Sugarverse, a Web3 gaming studio based in Sofia, has completed a $1 million funding round to support its work on blockchain-based games. The studio plans to use the money to develop titles with economies designed to reward players over time, starting with Sugar Match, a mobile game set to launch on the Tezos Layer-2 network Etherlink this summer. Data from Statista shows the global mobile gaming market reached $124 billion in 2024, with projections to hit $150 billion by 2027, signaling a growing space where Sugarverse aims to make its mark.
The funding arrives as Web3 gaming grapples with questions about longevity. A 2023 report from CoinGecko found that 70% of Web3 games launched since 2018 have either shut down or seen their token values drop below initial levels, often due to reward systems that favor early players and collapse under inflation. Sugarverse, with a history of 10 Web2 games and a combined player base of 60 million, claims its approach will differ by balancing rewards across all players, not just the first wave.
Can Web3 Gaming Economies Last?
Web3 games often rely on tokens or digital assets to incentivize play, but many struggle to maintain value. A study by DappRadar in 2024 noted that Play-to-Earn models, popularized in 2021, saw average token declines of 85% within two years as new players entered and reward pools diluted. Sugarverse says it has studied these failures and modeled its system after online poker, where a fixed pool of value circulates among participants rather than inflating unchecked.
Nikolay Mitev, Sugarverse’s co-founder and CEO, explained the studio’s focus: “Many games reward early adopters then leave latecomers with little. Our data from Web2 shows retention drops when rewards feel unfair.” The studio’s first Web3 title, Sugar Match, will test this by distributing its native token, CNDY, in a way that aims to keep the economy stable as the player base grows. Details on the exact mechanics remain limited, but the approach hinges on lessons from its past mobile titles.
Why Mobile Matters in Web3?
Mobile gaming accounts for 49% of global gaming revenue, according to Newzoo’s 2024 report, yet Web3 adoption on phones lags behind. Most blockchain games require wallets or technical setup, deterring casual players who dominate the mobile market. Sugarverse plans to bridge this gap with Sugar Match, offering a guest mode that lets users play without immediate Web3 integration, adding blockchain features as an option later.
Mitev said the goal is accessibility: “Players want fun first, not tutorials on crypto.” The studio’s Web2 experience—where titles like its puzzle games averaged 6 million downloads each—guides this strategy. By launching on Etherlink, which promises faster transactions and lower fees than many Layer-1 networks, Sugarverse hopes to reduce friction further, though it remains untested whether casual players will embrace the Web3 elements over time.
Does Blockchain Improve Gameplay?
Critics of Web3 gaming argue that blockchain often overshadows design, with mechanics built around earning rather than enjoyment. A 2024 survey by Game Developer found 62% of traditional developers believe Web3 prioritizes monetization over quality. Sugarverse counters this by emphasizing gameplay, using data from its Web2 titles to refine Sugar Match before layering on blockchain features.
Efe Kucuk, Head of Gaming at Trilitech, which supports Tezos development, sees potential: “Sugarverse brings mobile expertise to a space that needs it. Etherlink’s speed could help, but the real test is if players stay for the game, not just the rewards.” The studio’s $1 million will fund this balance, aiming to prove blockchain can enhance, not define, a game. Sugar Match’s summer launch will offer the first look at whether this works.
What’s Next for Sugarverse?
The funding supports more than just Sugar Match. Sugarverse plans a five-game series, each tied to the same CNDY token economy, creating a shared system where assets move between titles. This saga concept draws from Web2 trends like cross-game ecosystems seen in franchises like Candy Crush, which has sustained players across multiple releases since 2012.
Mitev hinted at broader ambitions: “This is step one. Our community on X is asking for more, and we’ll share updates soon.” With Etherlink’s backing and Tezos’ focus on scalable applications—its network processed 1.2 million transactions in February 2025 alone, per Tezos Explorer—Sugarverse has room to grow. Whether its model reshapes Web3 gaming depends on execution, but the funding signals confidence in its direction.
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