Alun Evans

Imagine spending countless hours upgrading your race car in your favorite game, fine-tuning every detail and unlocking new features as you play to make it both beautiful and blazingly fast…only to lose it forever when you stop playing the game.&nbsp;



What if you could truly own and monetize your in-game creations? Enter the world of tokenized user-generated content (UGC).



Throughout history, humans have prized self-expression and individuality. And in the gaming sphere, this desire has reached new heights with the rise of UGC. Games like Roblox and Minecraft — which average hundreds of millions of players monthly — have revolutionized the industry by empowering players to create worlds, characters, and experiences.



Yet, one key aspect is missing in the majority of these types of games: true ownership.&nbsp;



While players can create and share content, they have little control over how it’s used or monetized. They spend hours making worlds and upgrading in-game items that add massive value for a studio, driving player retention and enjoyment, without benefiting from the rewards.&nbsp;



Think about it. The average Fortnite player spends a whopping ten <a href="https://www.esports.net/wiki/guides/how-much-time-i-spent-on-fortnite/#:~:text=Most%20players%20spend%20around%206,hour%20a%20day%20on%20average">hours</a> a week playing, and some of the most popular builds in the game are player-created. Epic Games (its creator) is directly benefiting from the time these players put into playing and building in the game.



How can we address this challenge and empower players with real ownership and fairer rewards for their creations?&nbsp;



Tokenization offers a transformative solution.



By representing in-game assets as unique non-fungible tokens (NFTs) on the blockchain, players can assert ownership rights and track their creations’ provenance securely. Smart contracts can automate royalty payments, ensuring fair compensation for player contributions.&nbsp;



To demonstrate this further, imagine if my daughter’s Lego car creation was tokenized. By creating a digital token or NFT of the car, she can formally certify it as her own and earn rewards when it’s traded. She could even receive royalties if someone used her car in their own game. Tokenization makes this possible in the digital realm.



<h2 class="wp-block-heading">The billion-dollar opportunity</h2>



Deloitte predicts that UGC gaming platforms will <a href="https://www2.deloitte.com/uk/en/insights/industry/technology/technology-media-and-telecom-predictions/2024/user-generated-content-video-game-trends.html">pay out</a> nearly $1.5 billion to content developers in 2024. But to realize tokenized UGC’s full potential, we must address negative perceptions surrounding blockchain technology in gaming.



To begin, we need to address the user experience issue. Many early blockchain games suffered from clunky interfaces, complicated wallet setups and a lack of intuitive design. Layer this with exploitative microtransactions (think <a href="https://www.cnet.com/tech/gaming/gamers-hated-virtual-goods-long-before-nfts/">Axie Infinity</a>), and it&#8217;s no surprise mainstream gamers were left wary.&nbsp;



Imagine a gamer having to manually manage private keys or decipher cryptographic hash functions just to play. That&#8217;s a surefire way to deter adoption.&nbsp;



Instead, the focus should be on creating immersive worlds where the blockchain functions invisibly in the background, enabling ownership and monetization without compromising the gaming experience.



The NFT market has also been prone to wild speculation, with some assets selling for eye-popping sums while others go to zero. While this has generated buzz, it has also led to concerns about market stability and the potential for bubble-like behavior.&nbsp;



For tokenized UGC to gain mainstream acceptance, it&#8217;s crucial to foster a more stable, sustainable market driven by the inherent utility and value of the assets rather than mere speculation. This means designing in-game economies with balanced incentives, sinks and faucets to ensure long-term viability. By shifting the focus from speculation to utility, we can build trust and stability in the market.



Read more from our opinion section: <a href="https://blockworks.co/news/memecoin-mania-learn-risk-management">Memecoin mania can teach us something</a>



As more games embrace tokenized UGC, blockchain networks will need to handle a massive influx of transactions. If the infrastructure can&#8217;t scale to meet demand, we risk congestion, high fees and a degraded gaming experience.&nbsp;



We want to avoid another <a href="https://www.bbc.co.uk/news/technology-42237162">Crypto Kitties-style</a> Ethereum network breakdown. To prevent this, developers must choose scalable blockchain architectures that can grow with their player base. This may involve using layer-1 solutions that can bridgelessly connect to other blockchains, sharding or other techniques to increase throughput without sacrificing decentralization or security. It&#8217;s also crucial to optimize smart contracts and game logic to minimize unnecessary transactions and reduce the load on the network.&nbsp;



One of the most important prospects of tokenized gaming is the ability for a users’ in-game assets to move seamlessly between different game worlds. Imagine being able to take your hard-earned sword from one game and use it in another, or having your spaceship navigate through various universes. This level of interoperability would unlock incredible possibilities for player expression and engagement.



