Proof of Play, the a16z-backed studio behind onchain RPG Pirate Nation, is shutting down after failing to build a sustainable business around its Web3 gaming thesis.

CEO Amitt Mahajan says 'Play-to-Earn is fundamentally broken.' At its peak the studio was paying up to $4,000 a day to subsidize players' gas fees on Polygon. Proof of Play raised $33M in 2023 in a round led by a16z, and has now open-sourced the Pirate Nation Unity client under an MIT license as it winds down.