Splinterlands leads Gamefi Trust rebuild with $500,000 recovery fund

In a bid to address the issue of trust following the collapse of several blockchain games, Splinterlands and its governing body, SPSDAO, have decided to launch a $500,000 (£390,000) Crypto Gaming Recovery Fund. 

This community-driven initiative is designed to provide both immediate financial support and a sustainable pathway for players affected by the collapse of failed Web3 games such as Ember Sword.

By enabling players to redeem verified Claim Tokens from defunct projects, the programme aims to ensure fair compensation while simultaneously introducing them to the Splinterlands universe.

The initial $500,000 commitment is expected to grow over the programme’s seven-year lifespan.

Contributions will come from Splinterlands, partner donations, SPSDAO allocations, and voluntary earnings from existing players. This collaborative structure ensures that the fund is not only sustained but also scalable.

By integrating recovery efforts with ongoing participation, Splinterlands is turning setbacks into renewed opportunities for players, reinforcing long-term confidence in decentralized gaming.

Since its launch in 2018, the blockchain game Splinterlands has facilitated over four billion matches. Its governance is managed by the SPSDAO, a decentralised autonomous organisation.

Technical failures and project closures are a pervasive challenge across the gaming industry, affecting esports, PC gaming, and the emerging Web3 sector.

While blockchain gaming has its success stories, like Reaper Actual and ROM: Golden Age, it is particularly susceptible to high-profile cancellations.

A case in point is the Ethereum-based MMORPG Ember World, which closed its doors in May. The project cited difficulties in raising additional capital and a volatile GameFi market that rendered its operational model unsustainable. 

Similarly, the shutdown of Solana-based shooter Nyan Heroes in 2025 details how even well-resourced projects can fail. Despite assembling a team with experience on flagship titles like Halo and securing $13m in funding, the game faced critically low user retention. Strong initial feedback from beta testing could not compensate for this lack of sustained engagement, leading to the project’s termination.