Proof of Play shuts down as PIRATE falls 14% to $0.0011

Proof of Play, the a16z-backed studio behind the onchain RPG Pirate Nation, is ceasing operations after failing to build a sustainable Web3 gaming business.

PIRATE fell 14 percent to about $0.0011 after Proof of Play said Aug. 4 it will cease operations and open-source Pirate Nation's code and artwork.

"We couldn't build a product and sustainable business that proved out this thesis at scale," Proof of Play said in a statement on X. The studio launched in 2022 with the belief that blockchain games could help create a new, decentralized internet.

Proof of Play raised $33 million in a September 2023 seed round led by a16z and Greenoaks, according to Fortune. PIRATE trades near $0.0011 with a market value around $803,000, down roughly 99.8 percent from its all-time high of $0.4757, CoinMarketCap data shows. Daily volume sits near $209,000, with limited liquidity meaning small trades can move the price sharply.

The independent Pirate Nation Foundation will continue supporting the PIRATE token, while mobile game Shiba Story Go was acquired by an undisclosed third party and will operate independently.

Pirate Nation, a fully onchain role-playing game, shut down Sept. 18, 2025, after peak daily active wallets of more than 100,000 fell to about 10,000. Keeping the game and its two Arbitrum L3s, Apex and Boss, running cost roughly $150,000 a month, the studio said at the time.

The game's closure followed a broader retreat from play-to-earn mechanics. Co-founder and CEO Amitt Mahajan, who previously co-created FarmVille, said in July 2025 that the studio was "done giving tokens away," calling play-to-earn "fundamentally broken." Mahajan has since left Proof of Play, and co-founder Adam Fern now heads product for DeFi at Robinhood. Tracxn recorded a headcount of two at the studio as of May 31, 2026.

Proof of Play released Pirate Nation's Unity client and smart contracts under an MIT license, with artwork and Founder's Pirate NFT files carrying a CC0 license for unrestricted reuse. The studio also published PopBot, its internal tool for coordinating AI coding agents. The Proof of Play Arcade, launched on Abstract on July 31, 2025 with YGG Play as a publishing partner, remains online, with one credit costing roughly 50 cents in ETH.

The closure follows similar pressure across Web3 gaming. Uncharted closed alongside Fishing Frenzy after failing to establish a sustainable crypto gaming business, and Yield Guild Games shut its YGG Play arm and cut 35 positions.

The next verified updates will concern the closure timetable, the identity of Shiba Story Go's buyer, and the foundation's plans for PIRATE. Until then, Proof of Play's statement leaves its token ecosystem alive but ends the company that built its central products.

This article is for informational purposes only and does not constitute investment advice.