They have been saying "close to done" for years. At this pace, if they are doing anything at all, they are typing the code at 1 character per day or 1 new pixel to the artwork per week. We will have Half Life 3 before this finishes!
Hey there, current PawPunch Dev here. A long time ago it was indeed abandoned, but a completely newly built version is in the works! Check out the updated page description for details.