<h2 class="wp-block-heading">The road to mainstream adoption</h2>



Achieving this vision requires overcoming significant technical and coordination challenges. Different games may use different blockchain networks, token standards and data models. Bridging these gaps requires robust cross-chain communication protocols and standardized metadata formats.



It will take a concerted effort from developers, players and the wider blockchain community. But if we get it right, the future of gaming will be a more open, collaborative and rewarding space for all.



And we’re on the right track. Over the past two decades, the UGC gaming landscape has undergone rapid transformation, with what once seemed improbable now on the brink of becoming commonplace, thanks to the integration of blockchain technology.&nbsp;



Tokenization is the catalyst for creating this billion-dollar gamer-driven economy, where players have unprecedented control over their creations.&nbsp;



The ownership revolution is here; it&#8217;s up to us to seize it.



<hr class="wp-block-separator has-alpha-channel-opacity"/>


<div class="wp-block-post-author-biography">With over 20 years of experience leading and designing games and tech companies, Alun is well-versed in creating innovative products that tackle experiential and developer challenges. In addition to his stewardship of LAOS Network, he is CEO and co-founder of the company building LAOS, Freeverse, which focuses on building scalable blockchain infrastructure. His history as the co-creator of ‘Barcelona World Race &#8211; THE GAME,’ a cutting-edge video game enabling virtual participation in real-world events, and his wider passion for gaming, have fed into his vision for LAOS Network as a solution for the intersection of Web3 tech with both gaming and real-world applications. Alun also led Shar3d.io, a pioneering company enabling collaborative 3D web applications, and served as CTO of Bodypal.com, a virtual garment services company. He holds a Ph.D. in Medical Physics from University College London.

</div>


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Gaming

Gaming needs tokenization

Mark Long

Play-to-earn gaming wasn’t fun while it lasted.&nbsp;



Incentivizing players to earn digital assets in games with little regard for gameplay quality or player needs left a bad taste in everyone’s mouths.&nbsp;



After 1.13 million unique active wallets connected to decentralized applications in games in 2022, research suggested that the GameFi industry <a href="https://www.businessresearchinsights.com/market-reports/gamefi-market-102420">could reach $38 billion by 2028</a>, as hordes were swept away in the hysteria of “getting paid to play the games you love.”



But they didn’t love the games, did they? The quality wasn’t there. Players were stuck in a mining loop, grinding out the value of characters whilst reliant on a Ponzi scheme that required a constant flow of new players to substantiate any accrued value.



The term “play-to-earn” (P2E) also created a veil of ownership, of which there was none actually involved. Rich NFT owners and the platforms themselves exploited low-earning players who were hyper-dependent on the in-game tokenomics, and who weren’t always able to extract or transfer any sovereign value.



Yet the Blockchain Gaming Alliance suggests that even with the implementation of sophisticated tokenomics that truly serves players, P2E games would’ve ultimately failed.&nbsp;



Players care more about playing a high-quality game than they do about earning money: The shine wears off. A game’s success is always parallel to its level of quality.



Now, after the P2E bubble, it is likely that we still start to see mutually beneficial, innovative in-game creator ecosystems instead —&nbsp;games with creative expression and sovereignty serving as bonus layers. Queue the rise of Create2Own.



