Japan’s anime industry has transformed from a niche subculture embraced by “otaku” and “weeb” communities into a dominant force in global entertainment. While anime remained a specialized market for much of the 20th century, industry shifts in the 1990s, such as the production committee system and media mix strategy, set the stage for growth. The 2010s saw a turning point as OTT streaming platforms propelled anime into mainstream global markets
The industry remains reliant on the production committee model. While this structure has enabled large-scale financing and risk-sharing, reliance on the production committee model has led to diminishing studio profits, creative constraints, poor animator conditions, and a widening disconnect between creators and fans. The system prioritizes corporate interests over artistic innovation, posing long-term sustainability challenges.
Web3 offers a decentralized alternative. By leveraging blockchain-powered token economies, the industry can diversify funding mechanisms, introduce liquidity into fandom, enable data-driven secondary markets, redistribute ownership, and unlock new monetization opportunities for derivative works, addressing key limitations of the traditional anime industry.
A leading example of this vision in action is Animecoin. Developed in collaboration with Arbitrum and the Animecoin Foundation, Animecoin is building a decentralized anime ecosystem that redefines how anime is created, monetized, and owned. Azuki, as an early contributor to Animechain, has played a key role in shaping the Anime 2.0 vision.
Opportunities arise where least expected. History shows that innovation often emerges at the intersection of disparate fields. The convergence of anime and cryptocurrency represents exactly such a junction.
Japanese animation, known globally as anime, has only recently claimed its place on the world stage. As recently as 2012, international sales accounted for a mere 17% of Japan's anime revenue. The landscape transformed during the mid-2010s with the proliferation of global streaming platforms and improved accessibility through YouTube. Today, anime stands as a pillar of mainstream global entertainment - a remarkable transformation accomplished in just a decade.
Source: Anime Expo 2024
Yet beneath this market expansion lies an infrastructure struggling to keep pace. The industry remains constrained by an insular production committee system and operational frameworks largely unresponsive to its global audience.
Cryptocurrency offers a potential solution. At its core, blockchain technology creates transparent networks with incentive systems that encourage worldwide participation. By integrating Web3 concepts - digital ownership, decentralized governance, and direct-to-fan token funding models - the anime industry could mobilize global fans, capital, and talent to expand its horizons. While not essential to anime's future, cryptocurrency could definitely serve as a powerful catalyst for growth.
Understanding these possibilities requires knowledge of Japanese anime's history, structure, and challenges. This report examines the industry's trajectory, analyzes current market limitations, and explores how cryptocurrency might address longstanding issues while creating new synergies with animation.
The Japanese animation market has experienced remarkable growth over the past decade. The industry’s total revenue expanded from $10.75 billion in 2014 to $22.43 billion in 2023, marking its highest level to date. This growth has been driven primarily by overseas exports, which saw a staggering 613% increase from 2012 to 2023. By 2023, overseas exports reached $11.56 billion, accounting for more than 50% of the total market.
Among Japan’s nine entertainment sectors, including performing arts, film, music, publishing, and manga, animation stands out as the only industry that has continuously expanded since 2014. Today, it represents over 30% of Japan’s total content exports, with major international markets including North America, China, Taiwan, and South Korea.
This explosive growth was fueled by a string of global box office hits. In 2022, theatrical releases such as Dragon Ball Super: Super Hero, Jujutsu Kaisen 0, and One Piece Film: Red dominated international markets. The momentum continued in 2023, with The Boy and the Heron, The First Slam Dunk, and Detective Conan: Black Iron Submarine achieving major success. Meanwhile, serialized titles such as Spy x Family, Demon Slayer, and Chainsaw Man garnered massive global viewership, further cementing anime’s mainstream appeal.
Looking ahead, 2024 is poised to be another record-breaking year. Theatrical releases like Haikyuu!! Battle at the Garbage Dump and Detective Conan: The Million-Dollar Pentagram have already posted strong performances, while ongoing hit series such as Frieren: Beyond Journey’s End, Jujutsu Kaisen, and Demon Slayer are set to expand their reach. The continued rise of on-demand streaming platforms is further accelerating the industry’s expansion, unlocking new audiences worldwide.
The global rise of Japanese anime was neither immediate nor inevitable. While anime has long been embedded in Japan’s cultural fabric, where over 60 million middle-aged and older consumers actively engage with manga and anime, it remained a niche subculture in most other regions for decades. In many parts of the world, anime was relegated to the domain of ‘otakus’ and ‘weebs’, far from the mainstream spotlight.
The journey to global recognition spanned nearly a century, marked by distinct phases of evolution. Each phase was shaped by social shifts, technological advancements, and industry restructuring, collectively paving the way for anime’s current status as a major force in global entertainment.
2.2.1 Formative Years (1910s–1950s)
The origins of Japanese animation trace back to 1917, with early works by pioneers such as Ōten Shimokawa, Jun’ichi Kōuchi, and Seitaro Kitayama. These early productions were largely experimental, serving educational or propaganda purposes rather than commercial entertainment. The 1930s saw the introduction of cel animation by Kenzo Masaoka, bringing a new level of sophistication to the medium. After World War II, Japan’s animation industry rapidly absorbed Western influences, setting the stage for its postwar development.
