The YouTube star declared the game CryptoZoo in 2021 however it never emerged, notwithstanding fans burning through millions on game tokens.
Paul, 28, has now said he will repurchase the tokens, relying on the prerequisite that fans who acknowledge don't sue him.
It is far-fetched that fans will get all of their cash back.
CryptoZoo was intended to be a game where players purchased, sold and reared virtual creatures utilizing cryptographic money.
At that point, Paul urged individuals to purchase digital currency collectables for what he called a "truly fun game that makes you cash".
In any case, in the wake of selling a huge number of dollars worth of NFTs and crypto coins, he quit discussing CryptoZoo and apparently deserted the task.
After another YouTuber, Coffeezilla, delivered a progression of recordings showing his examination concerning the undertaking in December 2022, Paul apologized, saying he needed to "make this right".
A year on, he has now declared the beginning of the repurchase cycle, which he says will cost him $2.3m (£1.8m).
He will discount players 0.1 Ether, which is a cryptographic money, per NFT that was purchased.
The NFTs were initially sold in September 2021 for 0.1 Ether.
Notwithstanding, its money related esteem has dropped by 37% since the send off of CryptoZoo NFTs, and that implies fans will in any case miss out monetarily.
In a post on X, previously Twitter, Paul said: "This repurchase is a way for me to make entire the people who planned to play CryptoZoo.
"The repurchase isn't planned to repay the individuals who bet on the crypto market and lost."
He added that it was "not planned as a speculation vehicle".
Individuals have until 8 February 2024 to acknowledge the discount, and should do as such relying on the prerequisite that they make no legitimate cases against Paul and others associated with CryptoZoo.
One financial backer who burned through $40,000 on NFTs told the BBC last year that he was not keen on a discount and believed Paul should finish the task to ensure the much-advertised game and NFTs realized their much-advertised potential.
"I don't figure it will at any point be pretty much as large as it might have been nevertheless I believe it's vital that 'originators' do what they guarantee financial backers," the 35-year-old said.
Paul recently advanced cryptographic money coin Dink Doink in June 2021, which crashed in esteem and is currently useless.
He later told the New York Times that he lamented advancing the coin without unveiling the way that he had made it and had a monetary stake in the digital money.
"I most certainly didn't go about as dependably as I ought to have," he said.
The CryptoZoo case "features the dangers related with putting resources into a generally new and unregulated market", says legal counselor Syedur Rahman, accomplice at firm Rahman Ravelli who works in crypto extortion related cases.
While Mr Rahman doesn't think the high-profile cases will hugely affect the standing of digital currency in general, he says that it advances "conversations about the need of extra guidelines".
The degree of guideline contrasts from one country to another, however Mr Rahman says shoppers "may well have freedoms in NFT buys or things of that nature".
Whether they wish to go through case to get back their underlying spend really relies on the amount they put in any case, he says - as the expense and burden of going through the courts might offset the sum they get back.