<h2 class="wp-block-heading">The emergence of “Create2Own”</h2>



Players have been creating in-game items long before Web3, of course.&nbsp;



Games like Minecraft, and more recently, Roblox, are obviously very popular. But the same ownership issues arise. Users spend hundreds of hours making the game profitable by creating levels, assets and in-game environments that drive engagement, with only the studio benefitting from owning the IP.&nbsp;



Fortnite’s registered player count has consistently risen through the hundreds of millions over the years, and this year they have <a href="https://www.dexerto.com/fortnite/best-fortnite-creative-2-0-map-codes-2094338/">continued to drive interest from players </a>who thrive on content creation.&nbsp;



But the same issue with player ownership crops up — players don’t own or benefit from what they make.&nbsp;



“Earning” is based on a digital sharecropping model through which players receive a cut of accrued value for their own creations, with the platform itself taking the lion’s share. Epic Games only places 40% of net revenue from Fornite’s item shop into an engagement pool, from which creators receive monthly payments dependent on engagement. The rest (60%) goes to the studio, despite the creator doing most of the work.&nbsp;



Sovereign ownership is not a new concept, but there seems to be a delay, or resistance, to full integration within the gaming industry.



Before, I’d get bored of a Playstation game and go down to Gamestop and trade it in: I’d receive $15 and spend it on buying a new game; Gamestop would sell my old game for $20. In the last 10 years, we’ve shifted from physical disks to downloadable premium — and are required to keep purchasing content from overarching publishers if we want to play with friends. So when the unfamiliar concept of NFTs comes along as a way to improve gameplay, all I see is a cartoon monkey whose value has crashed 500% — naturally, I’m skeptical of their usefulness.



Read more from our op-ed section: <a href="https://blockworks.co/news/nft-critics-slap-digital-art">No, it’s not okay to physically assault NFT critics (even if it’s just a slap)</a>



But there is real potential for power to be transferred to the player. A marketplace that enables the sovereign, decentralized ownership player-to-player trading of utility-backed items would, quite literally, change the game. This could be supported by the development of in-game marketplaces that enable cut-price, one-time trade-offs with the studio (not just other players), where users can exchange all of their accrued value for cryptocurrency. The game itself can bring new players in by offering bundles out of these items that were uniquely created and traded.



Both sides win: The player has created items that they’ve used in the game and recorded on blockchain, which can be leveraged. Say a major streamer won a huge battle with a certain sword — the record of win will add value to the sword. The game attracts more users with the evidence of what’s on offer, creatively and economically, through the fruits of another player’s labor. Value is equally distributed. Eventually, players might be able to bridge their asset into another game using blockchain, which opens the door to collaboration and interoperability between titles and their fanbases.



<h2 class="wp-block-heading">First things first</h2>



Before the inevitable boom in popularity of self-ownership truly takes hold, players need to be empowered to create in-game items that they truly own.



AAA studios must be smart enough to prioritize the development and integration of cutting-edge creator tools and initiatives that maximize the potential of Web3 technology — before touting the standard blockchain sell-in of economic liberation.



Read more from our op-ed section: <a href="https://blockworks.co/news/blockchain-gaming-decentralization">There’s nothing wrong with Web3 gaming, except everything you’re doing</a>



When it comes to providing Web3-backed creator tools, the industry is still in its infancy. The main barrier to integration is the persisting tendency for studios to overcomplicate. Creator tools need to be quick and easy to use, with as little emphasis on the backending blockchain technology as possible.



There should be no pressure and no promised incentive constantly being pushed onto players in the way that we saw with play-to-earn.&nbsp;



For Create2Own to truly revolutionize, studios must let components of verification, traceability, trusted exchange and genuine rewards be the organic byproduct, remaining anchored to their core purpose of developing a AAA-game. The transition of the player into creator — and owner — will then become seamless if they get it right.



<hr class="wp-block-separator has-alpha-channel-opacity"/>


<div class="wp-block-post-author-biography">Mark Long is CEO of Shrapnel, a AAA first-person extraction shooter, with a creator ecosystem that empowers players to own their creations and shape the future of the game. A former head of Xcloud at Microsoft and publishing at HBO, he is a 27-year game industry veteran who has produced more than 32 titles on every platform from SEGA Genesis to Oculus Rift. Established across many media forms, Mark is also a member of the Producers Guild and a New York Times bestselling graphic novel author.</div>


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NFT gaming

Play-to-earn was a bust — we need to create-to-earn

Shalini Nagarajan

Web3 gaming company Immutable has established itself as a major player in the blockchain space.&nbsp;



The Sydney startup places a strong emphasis on layer-2 solutions to improve scalability and affordability within the Ethereum NFT ecosystem — critical aspects to any smooth gaming experience.



After five years of operation, Immutable considers Web2 its primary competitor over any crypto peer.



