Shards Protocol Raises $2M to Expand Aura, Its On-Chain Reputation Layer

Web3 milestone tracking platform Shards Protocol has secured $2 million in fresh funding to scale its flagship reputation system, Aura. The round saw participation from prominent investors including Animoca Brands, Kyber Ventures, and Yield Guild Games.

The raise marks a key moment in Shards’ evolution—from a developer tool focused on in-game economies to a broader protocol rewarding Web3 contributions.

From SDK to Reputation Engine

Originally launched as Shards.Tech, the platform offered a software development kit (SDK) for game studios. The tool helped games improve user retention and spending by enabling players and community members to buy and sell fractional shares of in-game teams.

That SDK saw rapid adoption in 2024, contributing to over $400,000 in trading volume during its private alpha. Integrated games reported up to 200% improvements in retention.

Building on this momentum, the team rebranded to Shards Protocol and introduced Aura, a new recognition layer for Web3.

What Is Aura?

Aura turns users’ on-chain contributions—staking, governance, participation—into visible reputation and rewards. The system mints badges for verified activity, which users can display on platforms like X.

The goal, according to CEO Stefano D’Silva, is to recognize and empower Web3’s “silent contributors”: users who support protocols without any formal acknowledgment.

“With Aura, we’re setting a new standard for credibility in the space,” D’Silva said. “This brings meritocracy and transparency to Web3.”

Industry Backs the Vision

• Yat Siu, Executive Chairman of Animoca Brands, said the platform is “revolutionizing Web3 user acquisition” through quests and campaigns.
• Loi Luu, Founder of Kyber Ventures, praised Aura as a step toward earned, verifiable on-chain identity.
• Gabby Dizon, Co-founder of Yield Guild Games, called it “a better way for Web3 communities to grow and organize.”

The capital will be used to enhance Aura’s integrations across the Web3 ecosystem and support an upcoming token launch.

What’s Next?

Shards Protocol has already onboarded over 1 million users and facilitated over $1 million in trading volume across products. The focus now is to grow Aura’s presence, expand its reward systems, and bring more legitimacy to on-chain reputation.Shards Protocol Raises $2M to Expand Aura, Its On-Chain Reputation Layer