2.2.2 Dawn of TV Anime (1960s–1980s)
The industry’s first major turning point came in 1963 with the broadcast of Osamu Tezuka’s Astro Boy, which launched the era of serialized television anime. This period established the foundation for anime’s commercial model, where television networks played a central role in production funding, relying on advertising revenue from corporate sponsors. While studios initially earned income primarily from broadcast licensing fees, they soon discovered the long-term value of retaining intellectual property rights, leading to the commercialization of anime through merchandising and international licensing.
The late 1970s solidified anime’s commercial viability, with iconic mecha franchises like Mazinger Z (1972) and Mobile Suit Gundam (1979) proving the potential of a multimedia business model. These series demonstrated that anime could extend beyond television, generating revenue through toys, model kits, and home video releases.
2.2.3 OVAs and Expansion of the Home Video Market (1980s–1995)
The 1980s marked a turning point for Japanese anime, driven by visionary creators like Hayao Miyazaki and Katsuhiro Otomo. This era saw the launch of the Hiroshima International Animation Festival (1985) and cemented Japan’s status as Asia’s leading cultural exporter. While Hong Kong’s noir films had fleeting success, Japan’s anime left a lasting global impact.
A major shift occurred in the mid-1980s with the rise of Original Video Animation (OVA). Unlike TV anime, which relied on broadcasters and advertisers, OVAs allowed studios to bypass TV constraints and sell directly to consumers via home video. This model enabled greater creative freedom and encouraged risk-taking, leading to a surge of high-budget and experimental works. Recognizing its potential, advertisers and studios expanded anime monetization through merchandising and global distribution.
This period produced anime’s most iconic works. TV classics like Touch, Dragon Ball, and Anpanman captivated domestic audiences, while OVAs like Laputa: Castle in the Sky, My Neighbor Totoro, Area 88, and Akira pushed the artistic and narrative boundaries of the medium. These titles not only fueled Japan’s domestic anime boom but also laid the foundation for its global reach.
Source: Screen Rant
2.2.4 The Rise of the Production Committee Model (1995–2005)
The economic downturn of the early 1990s forced structural changes within the anime industry. The speculative bubble that had once fueled lavish productions burst, leading to financial strain on studios. To mitigate risks, a new financing model emerged: the Production Committee System.
This system involved multiple investors, typically a mix of publishers, broadcasters, toy companies, and film distributors, who collectively funded a project in exchange for shared IP rights. This approach minimized financial exposure for any single entity while ensuring broader commercial opportunities across different media platforms. While the system was instrumental in stabilizing the industry, it also introduced creative constraints, often prioritizing commercial viability over artistic risk-taking.
Flagship successes such as Pokémon and Neon Genesis Evangelion demonstrated the power of this model. However, as later sections will explore, the production committee system also created inefficiencies and structural challenges that continue to impact the industry today.
At the same time, Japan’s anime industry faced new pressures. Traditional revenue streams, such as TV syndication and home video sales, began to wane. In response, the industry doubled down on media mix strategies - integrating anime with manga, video games, and live events to maximize profitability.
2.2.5 The Media Mix Era (2005–Present)
By the mid-2000s, the media mix strategy had become the dominant industry model. Instead of treating anime as a standalone product, studios began developing franchises that extended across multiple entertainment formats. A prime example is the Gundam series, which leveraged animation to build a vast fictional universe while monetizing through plastic model kits, video games, and live-action adaptations.
Government support also played a role in anime’s globalization. In 2012, Japan introduced the Cool Japan Initiative, a state-backed program aimed at promoting cultural exports. This included funding from Japan’s Ministry of Economy, Trade, and Industry (METI), expanded international licensing through JETRO, and strategic partnerships with global streaming platforms.
The emergence of streaming platforms marked a turning point for anime’s global expansion. Since the early 2010s, platforms such as Netflix, Amazon Prime, Disney+, and Apple TV have revolutionized anime distribution, making content more accessible to international audiences than ever before.
As a result, Japan’s anime industry saw its revenue from OTT platforms skyrocket from $2.3 billion in 2013 to $11.2 billion in 2022, reflecting a staggering 385% growth in just a decade. Industry players have taken notice. North American anime distributor GKIDS observed that "streaming popularity has translated to big-screen success,” while Toei Animation noted that "consumers who discovered animation through streaming during the pandemic became a key driver of theatrical audience growth."
Data from entertainment analytics firm Parrot Analytics further quantifies this shift (see image below). Anime’s share of global OTT content consumption rose from 7% in 2018 to 13% in 2023, making it the fastest-growing genre. This surge in demand has led to aggressive investment by streaming platforms. Netflix’s original anime budget expanded from $1.1 billion in 2018 to $5 billion in 2022, while Amazon Prime increased its anime investments more than sixfold, from $300 million to $1.9 billion over the same period.
Naturally, this aggressive spending is backed by surging viewership. Netflix’s 2023 H2 viewership data revealed that total anime watch hours reached 3.5 billion hours. In the U.S. market, Hulu allocates 9.0% of its total catalog to anime, yet anime accounts for 11.8% of total audience demand - indicating that consumer appetite for anime outpaces its catalog representation. Similarly, Netflix’s anime library comprises only 3.9% of its total content but commands 6.8% of total viewer demand, highlighting anime’s disproportionate impact on platform engagement.