In March, the firm <a href="https://blockworks.co/news/immutable-and-polygon-join-forces-to-attract-web3-game-developers" target="_blank" rel="noreferrer noopener">teamed up with Polygon</a> to streamline onboarding processes for game studios and developers keen on enabling crypto in their products.



Alex Connolly, co-founder of Immutable, explained the endeavor to create a gaming ecosystem centered around Ethereum and Polygon&#8217;s <a href="https://blockworks.co/tag/zkevm" target="_blank" rel="noreferrer noopener">zkEVM technology</a> that can stand up to Web2 gaming’s best. 



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Blockworks: How does zkEVM utilize zero-knowledge proofs to enhance transaction speeds and reduce gas fees?



Connolly: zkEVM is the holy grail of Ethereum scaling because it combines the EVM environment, which lets you run Ethereum smart contracts. So nine out of the top 10 chains are all EVM chains, which means that developers that write Solidity smart contracts, they’re used to the developer tools. There are thousands of people who already know how to program for those chains, as opposed to new chains like Aptos or Sui, where you need to learn a new language, or where the execution environment is really different.&nbsp;



So you get access to the same Ethereum environment. But if you use Ethereum itself, you&#8217;ll find that transactions are slow and costly, which is impactful for domains like gaming. Some chains take this approach and they do a very low-cost EVM chain where it looks like Ethereum, but you can do faster transactions. That comes at a big trade-off because the security and the decentralization of the chain is heavily reduced.&nbsp;



What zkEVM lets you do is have the same EVM execution environment with high speeds, with the security of Ethereum. The way you do that is through a rollup where you batch a number of transactions together, generate a proof that those transactions represent a valid state change, and then publish that proof to Ethereum layer-1.&nbsp;



A smart contract on Ethereum layer-1 verifies that proof. Let&#8217;s say you have ETH on layer-1, you move it into a zkEVM on layer-2, you can interact with layer-2 smart contracts, you can go participate on that chain, and then you can bridge that ETH back to layer-1 and you won&#8217;t have to worry about it being stolen by a malicious chain.



Blockworks: What is the distinction between Immutable X and Immutable zkEVM?



Connolly: Immutable X was our first application-specific rollup. That is basically a rollup that doesn&#8217;t support all the functionalities of the EVM, which is the smart contract execution environment. Immutable X only supports exactly the things that you need to do to build a game. So it supports trading, minting and transferring NFTs. And it supports all those things in a hyper-optimized way. It&#8217;s just an API interaction with immutable and it&#8217;s built on Stark technology.&nbsp;



Immutable zkEVM offers an environment to developers which is more flexible. You can have custom smart contracts, it’s more composable, you can interact with other people&#8217;s smart contracts. It has slightly less performance because it has to cover a wide variety of customer interactions. But at the moment, Immutable offers both to developers.



Blockworks: What are some lessons learned from the architecture of Starkware that may have influenced your approach?



Connolly: One thing that we definitely learned from Starkware is that many customers only need those basic functions, so they need minting, trading and transferring. Immutable X is perfect for them, because it means that you can build a game really simply and have access to amazing scaling.&nbsp;



What zkEVM gives you is compatibility with Ethereum which means that for a lot of games that are already on Ethereum, or Polygon or Avalanche, it&#8217;s much easier for those games to come and take advantage of the rest of the Immutable platform without having to leave the EVM behind.&nbsp;



Blockworks: Does the concept of superchains factor into Immutable’s framework and what role do they play in enhancing scalability?



Connolly: &#8220;Superchains&#8221; is not a very well-defined term as things stand. There are a lot of people talking about infrastructure for spinning up new additional app chains (application-specific blockchains). In our context, a particular game might want or need its own chain or rollup because it needs either some degree of customization, or it needs its own sort of horizontal scale, like it doesn’t want to compete for block space with any other game. 


