Blockchain FPS Shrapnel has released a monthly dev blog series to share its latest game updates as it heads toward public launch in Q1 2026. The team says the goal is to keep players in the loop with behind-the-scenes changes as the shooter continues development.

In the first entry for September, Neon Machine gave a rundown of updates across weapon systems, UI, sound, economy, and art. These changes are still in testing and will be refined further before the full release.

Recoil Overhaul and Combat Tweaks

One of the biggest changes was to weapon recoil. The team has removed random horizontal recoil and replaced it with a fixed curve-based pattern for each gun. This means players can now learn recoil behavior over time, giving more control during fights.

The devs also adjusted how spread works depending on player state. Firing from the hip, crouching, or aiming down sights now affects shot accuracy in different ways. Every first bullet will hit exactly where it's aimed, except for shotguns which behave as usual.

Other changes include recoil reduction when crouching or aiming, while base stats are used when firing outside of ADS. This system is still being balanced based on internal testing and player feedback.

Hit Detection and Accuracy Fixes

Shrapnel's developers also focused on improving how shots register. After getting feedback from the community, they rebuilt the shot resolution system to make hit detection more reliable.

The new system improves how the server and client process bullet logic. It reduces lag and network load while making shots feel more consistent. Bullet pooling was also added, which reuses bullet objects during fights instead of creating new ones. This helps improve game performance, especially in firefights.

Live testing is now underway to make sure these changes work properly in real matches.

UI and Audio Adjustments

The team continued work on visual and audio polish. New match announcements like "Storm incoming" have been added. UI sound effects were rebalanced to make gameplay feedback clearer. Audio for team events like canister drops or steal attempts was updated to stand out more during action.

On the UI side, reticle designs and hit marker styles are being tested. The team also fixed an issue where shots didn't align with the crosshair. Icons and loot markers now fade when centered on screen to reduce clutter. They've also added a system to automatically clear dropped loot (ammo, medpens, and grenades) after a short period to improve performance. 

New Operator and Map Changes

A new Operator called Doug, also known as The Rookie, has been added to the game. He will be the default character for players who don't own or buy another Operator.

On the map side, lighting on the night map was adjusted to make things easier to see. Some interiors were cleaned up, and collision issues were fixed. These visual updates are part of ongoing work to polish map design before launch.

Cosmetic planning is also in the works. New weapon skins, charms, and other content are being scheduled for future builds.

First-Time User Test and Economy Work

The team also ran a full simulation to see how new players experience Shrapnel. It looked at how missions play out, how fast players progress, and how Operators and rewards unlock. Doug, the new default Operator, will be the first character for anyone who hasn't bought or earned one.

They also reviewed the game's economy. This included Extraction Pack contents and reworking parts of the METAL points system. The team tested how METAL is earned and spent, checked how fiat payments fit into the system, and began preparing for an audit. 

There's still more in the works. That includes refining mission content, tuning how Operators and rewards unlock, and updating how the Recycler system handles reward tiers. The Genesis Operator NFT collection is also being reviewed for future use.

A Big Year of Changes for Shrapnel

Shrapnel's new monthly dev series comes after a busy year for the game. In April, it became the first foreign web3 title approved on China's Trusted Copyright Chain. This move gave it legal rights to sell in-game items as tokenized property under local law.

Then in July, the game's publisher Neon Machine said it would leave Avalanche and move to GalaChain. This change supports its expansion into the Chinese market. A bridge is now in the works to connect GalaChain to China's permissioned blockchain, and it's set to go live in Q1 2026.

Despite this shift, gameplay and core systems will remain the same across regions. The SHRAP token, now hosted on GalaChain, will still be used to buy in-game assets. Players will pay gas fees using GALA, Gala Games' native token. Neon Machine also said it will use up to 10% of revenue from China to buy back SHRAP tokens from the open market.

$19.5M Raised for Global Expansion

In mid-August, Neon Machine raised $19.5 million in new funding. Gala Games led the round, with support from Polychain Capital and Griffin Gaming Partners. The money will help finish development and launch the game both globally and in China.

A localized version of Shrapnel is expected to go live in China by the end of 2025. The public launch for both versions is still scheduled for Q1 2026.

The legal model being used in China will allow players to own and trade items like skins and weapons with full government approval. A deal was signed with Lingjing Game Labs, the digital arm of China's People's Daily, to handle local compliance and asset distribution.

Fallout from GalaChain Partnership

The shift to GalaChain has caused backlash in the web3 gaming space. Some creators on CT called Shrapnel a failed project and accused Gala of replacing original teams. Others mentioned past legal issues involving Gala and studios like Gamedia, who claimed Gala failed to deliver on earlier deals.

New CEO and Studio Struggles

Neon Machine also went through internal changes. In December 2024, Ken Rosman took over as CEO. He replaced Mark Long, one of the studio's founders, who now works as an advisor.

Rosman has a long background in games, having worked on titles like Halo Wars and Sunset Overdrive. His appointment followed legal trouble between Neon Machine and 4D Factory, its largest investor. The two sides clashed over board control in late 2023, which slowed progress. After that, the studio said it planned to raise new funding through a round led by the Blizzard Avalanche Ecosystem Fund.