Unsurprisingly, the surge in anime demand has prompted swift action from major media and entertainment corporations. In August 2021, Sony Group made a strategic move by acquiring Crunchyroll, the leading anime-focused OTT platform in the U.S., for $8.7 billion. In April 2022, Toho, Japan’s largest film studio, designated anime as its fourth core business segment alongside film, theater, and real estate. Meanwhile, TV Tokyo Holdings outlined an ambitious plan to make anime and online services its primary growth drivers in its 2022–2024 mid-term business strategy.
Anime production is a complex process divided into three key stages: pre-production, which includes conceptual development, scriptwriting, and storyboarding; production, where key animation, in-between animation, backgrounds, CGI, and special effects come to life; and post-production, covering compositing, color correction, dubbing, and editing. Each stage involves dozens, sometimes hundreds, of in-house staff and external subcontractors. The labor-intensive nature of anime production, often still reliant on traditional hand-drawn techniques, contributes to its high costs and long production timelines. As of 2023, the estimated production cost per episode ranged from $166,000 to $200,000, while a full season, including marketing, averaged around $2.6 million.
By nature, anime production operates under a high-risk, high-reward model. A successful anime can generate substantial profits, but a commercial failure can be financially devastating for a studio. While audiences primarily see the breakout hits, there are countless underperforming projects that never recoup their investment. Even moderate successes often struggle to break even due to escalating production and marketing costs. In the early 1990s, following Japan’s economic bubble collapse, the industry faced severe capital constraints, necessitating a new funding model to sustain production.
This led to the emergence of Japan’s Production Committee (製作委員会) system, a unique financing structure in which multiple corporate sponsors co-invest in an anime, sharing both the financial risk and future profits. Essentially, rather than a single studio shouldering the full production cost, a consortium of companies collectively funds the project and later splits revenue based on their investment shares. Beyond funding, the production committee also oversees the entire production cycle and develops monetization strategies for licensing, distribution, merchandise, and secondary content sales. In legal terms, a production committee is an independent corporate entity, and if any single investor holds over 50% of the shares, the project is classified as a subsidiary of that company.
For anime studios, this system significantly reduces upfront financial risk, ensuring stable funding for projects that would otherwise be difficult to finance independently. The impact has been profound: in 1989, only 77 anime series aired on Japanese television, whereas by 2017, that number had increased to 340.
The first known use of the production committee model in anime was for Studio Ghibli’s Nausicaä of the Valley of the Wind (1985), pioneered by producer Toshio Suzuki. However, it wasn’t until the late 1990s that this model became the industry standard. The landmark success of Neon Genesis Evangelion (1995), produced under a production committee structure by GAINAX, demonstrated the model’s effectiveness. Its financial success set a precedent, leading to widespread adoption across the industry. Franchises such as Pokémon and Digimon Adventure further cemented the production committee approach, and today, an estimated 80% of all anime projects in Japan are produced under this system.
Source: Sabukaru
A typical production committee consists of a diverse range of stakeholders, including anime studios (e.g., Toei Animation, MAPPA, Ufotable), publishers (e.g., Shueisha, Kodansha), TV networks (e.g., TV Asahi, Fuji TV), merchandise manufacturers (e.g., Bandai Namco), distributors (e.g., Aniplex, Toho), advertising agencies (e.g., Dentsu), and toy manufacturers and gaming companies.
The reason for such a broad consortium of investors lies in anime’s media mix business model—where profitability relies more on merchandising and secondary revenue streams than on broadcast revenue itself. As of 2023, Japan’s domestic anime revenue breakdown was 49% from merchandise, 22% from arcade and gaming, 8% from streaming platforms, and only 7% from television. Given this revenue structure, it is no surprise that the companies controlling these secondary markets wield significant influence over anime production.
While the production committee system has played a crucial role in the expansion of Japan’s anime industry - facilitating funding, mitigating financial risk, and coordinating multiple stakeholders to ensure stable production - it is far from perfect. This section explores its underlying flaws and adverse consequences that have emerged over time.
4.1.1 Box Office Success Benefits Committees, Not Studios
The profit distribution structure within the production committee model is inherently skewed. A 2009 report by the Japan Fair Trade Commission found that the largest financial backers - TV networks, advertising agencies, and publishing houses - typically secure the most substantial equity stakes. In contrast, anime studios often hold less than 10% of the total shares, with some securing as little as 1–2% or functioning solely as subcontractors for a fixed production fee.
While this setup shields studios from financial losses when a project fails, it also means that even in cases of massive success, they reap almost none of the financial rewards. The major investors, such as broadcasters and merchandise distributors, retain exclusive rights to licensing revenue, overseas distribution, and merchandising, ensuring stable profits. Meanwhile, the actual studios responsible for the creative and technical execution, are left with little beyond their initial production fee.
To further maximize returns, the major investors often squeeze production costs by fostering competition among studios. If a studio demands a higher budget, it can be easily replaced, leading to a race to the bottom where studios accept lower rates to secure contracts. As a result, many smaller studios struggle to even obtain production deals, exacerbating industry-wide financial precarity.
