This excerpt is taken from The Drop newsletter. To access the full issues, consider subscribing. A new blockchain called Studio Chain, built on Arbitrum, is set to launch with a focus on exploring the possibilities of crypto in the entertainment industry. The Karrat Foundation collaborated with the Arbitrum Foundation for this project. The Karrat Foundation is responsible for the KARRAT token, utilized in AMGI Studios’ battle royale game My Pet Hooligan, which has reportedly achieved over 500, 000 downloads on the Epic Games Store during its early access phase. KARRAT will also serve as the native token for Studio Chain, and My Pet Hooligan is set to debut on this new platform. On a side note, a couple of years ago, I visited AMGI’s studio in California, where My Pet Hooligan is being developed in real life. The team demonstrated incredible enthusiasm not only for their video game and its unique rabbit-themed intellectual property but also for their ambitions in animated film production, especially given their proximity to Hollywood. Studio Chain aligns with that vision. Arbitrum Orbit is a technological framework that allows others to create their own chains, all interconnected to form “a universe of chains. ” In contrast, Arbitrum One represents the primary Arbitrum chain, an EVM-compatible Layer 2 solution on Ethereum that employs optimistic rollups to minimize network costs. Consequently, Studio Chain will function as an individual chain within Arbitrum's interconnected ecosystem. “By harnessing Arbitrum's robust infrastructure, we can craft gaming experiences that were once thought unattainable, ” stated Luke Paglia, COO and co-founder of AMGI Studios.

“My Pet Hooligan is merely the beginning—this partnership facilitates seamless in-game asset ownership, genuine player-driven interactive extensions, and improved interoperability that will revolutionize audience engagement with entertainment. ” An unnamed representative from the Karrat Foundation hinted in the statement that Studio Chain may transform the creation and distribution of entertainment IP. While this vision is undoubtedly ambitious, the specifics of their plans remain unclear at this point. Studio Chain will have to face competition from numerous existing gaming chains, such as Ronin, Sui, Immutable, and Abstract, as well as those that exist solely to support individual games. For example, Gunzilla Games' Off The Grid is an ambitious title supported by its own chain, Gunz, which operates on Avalanche and recorded 4. 9 million monthly active wallets as of January 2025. Additionally, MapleStory's forthcoming crypto adaptation is also aiming to launch its own Avalanche chain. Gala has been vocal about its vision for a crypto-powered film industry for years, yet we have yet to see that initiative gain traction (Gala introduced a FILM token last year, which has since declined 93% from its all-time peak). At this point, there has yet to be a significant breakthrough in blockchain film or television projects or platforms that capitalize on blockchain technology to reach mainstream audiences. Recently, however, niche projects have gained attention, such as The Normal Mfer, an animated short that heavily draws on meme culture, crypto themes, and the Mfers NFT collection. Overall, it appears we're still navigating an era in crypto where numerous projects aim to launch their own chains. Data from crypto gaming platform Game7 indicates that 104 gaming-related networks were announced last year. Establishing a dedicated chain may provide studios with greater control and autonomy, but it is uncertain if all these chains will maintain their relevance in the long term. Ultimately, the sustainability of these ventures likely hinges on whether they can attract a sufficient number of consistent players—and revenue—to remain operational. Stay updated—subscribe to receive news directly in your inbox. Explore Blockworks newsletters: