Shrapnel: The First Web3 Game Approved for Launch in China
Funding of $19.5 million secures global rollout for Shrapnel
In a significant move, Neon Machine, an independent game studio based in Seattle, has announced its transition to Gala Games' ecosystem, a platform known for its vibrant community and commitment to player-driven innovation [1]. This shift is crucial for Neon Machine's upcoming game, Shrapnel, as it will provide access to China's Trusted Copyright Chain (TCC), the national blockchain for registering and trading licensed digital assets [2].
Shrapnel, a free-to-play, team-based FPS game set in The Sacrifice Zone, is redefining the genre with digital ownership and dynamic, tactical gameplay [3]. The game is poised to enter the Chinese market, a significant move given China's massive gaming population of over 600 million players [1][4].
On August 13th, 2025, Neon Machine announced a $19.5 million investment, led by Gala Games, with participation from existing investors Griffin Gaming Partners and Polychain Capital [3]. This investment will support Shrapnel's global launch and its entry into the Chinese market.
The Trusted Copyright Chain, operated under the National Press and Publication Administration, timestamps copyrights, enforces royalty splits, and settles transactions in renminbi [2]. The new link to China's Trusted Copyright Chain is now included in GalaChain's offerings, providing regulatory compliance for Shrapnel's NFTs and facilitating the game's assets moving between China and the global market using $GALA tokens [4]. Up to 10% of China revenue may be used for periodic repurchases of $SHRAP tokens to support the ecosystem's health [4].
Shrapnel is planned to have a closed access launch later in 2025, followed by an open access launch in early 2026 [1]. Public playtests for Shrapnel are set to continue soon. Users can visit shrapnel.com and follow @playSHRAPNEL on X for updates.
GalaChain, Gala's high-throughput Layer 1, is purpose-built for entertainment, gaming, and DeFi. It is secured by a global node network with 1 $GALA gas fees and offers developers turnkey APIs for wallets, royalties, and bridging [4]. This partnership opens access to China's massive gaming market, including real RMB trading and cross-chain bridging.
Shrapnel's entry into the Chinese market is a significant step forward for the web3 gaming industry. With the web3 gaming market projected to reach $301.53 billion by 2030, Shrapnel is expected to contribute significantly to this growth [4]. Despite the recent challenges, such as financial difficulties, layoffs, and delays earlier in 2025, the transition to GalaChain and the partnership with China are efforts to stabilize and expand the project [5].
Sources: [1] VentureBeat, "Neon Machine raises $19.5 million to grow its team-based FPS game Shrapnel," August 13, 2025. Link [2] Gala Games, "Gala Games partners with China's Trusted Copyright Chain," August 13, 2025. Link [3] CoinDesk, "Gala Games leads $19.5 million investment in team-based FPS game Shrapnel," August 13, 2025. Link [4] TechCrunch, "Shrapnel: The first licensed Web3 game approved for launch in China," August 14, 2025. Link [5] GeekWire, "Neon Machine raises $19.5 million as it transitions to Gala Games' ecosystem," August 13, 2025. Link
- The partnership between Neon Machine and Gala Games, secured by GalaChain, allows for the trading of Shrapnel's digital assets, such as NFTs, using $GALA tokens.
- Shrapnel's assets, including those purchased with real RMB in China, can now be moved between the Chinese market and the global market using $GALA tokens.
- Up to 10% of China revenue from Shrapnel may be used for periodic repurchases of $SHRAP tokens, supporting the ecosystem's health.
- The Web3 gaming market, with Shrapnel as a significant contributor, is projected to reach $301.53 billion by 2030, a testament to the potential of blockchain technology in gaming.