This imbalance has worsened over time. A 2021 survey by Teikoku Databank revealed that 39.8% of anime studios in Japan were operating at a loss, the highest deficit rate in industry history. Despite the anime industry’s booming revenue, studios continue to face deteriorating financial conditions.
For those that cannot maintain profitability, bankruptcy becomes inevitable. Studio Fantasia, despite earning $2.5 million in annual revenue, folded in 2006 due to consistent losses. More notably, Manglobe, the studio behind Samurai Champloo and Ergo Proxy, filed for bankruptcy in 2016 - a high-profile casualty of the system’s inherent flaws.
Source: Game Rant
In response, some studios have sought alternative revenue models to break free from the traditional committee structure. Kyoto Animation and Production I.G have increased their ownership stakes in projects, giving them greater control over financial returns. Comix Wave Films, under director Makoto Shinkai, experimented with a Pixar-like independent funding model for Your Name, leading to a record-breaking box office success. Meanwhile, MAPPA has pursued crowdfunding and direct financing, notably producing Chainsaw Man without a production committee.
However, such independence remains a privilege of the few. As of 2020, Japan had 692 anime production companies, yet only a handful - Toei Animation, Ufotable, MAPPA, Bones, Madhouse, Sunrise, and Wit Studio - have the financial leverage to self-fund projects. The overwhelming majority remain trapped in the subcontractor model, struggling with thin margins and rising costs.
Source: Youtube
4.1.2 The Exploitation of Animators and Subcontractors
The consequences of this exploitative financial structure extend beyond studios - it has severely impacted animators as well. A survey by the Japan Animation Creators Association (JAniCA) found that animators in Japan work an average of 219 hours per month, with a median of 225 hours. Their hourly wages range between $4 to $6, with entry-level and mid-career animators earning even less.
Beyond low wages, employment conditions are often precarious. The majority of Japanese animators work as freelancers or short-term contract workers, meaning they lack access to healthcare benefits, retirement plans, or paid leave. Many endure 12-hour workdays, six days a week, leading to rampant burnout.
In 2019, Madhouse, the studio behind A Place Further Than the Universe and Death Note, faced government scrutiny for enforcing extreme overtime, with reports of animators working over 390 hours per month. Such exploitative conditions have led to a growing talent exodus, threatening the industry’s long-term sustainability.
The cultural perception of animation as a passion-driven industry has further enabled this exploitation. The prevailing sentiment that animators should be motivated by artistic devotion rather than financial compensation has served as a justification for systemic underpayment. Additionally, Japan’s rigid seniority-based employment hierarchy has stifled career progression for younger talent, discouraging innovation within the industry.
Source: WSJ
In recent years, some studios and corporations have initiated reform efforts. Ufotable, the studio behind Demon Slayer, has minimized outsourcing and expanded direct employment to enhance both production quality and animator compensation. Netflix has introduced financial support programs for emerging animators, while Bandai Namco has launched training initiatives to cultivate new talent.
However, these efforts remain isolated and insufficient. Without fundamental restructuring of the production committee’s profit distribution model, neither studio solvency nor animator welfare is likely to see meaningful improvement. For Japan’s anime industry to maintain its global competitiveness and long-term sustainability, more comprehensive structural reforms are imperative.
4.2.1 Erosion of Creative Autonomy and Artistic Integrity
While anime studios are responsible for the creative execution of a project, the production committee model inherently restricts their artistic freedom due to structural limitations in funding. Investors in the committee are not mere financial backers; they wield direct influence over content, character designs, and even the narrative’s conclusion, prioritizing commercial viability over creative integrity.
Studios are often in no position to reject these demands. Investors frequently view anime as a marketing tool rather than an artistic medium, leading to mandates such as adding new characters to boost merchandise sales, incorporating promotional songs for record label tie-ups, or altering plot elements to align with licensing deals. This market-driven approach dilutes the originality of source material, compromises narrative cohesion, and reduces anime adaptations to little more than advertisements for manga and light novels. Consequently, experimental and unconventional projects struggle to secure funding, as production committees overwhelmingly favor low-risk, commercially proven franchises.
Source: Gundam Base Tokyo
More significantly, the production committee structure complicates decision-making for directors and production teams. Any creative modifications, such as revising character designs or altering story elements, require approval from multiple stakeholders, including manga publishers, figure manufacturers, and corporate sponsors. The necessity of pleasing all investors often results in artistic compromises, as financial interests take precedence over storytelling. In cases where stakeholder priorities conflict, production delays and diluted creative visions become inevitable.
Ironically, the very system designed to distribute financial risk has ended up stifling creative freedom. With profitability superseding artistic ambition, the industry risks becoming increasingly formulaic, limiting the potential for innovation. This dynamic poses a long-term threat to the global competitiveness of Japan’s anime industry.
4.2.2 Keeping Fans at Arm's Length
The production committee model also impedes direct engagement between creators and fans, reducing anime audiences to passive consumers rather than active participants. Given that anime thrives on strong fan-driven communities, this structural limitation hinders the industry’s long-term sustainability.
