On November 5, the team behind Moonfrost announced a major shift in the game's direction. The cozy farming RPG, which had previously been built with web3 integration through Open Loot, will now launch as a traditional PC game on Steam. There will be no blockchain, no NFTs, and no crypto in the main version of Moonfrost going forward. At the same time, the team introduced a separate new project: Frost Arcade, a browser-based platform focused solely on web3 gameplay.

Moonfrost Leaves Open Loot and Web3 Integration Behind

Moonfrost first launched in Early Access back in July through Open Loot. Entry to the early version of the game was restricted to players who held NFTs such as a Frost Hunter License or a Gnome Key. Since then, players have taken part in various events like The Hibiscus Event and, most recently, the open Halloween-themed Dahlia Derby that ended on November 3. These events allowed players to earn rewards such as NFTs, tokens like Cryo and Liquid Luck, and even $USDC.

Just 2 days after the Halloween event ended, the team released a statement on X that confirmed the end of its web3 integration. The post reads:

"We are leaving Open Loot. Things have changed a lot over the course of the year and it is no longer sustainable for Moonfrost to continue there… Moonfrost can't cater to both a web2 and web3 audience simultaneously."

With this shift, Moonfrost will launch on Steam as a premium title without any blockchain features. The team emphasized that the game's large scope and slow pace of development didn't suit the expectations of the web3 community, which they said demanded quicker delivery and more financial upside.

"Web3 and web2 audiences are completely different and want different things: web3 want to make money, web2 just want a good game."

Frost Arcade: A New Home for Moonfrost Web3 Players

While the core game is going full web2, the studio is not abandoning its blockchain fans entirely. Instead, they are creating a separate product under the name Frost Arcade. This new initiative is described as a "pure web3 gaming experience," focusing on faster, simpler browser-based games that will be tied into the existing Moonfrost web3 items.

Frost Arcade is designed to be lightweight and nimble, allowing the studio to develop and ship games quickly. Unlike the main Moonfrost game, which required complex systems and heavy art direction, Frost Arcade will center on shorter sessions and arcade-style gameplay. These games will include features such as multiplayer, PvP, co-op, leaderboards, and community events.

"Being a leaner, meaner machine means we can build more, build faster and deliver more value to the community."

Web3 Assets Will Still Be Used in Frost Arcade

Players who collected Moonfrost NFTs or earned web3 currencies will still have ways to use them in Frost Arcade. The team confirmed that the following assets will carry over and have real use case within the arcade:

  • Collectibles like Pickaxes, Workbenches, Gnomes, Fishing Rods, and more will be usable across different games and events.
  • Currencies such as Cryo, Liquid Luck, Event Vouchers, and Gacha Tokens will be rolled over from Open Loot.
  • Licenses like the Frost Hunter License NFT will continue to offer perks across Frost Arcade titles.

Although details on how all items will be mapped into the new system are still in the works, the developers stated they will reveal more about eligibility, balance transfers, and timelines soon.

Frost Arcade Will Be Led by Ric Moore

The two heads of the Moonfrost team will now split responsibilities to support both directions. Ric Moore, the studio's CEO, will be taking charge of Frost Arcade and its web3 development. Meanwhile, co-CEO and Art Director Gina Nelson will focus on bringing the Steam version of Moonfrost to market.

Could Risk to Earn Shape Frost Arcade's Economy?

Back in October, Ric Moore spoke about how the traditional play to earn model had failed. He pointed out that inflationary emissions and weak token performance had made most crypto game tokens unsustainable in 2025. Instead, he focused on a different approach known as "Risk-to-Earn," or R2E.

"The old approach to play-to-earn stopped working. It's inflationary… Risk-to-Earn solves this. Poker is R2E."

While there is no official confirmation yet, some in the community believe that parts of the arcade's design could reflect this R2E structure. Under this model, players pay to join games or events and compete for a shared prize pool. Unlike traditional gambling, winnings are spread across more players, creating more engagement while still allowing developers to keep a margin.

"Imagine a game where there's 10 players, each pay $1 to enter, the prize pool is $10. There's not 1 prize but many smaller ones (minimum prize $0.01). Players compete to get the prizes, whether by skill or luck or a bit of both. Some will come out in profit, some will come out at a loss. None should lose everything."

The structure allows for onchain, skill-based gameplay with rewards paid in USDC or other currencies. Referral bonuses, events, and competitive formats could also be part of the design. But it's unclear whether tokens like $FROST will play a central role in this setup.

Community Response Has Been Largely Negative

The announcement caught much of the community off guard, especially given that Moonfrost had just finished a major event 2 days earlier. Many players had recently spent time and money on NFTs and other web3 items expecting more integration and future value in the main game. Some now feel misled.

On social media, users voiced their frustration. One player wrote:

"You literally rinsed the WEB3 community the last month…dangling NFTs you knew were worthless… You made a killing with it."

Another user commented:

"Not a good move team… The news you gave back was painful. Your thought that this new news will uplift people… can fire back."

Several posts also accused the team of abandoning their supporters and failing to deliver on earlier promises. One user simply asked, "Wen LL refund?" referencing the premium currency Liquid Luck, which many had bought to access the game's crafting systems.

The Shift Follows a Difficult Year for Web3 Games

Moonfrost's pivot comes during a tough period for blockchain gaming. Several other big-name titles like Deadrop, Nyan Heroes and everything in between, have either shut down or moved away from web3 in 2025. High development costs, weak token performance, and a shrinking user base have made the play to earn model harder to maintain.

Moonfrost's team cited these same challenges in their announcement. They admitted the project was too complex and slow to deliver value fast enough for the web3 space. Instead of trying to balance both audiences, they are now choosing to split the experience.

"Moonfrost is costly and slow to make. We struggled to build fast enough to keep up with our players."

With the Steam version now fully focused on casual and cozy gaming, and Frost Arcade handling the blockchain side with short-form titles, the team hopes to serve both sides without compromise.