<div class="wp-block-image">
<figure class="alignright size-large is-resized"><img loading="lazy" decoding="async" src="https://blockworks-co.imgix.net/wp-content/uploads/2023/07/AlexConnolly.jpg?w=1024&amp;h=1024" alt="" class="wp-image-61303" width="180" height="180" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2023/07/AlexConnolly.jpg?w=1280 1280w, https://blockworks-co.imgix.net/wp-content/uploads/2023/07/AlexConnolly.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2023/07/AlexConnolly.jpg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2023/07/AlexConnolly.jpg?w=150 150w, https://blockworks-co.imgix.net/wp-content/uploads/2023/07/AlexConnolly.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2023/07/AlexConnolly.jpg?w=257 257w, https://blockworks-co.imgix.net/wp-content/uploads/2023/07/AlexConnolly.jpg?w=261 261w, https://blockworks-co.imgix.net/wp-content/uploads/2023/07/AlexConnolly.jpg?w=219 219w, https://blockworks-co.imgix.net/wp-content/uploads/2023/07/AlexConnolly.jpg?w=80 80w" sizes="auto, (max-width: 180px) 100vw, 180px" /><figcaption class="wp-element-caption">Alex Connolly, Immutable co-founder </figcaption></figure></div>


We believe there is a potential future for app chains and more customized blockchains. At the same time, most games at the moment don&#8217;t need their own chain, in terms of their scaling needs. And in terms of customization, they&#8217;re actually better off benefiting from the network effects of building on a shared chain. So when you build on Ethereum, there are lots of users that already have ether in their wallets. 



Most games in our view should start on a shared chain and eventually, when they actually have mainstream traction, that&#8217;s then the point where they go to their own app chain.&nbsp;



Blockworks: In what ways does Immutable plan to further expand and evolve its offerings to meet the needs and demands of the community?



Connolly: The opportunity for games to have their own chain is incredibly exciting. But to get it right, you need a few things. Firstly, you need the demand and you need people to want to use the block space on that chain. Secondly, you need a user experience that actually makes sense.&nbsp;



Imagine if you&#8217;re a gamer, and you have a Call of Duty chain, World of Warcraft chain, a FIFA chain and then you have a wallet on each of those chains. It sounds complex even just describing it, let alone for average people who are interfacing with it. We operate in a unique position in the industry, in that we both offer technology at the rollups layer with Immutable X and Immutable zkEVM. And also we offer up-the-stack products like Immutable Passport and Immutable Checkout, which help developers build games that make sense to Web2 players. 



We’re working with the Polygon team to offer additional app chains using Polygon supernets. We are in a position to make sure the user experience of interacting across those chains is smooth and makes sense to gamers.&nbsp;



Blockworks: Who do you consider key competitors offering similar solutions to the community?



Connolly: By far our biggest competitor is the Web2 gaming industry. We want everyone who builds Web3 games to be using Immutable products. But realistically, our competition is the exploitative ownership model of Web2 games where you rent items instead of owning them and you can&#8217;t sell the things that you spend your money on in games.&nbsp;



What we need to do to be successful there is to demonstrate that blockchain games have the capability to actually add value to players’ lives, not as a theoretical investment vehicle. But as, “Hey, when you buy something in a game, we believe that you should own it.”



Blockworks: Are you using artificial intelligence tools to improve your offerings?



Connolly: We have our own studios, which helped to produce some of the best content in the space for our platform with games like God&#8217;s Unchained, Guild of Guardians and Shardbound. In those games, we definitely use AI for things like art and game interactions.



On the platform side of things, I think we use AI in a more traditional way in terms of a SaaS technology company where we can optimize our products across the board. As Web3 gaming takes off and when we have millions of users using products like Immutable Passport, we’re hopeful that we&#8217;ll be able to use AI to deal with problems like transaction security. 



Keeping users safe in this environment requires us to build a lot of the same infrastructure as banks have when they&#8217;re detecting things like transaction fraud, and also recommendations for when users are making purchases for these assets. We think there are lots of ways that we can offer additional value at the wallet layer and the checkout layer by improving those experiences.&nbsp;



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Ethereum

We compete with Web2’s ‘exploitative ownership model’: Immutable co-founder

Michael Bodley

<div id="highlights-block_a7a4bb5f1e5f523a41031b947c7b872c" class="highlights">
 <ul>
 <li>The company raised about $3 million at a valuation of about $30 million from a number of venture firms</li>
 <li>The startup has also partnered with a number of well-known gaming guilds, which it plans to tap in a bid to grow its market share</li>
 </ul>
 
</div>



Blockchain-based gaming platform <a href="https://docs.openblox.io/" target="_blank" rel="noreferrer noopener">OpenBlox</a> has raised its seed round as the company looks to ride a wave of interest in play-to-earn gaming in preparation of its first game launch later this year.