Today, fan interaction with anime IPs remains highly restricted - limited to watching anime, purchasing merchandise, attending events, or participating in online discussions. There are few opportunities for fans to contribute meaningfully to the creative process or be financially rewarded for their engagement. Even fan-made content, such as artwork, tribute videos, or custom merchandise, often faces copyright enforcement, despite the ironic reality that fan-driven content has been instrumental in elevating anime franchises to global prominence.
This closed-off approach to IP management creates structural barriers to expansion. Modern audiences no longer see themselves as mere consumers but as active participants who wish to engage, contribute, and even co-create. As digital content consumption habits evolve, and as the line between creators and audiences continues to blur, the anime industry’s one-directional content distribution model risks becoming increasingly outdated. This effectively eliminates opportunities to extend IP lifespans. The industry now requires new structures enabling closer connections between creators and fans to facilitate continuous IP expansion and fandom vitalization.
To summarize the challenges discussed earlier, the anime industry has long operated under a production committee system dominated by major corporations. While this model has enabled large-scale production and commercialization, it has also led to systemic inefficiencies: studios struggling with profitability, independent creators facing barriers to funding, creative decisions dictated by corporate interests, animators subjected to poor working conditions, and fans left with little agency in shaping the content they love.
Web3 introduces a decentralized alternative that addresses these structural challenges. By leveraging blockchain-based token economies, the industry can unlock new funding mechanisms, establish more transparent and equitable revenue distribution, create liquid markets for fandom and secondary sales, decentralize ownership, and enable direct fan participation in content development and governance. In doing so, Web3 offers a path toward a more sustainable, creator-driven, and fan-powered anime ecosystem.
One of the most immediate applications of Web3 in anime lies in direct-to-fan community token funding, which allows studios and creators to bypass traditional financing models and raise capital directly from a global fanbase. This model reduces reliance on production committees, enhances creative independence, and strengthens a studio’s bargaining power when negotiating funding structures.
Most importantly, it opens new opportunities for mid-tier studios and independent creators, who are often sidelined in a system that prioritizes established IPs and commercially validated projects. Token funding democratizes access to capital, providing a lifeline for more experimental and niche productions.
Of course, building an engaged fanbase remains a prerequisite for successful funding. However, the rise of platforms like YouTube, Twitter, and TikTok has made it easier than ever for creators to cultivate a following organically. Viral marketing and direct audience engagement now allow smaller studios to gain traction without the need for traditional distribution networks.
The viability of direct fan-supported financing has already been demonstrated through traditional crowdfunding platforms such as Patreon, Kickstarter, and Fantia. Patreon alone has facilitated over $3.5 billion in creator payouts since its launch in 2013. As of 2024, it hosts 270,000 creators and over 8 million patrons, with top-tier creators generating millions in annual revenue.
Crowdfunding has already proven effective in anime production. In 2015, MAPPA Studio raised over 36 million yen from 3,374 backers to produce “In This Corner of the World.” Initially released in 2016 as a limited theatrical release, the film attracted 2.1 million viewers and remained in the box office Top 10 for 15 consecutive weeks, a clear indication of fans’ willingness to finance the content they care about.
Source: In this Corner of the World
What advantages does Web3-based token funding offer over traditional crowdfunding? The blockchain approach enables peer-to-peer global funding without intermediaries, eliminating platform fees (typically 5-10%) while facilitating seamless cross-border transactions. Blockchain's transparent ledgers provide visibility into fund allocation and project development, addressing the opacity of traditional funding models. Most significantly, Web3 models transform fans from passive supporters into genuine stakeholders in the IP's long-term success, fundamentally reshaping the relationship between creators and their audiences.
Traditional crowdfunding models offer limited, one-directional engagement - fans contribute funds in exchange for exclusive content, behind-the-scenes access, early releases, or presale tickets. Even in success stories like MAPPA Studio’s In This Corner of the World, backers received rewards such as thank-you letters, limited-edition merchandise, or their names in the credits. While meaningful, these benefits do not extend to creative influence or shared financial upside.
Web3 fundamentally changes this dynamic by introducing tokenized ownership and fan-driven governance through DAOs. Instead of passive support, fans gain an active stake in the creative process. At a basic level, NFT holders could vote on theme songs, character designs, or IP expansion strategies, fostering deeper participation. This shift transforms fans from mere consumers into co-creators, investors, and stakeholders in the IP’s long-term trajectory. Their contributions are recognized through transparent incentive structures, ensuring that the anime ecosystem evolves collaboratively rather than being dictated solely by corporate interests.
This model may not eliminate all uncertainties, but it offers a compelling alternative to the commercial pressures of the production committee system, which often prioritizes short-term profit over creative integrity. Fans, by contrast, tend to view IPs as cultural assets rather than mere commercial products, making them more invested in long-term quality rather than short-lived monetization cycles.
Several Web3-native projects have already begun pioneering this shift. Azuki and Animecoin stand out as key players experimenting with fan-integrated IP expansion. Azuki founder Zagabond’s vision for “Anime 2.0” presents a blueprint for a fan-driven model. A notable case study is the “Azuki Anthology Series: Enter The Garden Episode 1,” which integrated NFT holders’ characters directly into the animation. Community members such as Dingaling, Andrew Kang, AlchemistXIX, and CarlChoi saw their NFTs brought to life in the story, with 10,000 personalized variations ensuring each holder received a unique viewing experience.
