Animoca Brands Partners AMGI Studios to Advance My Pet Hooligan and KARRAT Ecosystem

Executive Summary

Animoca Brands has formalized a partnership with AMGI Studios, developers of the Web3 game My Pet Hooligan (MPH). This collaboration aims to bolster the KARRAT token ecosystem and the Arbitrum Orbit Layer 2 solution, Studio Chain. The initiative, announced August 5, 2025, includes Animoca Brands acquiring KARRAT tokens from the open market, signaling a strategic investment in the blockchain gaming sector and its underlying infrastructure. Market sentiment is observed as uncertain to bullish for the GameFi sector, anticipating potential new standards for Web3 and AI integration in gaming.

The Event in Detail

The partnership between Animoca Brands and AMGI Studios centers on the growth and development of My Pet Hooligan and its associated technological framework. My Pet Hooligan is described as a multiplayer shooter integrating Web3 features such as KARRAT tokens, NFTs, and an on-chain marketplace, augmented by AI companions. The game, set in Hooliland City, pits players against Metazuckbot (MZB), the antagonist from Zuck Corp. Currently in early access, MPH has recorded over 500,000 downloads on the Epic Games Store.

Supporting this ecosystem is Studio Chain, a new Layer 2 network built using Arbitrum Orbit and Caldera technology. This blockchain, currently in its testnet phase, is engineered for high-speed, low-cost transactions, targeting crypto games, AI agents, and digital content. Studio Chain boasts a stated capacity of 10,000+ Transactions Per Second (TPS), a block time of approximately 2 seconds, and is EVM compatible with a Proof-of-Authority (PoA) consensus mechanism. The KARRAT token serves as its native gas token.

Future plans for My Pet Hooligan, outlined in its 2025 roadmap, include trials for an AI chat buddy and a "Street Kred" system, alongside the integration of ZuckBots, Ethereum-based NFTs functioning as in-game companions. The game is slated to transition from a free-to-play model to a pay-to-play system in March 2025, with an early access price of $9.99, increasing to $19.99 at launch.

Financial Mechanics and Business Strategy

Animoca Brands' involvement includes advising AMGI Studios on market entry for My Pet Hooligan, assisting with tokenomics design, and providing liquidity for the KARRAT token. A key financial component of the deal is Animoca Brands' acquisition of KARRAT tokens from the open market. This direct investment signifies a strategic move to bolster the token's ecosystem and value proposition.

The KARRAT token itself is an ERC20 utility and governance token designed to power gaming and entertainment ecosystems. It facilitates an on-chain marketplace for exclusive in-game assets and implements a "Burn-Bolster" mechanism. This mechanism involves redirecting a portion of proceeds from initial sales or minting of on-chain assets: one part is effectively burned, permanently removing tokens from circulation, while another portion replenishes the KARRATco Treasury to ensure the sustainable operation of the decentralized autonomous organization (DAO). This dual approach aims to enhance token scarcity and provide long-term sustainability.

AMGI Studios' broader strategy extends beyond game development, aiming to establish Studio Chain as a platform for other creators and studios to launch their own on-chain projects, facilitating digital ownership and creator economies. This positions AMGI Studios not just as a game developer, but as an infrastructure provider within the Web3 space.

Market Implications

The collaboration holds several implications for the Web3 gaming market. In the short term, the partnership and associated marketing efforts are expected to attract a greater number of Web3-native players to My Pet Hooligan. Furthermore, the deployment of Studio Chain underscores the growing potential and utility of dedicated Layer 2 solutions like Arbitrum Orbit for scaling specialized gaming applications.

Long-term, AMGI Studios' integrated approach, combining Web3 elements with AI companions, could establish a new benchmark for innovation in the GameFi sector. If successful, this model may influence other development studios and drive broader adoption of blockchain-based gaming experiences and dedicated gaming chains. Yat Siu, co-founder and executive chairman of Animoca Brands, estimates that blockchain gaming users could reach up to 100 million, viewing Web3 gaming as a significant driver for on-chain activity and mass adoption. This sentiment suggests a potential bullish trend for innovative blockchain gaming models and infrastructure, impacting investor confidence and directing capital flows within the digital asset market.

Broader Context: Web3 and AI in Gaming

The partnership reflects a broader industry trend towards deeper integration of Web3 and Artificial Intelligence (AI) within the entertainment sector. My Pet Hooligan's incorporation of AI companions aims to create personalized, interactive player experiences and unlock new monetization avenues. The future integration of AI-driven NFT collections such as ZuckBots further exemplifies this trend.

The development of custom Layer 2 blockchains like Studio Chain using frameworks such as Arbitrum Orbit highlights the evolving infrastructure necessary to support scalable Web3 applications. These specialized chains are critical for managing the high transaction volumes and low latency requirements inherent to modern gaming. The strategic shift for My Pet Hooligan from a free-to-play to a pay-to-play model in 2025 also indicates an evolving approach to user acquisition and monetization within the Web3 gaming landscape, balancing accessibility with sustainable revenue generation.