This is a very nice tunnel effect that uses colours from the secret palette. It’s basically a plasma with the intensity of the colours boosted for the segments closer to the camera.
If you’re unfamiliar with plasmas, it’s an effect where you keep throwing different sin, cos, and similar functions on top of each other until you get a random-looking, but contiguous, output. See the plasmas page for some more info on this effect.
Most pico-8 games call cls() at the start of every frame, but this effect just leaves the existing screen alone and draws over the top of it. The pictures below shows which pixels are actually drawn every frame, and also how this looks when starting up. Doing this (instead of using cls() and redrawing everything) ensures that the screen will always be in a good-looking state, so there’s no need to call flip() at the end of each rendering loop. See the cls-vs-dithering page for some more info on this technique.
Pictures
The existing frame is updated each loop (rather than using cls() to start fresh).
When starting up it takes a short while to hit every pixel on the screen.
This shows how many pixels are actually drawn each loop. Note all the empty space in the middle of the lit-up areas.
Each line segment is drawn in a spiral, looping from the centre out
This is the effect but with less twisting in the plasma. The plasma creates the illusion of ridges and valleys, when the tunnel's totally smooth!