Source: Azuki
Another example is Square Enix’s Symbiogenesis, an Ethereum and Polygon-based project featuring 10,000 NFT characters. The game introduces a novel storytelling approach in which each character possesses exclusive lore accessible only to its owner. Players can choose to either monetize or share their knowledge, shaping the game’s unfolding narrative through decentralized collaboration.
What sets Symbiogenesis apart is its player-influenced ending. The six-chapter game grants three select players the opportunity to determine the final outcome through a World Mission system. This experimental approach integrates player agency into the IP’s core storytelling structure, positioning Web3 as a tool for narrative co-creation rather than just digital collectibles.
Source: Square Enix
From a monetization perspective, Web3 models offer clear advantages over traditional crowdfunding. In conventional models, backers receive fixed rewards with no potential for value appreciation. By contrast, NFT-based ownership introduces a secondary market, where tokens can accrue value over time and be freely traded. Early supporters are incentivized not just by the project itself, but by the possibility of financial upside if the IP succeeds.
This dynamic is not new. Trading card markets have long demonstrated the phenomenon of value appreciation through scarcity and cultural significance. A 1999 first-edition Charizard Pokémon card, initially worth only a few dollars, sold for $420,000 in 2022. Even more striking, a Pikachu Illustrator card fetched $5.3 million, purely as a collectible. These cases illustrate how early ownership in culturally significant assets can yield outsized returns, providing strong incentives for early adopters.
Not all NFT-based experiments have succeeded, however. Disney’s VeVe collaboration with Marvel saw limited success because it merely minted static digital images on-chain without adding meaningful functionality. This underscores a crucial lesson: Web3 projects must offer long-term utility beyond mere collectibility to achieve sustained value.
Ultimately, properly designed Web3-based participation models offer a compelling path to enhancing anime IP longevity and sustainability. By aligning incentives between creators and fans, they can address the structural limitations of the production committee system and reinforce global competitiveness. The future of anime may not be fully decentralized - but integrating tokenized participation and community-driven incentives could unlock new frontiers for creativity, funding, and engagement.
Web3 introduces a fundamental shift in how fandom-driven assets are valued, traded, and analyzed, creating new value propositions for fans while providing companies with strategic data insights from secondary markets - an area that has historically been difficult to track.
The global second-hand goods market is estimated to be worth $523.2 billion as of 2024 and is expected to grow at a CAGR of 13.6% during 2024~2032, spanning a vast ecosystem that includes resale platforms like eBay and Poshmark, informal communities, and niche marketplaces for event tickets, memberships, and merchandise. However, within the traditional framework, IP owners have little visibility into secondary market transactions, making it difficult to assess resale trends, price fluctuations, or overall demand patterns.
Blockchain technology offers a solution to these limitations by recording all transactions on-chain, enabling transparent ownership verification, real-time pricing insights, transaction frequency tracking, and user behavior analysis. The ability to trace how fans interact with digital and physical assets on-chain, from purchase history to holding durations, creates data-driven opportunities for IP valuation, targeted marketing strategies, and optimized product development. This newfound transparency can significantly enhance investment decisions and long-term business strategies.
Source: Etherscan
Recognizing this potential, major corporations are already adopting Web3 ticketing and collectibles strategies. Ticketmaster launched NFT-gated ticket sales in 2023 to gain better control over secondary market dynamics and diversify revenue streams.
Azuki’s Physical Backed Token (PBT) technology has taken this concept further by bridging on-chain verification with physical goods, offering a decentralized method for authenticating and tracking ownership history without relying on centralized servers. This trustless authentication model allows users to verify product authenticity independently, creating new possibilities for secure secondary market trading.
Source: Azuki
Azuki has implemented this model across various PBT-enabled merchandise drops, including the Brown x Beanz toy, Satoshi Nakamoto Hoodie, and an exclusive hoodie collaboration with Ambush. These products are actively traded on the blockchain, providing real-time analytics on resale trends, ownership transfers, and demand cycles.
Anime has long been a catalyst for fan-driven creativity, inspiring artwork, fanfiction, UGC games, and various other derivative works. Over time, this secondary creative ecosystem has evolved into a sizable industry in its own right. One of the most prominent examples is Japan’s doujinshi (self-published works) market, which has grown into a $700 million industry fueled by passionate fan creators.
Comiket, the world’s largest doujinshi convention, recorded over 750,000 attendees in 2019, illustrating the immense engagement within this fan-driven economy. Meanwhile, the global fanfiction community has flourished, with platforms like FanFiction.net and Archive of Our Own (AO3) hosting over 440,000 Naruto-related fan stories alone. Similar trends can be observed for franchises like One Piece, Bleach, Inuyasha and more, each boasting tens to hundreds of thousands of fan-made derivative works.