OpenBlox raised about $3 million at a valuation of about $30 million and plans to earmark the funds for product and business development, game design and additional staffers. The round was led by venture capital firm Shima Capital, a recently launched San Francisco firm helmed by veteran venture capitalist Yida Gao. Shima, after this story was published, reduced their contribution by an unspecified amount. 



Venture firms including 3Commas Capital, 100&#215;100 Venture Capital, Digital Strategies and MC Ventures were also set to participate in the seed round.



MC Ventures withdrew their commitment after publication, as did Digital Strategies. Representatives for the firms did not respond to a request for comment. 



OpenBlox, which employs ethereum virtual machine (EVM) technology in an effort to create a bridge between blockchains, also has an NFT marketplace in the works — and in the meantime has been partnering with a number of prominent gaming guilds.



The team plans to roll out three games — players can deploy blockchain applications, including NFT (non-fungible tokens), across the trio of metaverses. The gaming platform intends to create a Web3-powered community, as opposed to minting digital collectibles on a one-off basis — an approach that may deliver immediate profits, but one that rarely drives sustained user engagement.



It&#8217;s planning its first experience, dubbed RunBlox, to be released publicly in May on the Avalanche blockchain — along with an in-game token, $RUX. To play the game, users are required to hold a RunBlox shoes NFT, which will be partially distributed via an airdrop. 



Its digital universe is based on a collection of 7,998 genesis blox NFTs that can breed via in-game mechanics, similar to blockbuster play-to-earn giant Axie Infinity.



The fundraise comes as a growing number of top-tier traditional game-makers — including Ubisoft — are looking to employ blockchain elements.



Those blue-chip, so-called AAA developers have the leg up on game design and gameplay, industry participants say, but <a href="https://cms.blockworks.co/ubisoft-nft-efforts-are-off-to-a-rocky-start/" target="_blank" rel="noreferrer noopener">have faced a tough sell</a> from gamers wary of NFTs because of environmental concerns.



After starting with just Ethereum, the team has pivoted onto the Arbitrum blockchain, a side-chain, as it works to expand its decentralized finance (DeFi) dealings.



The startup plans to introduce an in-game token, which perhaps could convey governance features down the line. The longer-term plan is to create a decentralized autonomous organization (DAO) that would be controlled by game players.



Gao, who has previously backed other play-to-earn Web3 startups, said the team has “deep experience” in both traditional video games and as crypto natives. OpenBlox is also working with a number of top-tier developers and graphic designers, which helps, he said.



The challenge is to bridge avid traditional video gamers — accustomed to stunning graphics and engaging gameplay — with legions of crypto natives who may be less choosy on the gameplay front, but more particular when it comes to the blockchain technology in play and the potential to make money as a consumer in exchange for their time and loyalty.



“You want to basically have these new types of ways to play games, where the ownership is in the hands of the players, not the developers, and you&#8217;re able to bring in other users and bring in other counterparts to the space,” Gao said. “So, instead of having all the graphic designers and the people making the games in the studios control everything, you can bring in others.”



Elle Sia, a Web3-focused investment director at OpenBlox backer Digital Strategies, said the game&#8217;s graphics are significantly sharper than your average crypto-native game.&nbsp;



And the team, according to Sia, has been taking pains to ensure the gameplay is fun and engaging.



“It needs to be fun,” Sia said. “Otherwise, no one&#8217;s going to play it. Otherwise, it becomes a bit of a Ponzi, so far as you need new players to come in.”



The startup will also look to lean heavily on its partnerships with gaming guilds — including Real Deal Guilds (RDG), Ancient8, Good Games Guild and BreederDAO — to drum up interest in the metaverse venture and gain players worldwide.&nbsp;



Dr X, the pseudonymous OpenBlox founder, said in a statement that the startup’s incoming investors “bring a large network of stakeholders” to the venture.



Updated Dec. 14, 3:15 pm ET: Shima Capital reduced the size of its commitment after this story was published, and Digital Strategies, as well as MC Ventures, rescinded their capital pledges.



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