards layer that brings meaning and visibility to users’ on-chain contributions. Users can earn badges and build a verifiable reputation profile based on their blockchain activity. These digital accolades are not only visible within Web3 platforms but also prominently displayable on social platforms like X (formerly Twitter), allowing users to showcase their Web3 credentials publicly.
As users mint more badges through activities such as participating in DAOs, engaging with DeFi protocols, or supporting NFT communities, they unlock tiered rewards, encouraging ongoing interaction across the Web3 ecosystem.
Backed by Industry Leaders
The $2 million funding round marks a significant step in Shards Protocol’s evolution. With backing from Animoca Brands, Kyber Ventures, and Yield Guild Games, the project is positioned to expand Aura’s integration across various dApps and blockchain environments.
Gabby Dizon, co-founder of Yield Guild Games, praised the initiative, stating:
“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.”
From SDK to Social Layer: The Evolution of Shards Protocol
Formerly known as Shards.Tech, the company initially provided a developer-focused SDK that allowed game studios to tokenize engagement by enabling players to trade fractional shares of gaming teams. During its private alpha in 2024, this model drove a 200% increase in retention and over $400,000 in trading volume.
However, as CEO and co-founder Stefano D’Silva noted, the team quickly saw a broader opportunity:
“We onboarded over 1 million users across all products and generated $1M+ in trading volume, but we quickly realised that Web3 needed more. That is why we introduced our flagship product Aura—a recognition layer that transforms your on-chain contributions into reputation and rewards.”
What’s Next?
Looking ahead, Shards Protocol plans to roll out more integrations, expand Aura’s feature set, and move toward a native token launch. The project aims to become a fundamental layer in the Web3 ecosystem, empowering individuals and communities to gain recognition and utility from their on-chain behavior.
With this funding, Aura could become a central pillar in how digital identity and contribution are measured across decentralized networks making blockchain activity not just trackable, but meaningful.
About Shards Protocol
Shards Protocol is a Web3 infrastructure project developing Aura, a decentralized reputation and rewards system built on top of blockchain activity. With a focus on recognition, transparency, and interoperability, the company aims to drive engagement and trust across decentralized ecosystems.