Source: Comiket 2023 (Crunchyroll)
Despite the vast economic and cultural impact of fan-made creations, IP holders have historically struggled to monetize these secondary markets. In Japan, doujinshi has largely operated in a legal gray area, tolerated by major publishers due to its positive impact on IP visibility and fan engagement. In reality, if publishers had aggressively enforced copyright restrictions, the global expansion and influence of anime culture might have been severely hindered.
출처: Fanfiction.net
Blockchain technology presents a new paradigm for managing and monetizing fan-driven IP expansions. By tokenizing IP rights, publishers can create officially sanctioned channels for derivative content, implementing royalty-sharing models that reward both original IP holders and fan creators. Instead of fighting against the doujinshi economy, studios and publishers can collaborate with fan communities to extend anime IPs through licensed spin-offs, NFT-based collectibles, and gamified engagement mechanisms.
This shift could unlock sustainable economic incentives for fan creators, transforming previously informal secondary markets into scalable, revenue-generating ecosystems. By formalizing these interactions, Web3 could pave the way for a collaborative, mutually beneficial model where fan-driven creativity and official anime IPs evolve together, rather than existing in opposition.
As we conclude this report, it is worth spotlighting Animecoin, a project at the forefront of Web3 and anime industry convergence. Developed in collaboration with Arbitrum and the Animecoin Foundation - an independent entity stewarding the future Anime DAO - Animecoin is building a decentralized anime ecosystem that redefines how anime is created, monetized, and owned. Azuki, as an early contributor to Animechain, has played a key role in shaping the Anime 2.0 vision.
This section provides a brief overview of Animecoin’s core initiatives and strategic direction. For a more in-depth analysis, refer to the dedicated report “Animecoin: The Future of Anime is Yours.”
Animecoin’s ‘Full Stack Anime' strategy is built on three main pillars:
Azuki Entertainment: Azuki Entertainment is the driving force behind Azuki’s media expansion, covering licensing, merchandise, video content, manga, novels, music, gaming, and more. The most notable milestone to date is the Azuki Anthology Series, developed around the Elementals IP. The first two episodes, Enter The Garden: Ep 1 - The Waiting Man and Fractured Reflections, were directed by Goro Taniguchi (of Code Geass and One Piece Film: Red fame), garnering over 2 million views on YouTube and 6 million on Weibo, demonstrating strong global reception.
Anime.com: Anime.com aims to unify the fragmented anime ecosystem into a comprehensive hub for anime fans worldwide. It serves as a single entry point for content discovery, streaming, fan engagement, and direct creator interactions. Within this ecosystem, $ANIME functions as the primary transaction token, driving platform activity and strengthening Animechain’s token economy. The platform has already onboarded over 3.3 million wallets and facilitated the minting of 13.6 million NFTs, showcasing rapid adoption.
Animechain: Animechain is the backbone of the Animecoin ecosystem - an L3 Orbit chain built on Arbitrum Nitro, designed to on-chain anime fandom data, IP rights, and collectibles. This decentralized infrastructure transforms the ownership, licensing, and revenue models of anime IPs. $ANIME serves as the native gas token, charging transaction fees that fuel network operations. Beyond its role as a gas token, $ANIME will also function as a governance token, enabling community members to participate in key decision-making processes. For example, the Community Cultivation Fund (13% of total supply) empowers $ANIME holders to participate in ecosystem funding decisions, aligning incentives between fans and creators in the production and ownership of new content.
Since its TGE on January 23, 2025, $ANIME has experienced a downtrend, stabilizing around $0.025~$0.028 with a market cap of ~$150M and an FDV of ~$270M as of Feb 27, 2025. Notably, 55.4% of total supply is already circulating, with 40% of that originating from the initial community airdrop. Meanwhile, Azuki OG NFTs, which surged to 12 ETH pre-airdrop, have since retraced to 3 ETH, reflecting post-TGE market adjustments. Despite the recent price correction, Animecoin’s long-term trajectory warrants closer examination. Several structural factors suggest that its fundamentals remain intact.
The crypto industry has long prioritized infrastructure development while largely neglecting consumer-facing applications with real-world utility. Despite ambitious claims of serving millions of users, many blockchain projects have failed to deliver practical use cases, leading to an ecosystem of underutilized “ghost chains.” However, recent success stories like Hyperliquid and Kaito, which emphasize a product-first approach, have shifted the focus toward user acquisition and real adoption within the Web3 space.
Animecoin aligns with this trend by addressing real inefficiencies in the anime fandom experience and demonstrating the tangible benefits of blockchain technology. Today, anime enthusiasts navigate a fragmented landscape of platforms for streaming, reviews, news, and merchandise purchases. Anime.com consolidates these functions into a single ecosystem, offering a seamless experience tailored to anime fans. This unified approach has already yielded impressive results - prior to its mainnet launch, Animechain onboarded over 3.3 million wallets and facilitated the minting of 13.6 million NFTs, underscoring its strong early adoption.
On the content front, strategic partnerships are fueling expansion. AniplexUSA’s “Fate/stay night: Unlimited Blade Works” is set to stream on Anime.com, with additional licensing deals reportedly in progress.
This strategy aligns with evolving consumer preferences. Modern users favor highly personalized, niche platforms over large-scale, generic services. Anime.com taps into this shift by offering profile customization, avatar-based identities, and community engagement features that enhance immersion and strengthen platform loyalty.
