Pirate Nation Closure Marks a Setback for Crypto Gaming

Pirate Nation Shuts Down Its On-Chain Game

Ethereum role-playing game Pirate Nation is closing its fully on-chain operations. The studio behind the game, Proof of Play, decided to shift focus and move parts of the game into smaller modules on an arcade app hosted on the Abstract network.

The closure marks the end of a bold experiment in blockchain gaming. Pirate Nation was one of the few projects that tried to run completely on smart contracts, offering permanence and community ownership. But the player base wasn’t strong enough to sustain the costs.

Proof of Play released a statement on X explaining that Pirate Nation simply did not attract enough players. Without strong user interest, the project was not financially viable.

Adam Fern, co-founder and product lead, admitted that the decision was extremely difficult. He shared that he worked nearly every day for more than three years on the project, but he recognized that Pirate Nation was never going to achieve mainstream success.

Proof of Play Continues With a New Direction

Although Pirate Nation is shutting down, Proof of Play is not leaving the space. The studio will continue building infrastructure and expanding its ecosystem.

As part of a final two-week event, players will be able to burn in-game items to receive Plunder Certificates. These certificates will unlock rewards in the future and connect Pirate Nation’s legacy to the upcoming arcade platform.

Pirate Nation was built to run entirely on-chain. Every interaction depended on smart contracts. This structure was innovative, but it carried heavy costs.

At first, the studio had to cover players’ gas fees on Polygon, paying as much as $4,000 a day. Later, they migrated the game to Arbitrum, running two separate chains to handle the load. Proof of Play CEO Amitt Mahajan once envisioned thousands of blockchains supporting individual apps. In reality, operating multiple chains was too expensive for the size of Pirate Nation’s community.

Source: X

The Switch to Abstract Arcade

Proof of Play concluded that running Pirate Nation in its original form was no longer sustainable. Instead, the most engaging parts of the game will be moved into the Proof of Play Arcade on Abstract.

The arcade requires players to purchase credits. So far, fewer than 10,000 buyers have taken part, according to Dune data. While smaller than expected, this model gives Proof of Play flexibility. Different game features can be ported into the arcade over time, and possibly onto other blockchains as well.

Some Pirate Nation players have voiced frustration. Many believed the game was meant to be permanent. Proof of Play had raised $33 million in 2023, with Mahajan openly sharing his vision of “forever games.”

This promise was rooted in his past experience at Zynga, where FarmVille was eventually shut down. He wanted to use blockchain to ensure that games would not be taken away. Pirate Nation’s closure, however, highlights the challenge of achieving that vision. Despite being built on-chain, the game still relied on Proof of Play to function.

Source: X

Pirate Nation is not the only project to fold. Other titles like Deadrop, Ember Sword, Nyan Heroes, and The Walking Dead: Empires have also gone offline this year. Many of these projects launched with hype, raised significant funds, and promised token-based rewards, yet still collapsed.

The reasons are often the same: lack of funds and declining player bases. Gaming tokens have also lost significant value over the past year. None remain in the top 100 cryptocurrencies by market cap, according to CoinGecko. The overall sentiment around crypto gaming has grown pessimistic.

Despite the setbacks, some believe the current downturn could pave the way for new creativity. Content creator Luke Franks noted that Web3 gaming is at a low point, but this is often when fresh experiments begin.

Indie teams are emerging with smaller budgets, building quirky and creative projects. AI-driven mechanics are also opening new possibilities that traditional gaming has never seen before.

The road back for crypto gaming may be long, but innovation often comes from tough times. Pirate Nation’s closure may mark the end of one chapter, but it also shows the lessons the industry is learning as it evolves.