In Brief:
- Moonveil, a web3 gaming studio, will wind down operations over the coming weeks due to challenging market conditions.
- Founded in 2022, the studio is known for titles like AstrArk and Bushwhack.
- This closure highlights broader struggles within the GameFi sector and gaming industry.
Moonveil confirms project wind-down
Moonveil has announced it will wind down operations and discontinue project activity gradually over the next few weeks. The studio cited ongoing difficulties in the GameFi sector and the broader gaming industry as primary reasons for this decision. Despite efforts in fundraising and partnership discussions, it could not find a sustainable pathway forward under current market conditions.
The announcement marks the end of a four-year journey for the studio, which launched in 2022 with a focus on building a diverse game portfolio. The team expressed gratitude to players, creators, partners, and community members, calling the decision to close “deeply painful.”
Market conditions cited as decisive factor
The team attributed the closure to significant changes in the industry over the past two years. Market interest and capital have shifted away from gaming, creating a much tougher landscape for startup studios. Moonveil noted these external conditions outweighed any internal challenges.
Though the team made continuous efforts to keep the project viable, they observed a steady decline in the overall environment, which ultimately led to the decision to shut down.
What the wind-down looks like in practice
Moonveil’s operations, community activities, and services will gradually come to an end. The studio indicated its website and social channels could also be discontinued during this process. While project inquiries will be accepted through an official contact channel, the team warned that response times may be limited.
No final date for full closure has been provided, framing the process as a gradual decommissioning. This phased approach allows stakeholders time to manage their positions, although specific arrangements for $MORE token holders or node operators were not detailed.
Inside Moonveil: From AstrArk to Bushwhack
Moonveil made its mark with the flagship title AstrArk, a tower defense game that gained over 2 million unique active wallets and hosted more than 48,000 PvP battles after its open beta launch in February 2025. The studio’s second major project, Bushwhack, was a stealth-based battle royale that ran an Initial Playtest in October 2025.
Additionally, Moonveil created a Mini Games Hub and a third-party publishing initiative named Moonveil Punch to boost developer participation within the ecosystem.
A ZK-powered Layer 2 and the $MORE token era
On the infrastructure side, Moonveil operated a Layer 2 chain built using Polygon CDK. This layer aimed to unify gaming identities and facilitate player reward systems across various games. The node sale, which distributed 31,000 nodes, was an effort to decentralize infrastructure.
Funding rounds raised $5.4 million in 2023, followed by a $9 million Pre-Series A, along with a subsequent $5 million investment to expand the ecosystem and the $MORE token, which launched on platforms like KuCoin and Bitget.
The wider picture for web3 gaming
Moonveil’s closure is indicative of broader trends in on-chain gaming, where capital inflow has diminished since 2021 and 2022. Many studios struggle to secure follow-on funding or sustainable revenue, leading to a series of shutdowns and pivots across the sector. However, some teams continue to thrive, especially those connected to strong NFT communities or solid partnerships.
For Moonveil’s team, the announcement framed the shutdown as an unexpected but definitive outcome. The founders expressed pride in their accomplishments and the relationships forged over four years. As the wind-down begins, all the studio’s contributions—from games like AstrArk to the $MORE token framework—will serve as a record of its efforts in a rapidly shifting industry.
