Dailly was the original designer of the the top-down game Race’n’Chase which started development in 1995. Rockstar later became involved in the project and renamed the game to Grand Theft Auto. Dailly has been releasing screenshots and details of his progress on his Twitter account. Recent images show he is working on a browser-based version of the game, using HTML5 and WebGL.
The purpose of the project may be to demonstrate 3D capabilities of the GameMaker Studio engine, however based on Dailly’s updates it seems to be more of a pet project than anything else.