Mechanism Capital is a venture capital firm specializing in investments within the blockchain and decentralized finance (DeFi) sectors. Established in August 2020, the firm initially focused on DeFi but shifted its emphasis to blockchain-based gaming after successful investments in projects like Star Atlas, Ember Sword, and Yield Guild Games. In January 2022, Mechanism Capital launched "Mechanism Play," a $100 million fund dedicated to play-to-earn gaming, aiming to support games that players enjoy regardless of crypto incentives.

The firm also expanded its expertise by adding Steve Cho, formerly of Apple, as a partner to lead the fund's direction. Mechanism Capital's investment strategy centers on identifying and nurturing innovative startups that can disrupt traditional financial models through decentralized technologies.