Seattle-based game studio Neon Machine has raised $19.5 million to fuel the global launch of its blockchain FPS, Shrapnel. The investment was revealed yesterday, with the funding spread across two rounds. The latest round was led by Gala Games and supported by key investors Griffin Gaming Partners and Polychain Capital.

This funding will help bring Shrapnel to a worldwide audience and fast-track its entry into the Chinese market. A closed version of the game is expected in China in late 2025, with a full open release set for early 2026.

Shrapnel raises $19.5M to fuel global launch

Shrapnel Joins Gala Games Ecosystem

As part of this expansion, Shrapnel has now moved to Gala Games' ecosystem. Gala is known for its focus on blockchain-based ownership. Neon Machine's transition to GalaChain marks a new phase for the studio, and reportedly brings the project closer to web3's vision of player-owned economies.

"This funding is a testament to the passion and potential of Shrapnel, enabling us to deliver an action-packed FPS experience that empowers true ownership," said Ken Rosman, CEO of Neon Machine. "We're excited to align with Gala Games' player-first, community-driven approach as we enter this next phase of growth."

A Big Push into China

The deal also supports Shrapnel's expansion into China, one of the world's largest gaming markets. The game has become the first foreign web3 title approved to run on China's Trusted Copyright Chain, a government-backed blockchain. This move is expected to connect Shrapnel to over 600 million players and support real RMB trading, cross-chain bridges, and legal ownership of in-game assets.

Xuan Hongliang, Director of the National Operation Center of the TCC, confirmed the strategic move:

"We are delighted to announce that Shrapnel has signed a cooperation agreement with Gala Games, a globally leading blockchain platform focused on the gaming sector, to establish a strategic partnership. Together, they will jointly invest in developing a large-scale FPS game targeting over 600 million Chinese gamers."

He added that the partnership will build a cross-border bridge between China's TCC and GalaChain to support legal trading, distribution, and protection of digital game assets.

From Avalanche to GalaChain

In July, Neon Machine announced that Shrapnel was leaving Avalanche for GalaChain to better serve its expansion plans. The move will allow the game to comply with Chinese regulations while supporting global players through separate versions of the game.

Despite switching chains, the game's token features and core gameplay will remain consistent. The SHRAP token, previously on Avalanche, will now run on GalaChain. Players will still use it to buy in-game assets and cosmetics. Gala's native token, GALA, will be used for gas fees across all transactions, including cross-chain transfers between global and Chinese markets.

According to Neon Machine, up to 10% of revenue generated in China will be used to buy back SHRAP tokens from the market. This forms part of a broader plan to support token liquidity and long-term value.

Real Digital Ownership, Backed by Law

Apparently, the game's legal status in China is one of its most groundbreaking features. The TCC offers legal protection for digital items such as skins, weapons, and gear. These assets can be minted, tracked, and traded as legal property under Chinese law.

"This cooperation provides a compliant solution for overseas high-quality content to enter the Chinese market," said a spokesperson from TCC. "Copyright is a global consensus. Based on this consensus, they build a blockchain digital asset system, ensure cross-border copyright circulation, and show the practical value of global promotion."

To roll out the localized version, Neon Machine also partnered with Lingjing Game Labs, the digital division of People's Daily. This group will handle local distribution, asset minting, marketplace moderation, and legal compliance.

Shrapnel

What Is Shrapnel?

Shrapnel is a free to play extraction shooter that combines fast action with deep strategy. Players step into The Sacrifice Zone to collect Sigma, a powerful material from meteorites that boosts their abilities. They fight to extract loot before dying or being looted by others.

The game includes dynamic systems such as meteor showers, moving loot stockpiles, area denial grenades, and fast respawns. It's built for competitive team-based play and supports both casual and serious players.

The developers say the game is designed around real ownership. Players can buy, sell, and trade items using blockchain tech. Items earned or bought in-game can be tokenized and stored on-chain.

In 27 days of paid early access in 2024, Shrapnel players completed over 3.7 million matches. Public playtests will continue soon as the game moves toward full release.

Neon Machine's Recent Journey

The studio behind Shrapnel has seen big changes in the past year. In December 2024, Neon Machine named Ken Rosman as CEO. Rosman is a veteran in the games industry, with experience from Xbox, Halo Wars, and Sunset Overdrive. He took over from co-founder Mark Long, who now acts as an advisor.

This leadership shift followed legal trouble with major shareholder 4D Factory. The two sides clashed over board control and direction, leading to a legal standoff in late 2023. To recover, Neon Machine raised funds through the Blizzard Avalanche Ecosystem Fund and other backers. The new $19.5 million investment now sets the studio on firmer ground.

The Role of GalaChain

GalaChain is a Layer 1 network made for games, media, and DeFi. With fixed $GALA gas fees and a global node system, it powers Gala's latest lineup of AAA games, films, and apps.

The new partnership links GalaChain to China's TCC network, which will allow legal asset movement across borders. This bridge is planned to go live in early 2026.

Eric Schiermeyer, CEO of Gala Games, said:

"Connecting GalaChain to the Trusted Copyright Chain is a milestone for global gaming and for Shrapnel. By leading this investment round in Neon Machine, we are backing Shrapnel's entry into China's vast market and its vision of thrilling gameplay with true digital ownership."

Looking Forward

Shrapnel's early access is ongoing through the Epic Games Store. Public playtests are expected to resume soon as the team prepares for a full global launch. The China version, built for local rules, is in the works with support from state-backed platforms.