Crunchyroll’s success serves as a compelling precedent for this model. Despite competition from global streaming giants like Netflix, Crunchyroll established a dominant position by catering exclusively to anime fans through features like simulcast releases, curated libraries, and community-driven interactions. As of 2020, it had amassed over 100 million registered users and 5 million paid subscribers, generating $120 million in annual revenue before its $1.2 billion acquisition by Sony.
Anime.com seeks to replicate this success while leveraging blockchain for digital ownership and fan participation, bridging Web3 capabilities with the anime industry. Its goal is to address the longstanding gap between consumer engagement and content ownership, positioning itself as a pivotal player in the evolution of the anime ecosystem.
Kevin Kelly states in this 1,000 True Fans theory:
“To be a successful creator you don’t need millions. You don’t need millions of dollars or millions of customers, millions of clients or millions of fans. To make a living as a craftsperson, photographer, musician, designer, author, animator, app maker, entrepreneur, or inventor you need only thousands of true fans.
A true fan is defined as a fan that will buy anything you produce. These diehard fans will drive 200 miles to see you sing; they will buy the hardback and paperback and audible versions of your book; they will purchase your next figurine sight unseen; they will pay for the “best-of” DVD version of your free youtube channel; they will come to your chef’s table once a month.”
Azuki has not only achieved but far surpassed this threshold, cultivating a highly engaged and high-purchasing-power user base. The Azuki OG NFT continues to trade at approximately 3 ETH, reflecting both strong community conviction and substantial financial commitment. This affluence positions the Azuki ecosystem as an ideal foundation for Animecoin’s expansion.
Economic principles further validate this dynamic. Pareto’s 80/20 Rule, which states that 20% of users generate 80% of economic activity, is particularly relevant in blockchain ecosystems. In mobile gaming, for instance, the top 0.15% of players contribute over 50% of total revenue.
Animechain’s strength lies not just in its affluent user base, but in the deep alignment between its holders and the project’s long-term vision. Unlike speculative investors, Azuki NFT holders are crypto-native users with a sophisticated understanding of blockchain technology, making them highly engaged participants in Animechain’s ecosystem. This distinction is crucial—while many tokenized projects struggle with transient speculation, Animechain benefits from a dedicated, long-term community willing to actively shape and expand its ecosystem.
In a crypto market increasingly driven by community dynamics, this alignment between cultural engagement, financial commitment, and technical literacy provides Animecoin with a significant strategic edge over its competitors.
Azuki is actively expanding beyond NFTs, pursuing a multi-pronged business strategy that spans entertainment, blockchain infrastructure, and decentralized applications. This diversification is crucial for long-term resilience and sustainable growth.
Its off-chain revenue model encompasses serialized content, licensing, merchandise, gaming, and more - mirroring traditional entertainment giants. A prime example of how Web3-native IP can successfully transition into mainstream markets is Pudgy Penguins. In 2023, Pudgy Penguins launched “Pudgy Toys,” securing retail distribution with Walmart, Amazon, and Target. In under a year, the brand sold over 1 million units, generating $13 million in revenue - a testament to the viability of Web3-native IP in traditional consumer markets.
Azuki is executing a similar strategy by expanding its brand beyond digital assets. Its merchandising efforts include PBT-integrated products such as Ambush hoodies, limited-edition LINE x Beanz accessories, and Twin Tiger Jackets. The upcoming Anthology anime series marks Azuki’s entry into long-form storytelling, embedding its IP further into mainstream media. In the gaming sector, a trading card game based on the Azuki IP is set for release in spring 2025, developed by Jonathan Chao, a former game producer at Tencent and Riot Games.
On-chain revenue streams are also a core component of Animechain’s economic model. Sequencer fees within the network serve as a primary monetization channel, with portions allocated to the AnimeDAO treasury to fund ecosystem growth. Anime.com can potentially introduce additional revenue streams through digital collectibles, such as stickers and limited-edition assets, as well as an in-house NFT marketplace that captures royalty revenue from peer-to-peer trades. Subscription-based streaming models integrating premium content access can also provide another layer of monetization, further reinforcing the economic sustainability of the ecosystem.
Another key differentiator for Animechain is its community-driven creator economy. Over the past three years, Azuki has fostered more than 100 sub-communities and amassed over 1 million global followers. This foundation enables NFT holders to actively participate in content creation, reinforcing the brand’s network effect and allowing the community to contribute directly to the ecosystem’s expansion.
This creator-first model is a significant departure from traditional IP licensing, which often restricts fan contributions. Instead, Animechain provides a framework for decentralized content co-creation, allowing Web3-native artists, writers, and developers to leverage their NFT assets in storytelling, merchandise, and gaming.
Animecoin represents a pivotal convergence of blockchain and anime, leveraging Web3’s ownership models, decentralized governance, and community-driven economies to redefine how anime is created, distributed, and monetized. Its targeted market strategy, high-value user base, and diversified expansion efforts position it as a strong contender for long-term success. While short-term market fluctuations are inevitable, the project’s structural foundation and deeply engaged community suggest a trajectory that is worth watching closely.
