Overview

Pudgy Penguins is the most beloved and resilient brand in NFTs and digital collectibles. For over a year, we have been developing Pudgy Party, an immersive Web3 Game, in a partnership with Mythical Games, a leading gaming studio on Polkadot. As we are getting close to the game launch, as part of our go-to-market strategy, we would like to tie the iconic Pudgy Penguins directly to the Polkadot ecosystem. Pudgy Party is therefore not just another game; it's Polkadot's gateway to mainstream adoption, transforming it from an infrastructure powerhouse into a leading consumer-facing brand in Web3, that millions of people will interact with daily.

About the proposer: This proposal is brought to the Polkadot Treasury by Luca Netz, the CEO of Igloo Inc., the company that owns the Pudgy Penguins brand. Luca will be speaking about it on AAG this week – make sure to tune in. 

Background of Pudgy Penguins

Pudgy Penguins originated in July 2021 as an Ethereum-based NFT collection of 8,888 uniquely designed, chubby penguin avatars, launched by four college students amid the NFT boom. Initially facing challenges, including community distrust and market volatility, the project was revitalized in 2022 when entrepreneur Luca Netz acquired it for $2.5 million and turned it into a global consumer brand. Under Netz's leadership, Pudgy Penguins expanded beyond digital assets into physical merchandise, including plush toys sold in major retailers like Walmart, Target, and Amazon, generating millions in revenue and establishing it as a pop culture icon. The brand now boasts over 8 million social media followers, a dedicated community-driven ecosystem, and innovative initiatives like the $PENGU token, Pudgy Learn (an educational platform for Web3 concepts through gamified experiences), and the PudgyPals mobile app that bridges physical toys with digital interactions. Achievements include partnerships with major brands, a path to billion-dollar valuation potential, and a remarkable turnaround story that has made it one of the most loyal and viral communities in Web3, often compared to mainstream sensations like Pokémon or Hello Kitty for its cross-generational appeal.

Mythical Games

Mythical Games, founded in 2018 by industry veterans including CEO John Linden, is a venture-backed pioneer at the intersection of video games and blockchain economics. Besides Pudgy Party – the focus of this proposal – Mythical has developed blockbuster Web3 titles such as NFL Rivals (which surpassed 5 million users), FIFA Rivals (achieving 1 million downloads in record time upon its 2025 release), and Blankos Block Party. These successes demonstrate Mythical's expertise in creating engaging, mainstream-appealing games that seamlessly integrate blockchain for true digital ownership, player economies, and rewards. The studio's track record includes multiple games hitting million-download milestones, strategic licensing deals with global IPs like the NFL and FIFA, and a focus on accessible Web3 mechanics that attract both crypto natives and traditional gamers.

Details of the Partnership

The budget requested as part of this proposal, is entirely for go-to-market of Pudgy Party on Polkadot, not for the development of the game, which is already funded from other sources (see budget breakdown below). 

We believe this strategic partnership represents a tremendous opportunity for Polkadot. Mythical's Mythos Chain, which migrated to Polkadot as a parachain in 2024, has brought over 5 million users into the ecosystem while leveraging Polkadot's flexible EVM compatibility and robust security to handle high-throughput gaming applications. Pudgy Party, which will be built entirely on Mythos Chain and powered by $MYTH tokens secured by Polkadot, will combine the community loyalty of Pudgy Penguins with Mythical's game development prowess and Polkadot’s security architecture. Imagine for example, the addictive, multiplayer fun of Fall Guys—complete with customizable Pudgy avatars, chaotic party modes, and real-time competitions—infused with Web3 elements like NFT ownership, token rewards, and in-game asset trading on-chain. Launching on iOS and Android in September 2025, this AAA mobile party game is poised to onboard millions of new users to Polkadot, driving ecosystem growth through increased transaction volume, wallet adoption, and $DOT utility.

By funding this collaboration, Polkadot isn't just supporting a game; it's catalyzing a shift where its advanced technology becomes synonymous with fun, accessible Web3 experiences. Past partnerships, like Mythos Chain's integration bringing 5 million users to Polkadot, have already demonstrated massive returns in user base expansion and network activity. This alliance will deliver similar exponential growth, positioning $DOT as the go-to Layer 1 for consumer-facing applications and yielding long-term value through heightened adoption, token demand, and global visibility.

Funding Request

Amount: 2,000,000 USDC

Use: 100% allocated to marketing, user acquisition, and tournament prize pools to maximize ecosystem growth and onboard millions into Polkadot. 

This grant is not for development—Pudgy Penguins and Mythical Games have already committed over $10 million to build the game. Instead, it fuels a high-impact go-to-market strategy designed to create viral momentum, drive user retention, and integrate Polkadot branding deeply into the experience. Here's a detailed breakdown of the budget allocation, emphasizing how each component grows the Polkadot ecosystem:

• 200,000 USDC for Paid Media and Online Campaigns (10% of total): Targeted ads across platforms like Google, Meta, TikTok, and YouTube, focusing on Web2 gamers and crypto enthusiasts. This will generate 20M+ impressions, introducing Polkadot as the secure backbone of Web3 gaming. Ecosystem impact: Direct onboarding of 500,000+ new users via in-app Polkadot wallet integrations, boosting $DOT transactions and network fees.
• 400,000 USDC for Influencer and Content Creator Partnerships (20% of total): Collaborations with 100+ influencers (e.g., gaming YouTubers with 1M+ subscribers and Web3 creators) to produce UGC, tutorials, and live streams. Includes custom Polkadot-branded content highlighting $DOT rewards. Ecosystem impact: Leverages Pudgy's 8M+ followers for organic virality, aiming for 1M+ new Mythos wallets (secured by Polkadot), with cross-promotions educating users on Polkadot's multichain advantages.
• 300,000 USDC for Offline Events and Activations (15% of total): Sponsorships at major events like Comic-Con 2025 (200,000+ attendees), gaming conventions, and pop-up experiences where attendees can play demos and receive $DOT airdrops. Ecosystem impact: Real-world exposure converts Web2 audiences to Polkadot users, targeting 100,000+ on-site registrations and fostering community events that increase $DOT staking and governance participation.
• 500,000 USDC for User Acquisition Incentives (25% of total): Onboarding bonuses, referral programs, and "Polkadot Starter Packs" for $DOT and Pudgy holders, including free in-game items and token rewards. Ecosystem impact: Accelerates wallet creation to 5M+ total Mythos users, with seamless $DOT integration driving daily active users and long-term retention through gamified rewards.
• 600,000 USDC for Tournaments and Prize Pools (30% of total): Funding for global tournaments with $DOT, $MYTH, and $PENGU prizes, including Polkadot-branded leaderboards and events. Ecosystem impact: Engages competitive players, generating 10M+ in-game transactions on Polkadot, while prize distributions incentivize $DOT holding and trading, enhancing token liquidity and value.

Timing: Funds will be deployed starting Q3 2025, ramping up pre-launch in August for a September global rollout. Milestones include Polkadot-targeted campaigns, co-branded events, and embedded $DOT branding in all assets to ensure maximum visibility and ROI.

Capital Already Committed

Mythical Games: 

• $5,000,000+ in development (core engine, blockchain integration, and gameplay mechanics). 
• $2,000,000+ in initial marketing and user acquisition. 
• $1,000,000 in $MYTH token rewards for early tournaments and prizing over the first two years.

Pudgy Penguins: 

• $2,000,000+ in marketing and user acquisition (leveraging brand IP and community channels). Paid marketing, giveaways, IRL Events like Comic Con and others.
  (Comic Con photos: Link Here)
• $2,000,000 in $PENGU token rewards for tournaments and prizing over the first two years.

Total Committed: $12,000,000+ from partners, underscoring their skin in the game and reducing risk for Polkadot while amplifying the grant's impact.

Why Polkadot Wins

Investing 2,000,000 USDC positions Polkadot to reap outsized returns through ecosystem expansion, user growth, and enhanced token utility. Here's why this partnership delivers exceptional value:

1. Massive Ecosystem Exposure and User Onboarding: Built on Mythos Chain (a Polkadot parachain since 2024), Pudgy Party secures all accounts, NFTs, and transactions via Polkadot, introducing millions to its tech. Mythos's prior migration brought 5M+ users; this game could double that, driving $DOT demand through in-game utilities and cross-chain features.
2. Strategic Wallet and Token Integration: Targeting 5M+ new Mythos wallets, with "Polkadot Starter Packs" offering $DOT rewards to holders. Tournaments funded by $DOT create real utility, increasing staking, governance votes, and network activity—translating to higher token value and fees.
3. Real-World and Digital Visibility: Premiering at Comic-Con 2025 with playable demos, plus co-branded events. $DOT branding in marketing assets reaches 50M+ impressions, elevating Polkadot from infrastructure to cultural staple, similar to how Mythos's NFL Rivals boosted its chain's adoption.
4. Proven ROI from Similar Partnerships: Mythical's games like FIFA Rivals hit 1M downloads rapidly, while Pudgy's brand has generated millions in merchandise sales. This combo on Polkadot could yield 10x returns in user growth, with metrics like transaction volume surging as seen in Mythos's 5M+ user influx.
5. Long-Term Strategic Fit: Polkadot's scalability handles millions of players without congestion, while Pudgy and Mythical's mass appeal bridges Web2 to Web3. This positions $DOT as the "consumer Layer 1," fostering developer interest and ecosystem projects for sustained growth.
6. Polkadot Branding: Polkadot's branding will be displayed prominently in the app. We want to ensure that consumers begin to get familiar with the Polkadot brand as an important infrastructure provider.

Success Metrics

• User Growth: 5M+ new wallets; 1M+ daily active users within six months. 
• Engagement: 50M+ campaign impressions; 10M+ in-game transactions. 
• Economic Impact: $5M+ in $DOT/$MYTH rewards distributed; measurable increase in $DOT holders via analytics. 
• Transparency: Quarterly reports on wallet growth, spend and ROI.

Governance + Transparency

• Gamified Governance: $DOT and $MYTH holders vote on in-game content, events, and updates via Polkadot's decentralized tools. 
• Reporting: Quarterly dashboards on engagement, grant usage, and beneficiaries. 
• Multi-Sig Wallet: 15bMnoyrmD876Ud6on2dumVBY5bEwAA6HKVmFCNGLtzWYsUx (2-of-3 threshold: Two signers from Mythical, one from Pudgy).

Summary

Pudgy Party is set to redefine Web3 Pop Culture – addictive, accessible and culturally resonant – co-created by Pudgy Penguins and Mythical Games on Polkadot. This isn't simply a new game on Polkadot; it's Polkadot's opportunity to lead mainstream mobile gaming, onboarding millions while leveraging its superior tech for security and scalability. By approving this go-to-market grant, DOT holders will secure a first-mover advantage for Polkadot in consumer-facing Web3, driving exponential returns through new user influx, token utility, and visibility. Let the cute penguins – the most beloved consumer brand in Web3 – become a new face of Polkadot.