KIP-22: Strategic Reserve Fund for Long-Term Ecosystem Growth and Partnerships

Final Proposals Approved Proposals
1

KIP Type: Non-Constitutional (Funding)

Author: AMGI Studios

Title: Strategic Reserve Fund for Long-Term Ecosystem Growth and Partnerships

Requested Amount: Remaining Balance of the Treasury at time of submission

Abstract

This proposal requests the remaining balance of the KARRATCo Treasury at time of submission to establish a long-term Strategic Reserve Fund to be held and deployed by AMGI Studios. This reserve will enable AMGI Studios to directly pursue high-impact opportunities that expand the reach, visibility, and utility for Studio Chain and KARRAT token ecosystem starting with, but not limited to, the My Pet Hooligan game. Use cases include but are not limited to major partnerships, business development, developer grants, development, and onboarding initiatives.

This reserve is intended to empower AMGI Studios to move quickly and decisively in securing key growth opportunities and competitive advantages.

Motivation

This KIP is being submitted in response to the previous and similar proposal submitted by

BigBag. AMGI Studios understands the frustration of the KARRATco and believes this KIP can address such concerns. As the creators of My Pet Hooligan and working to bring utility to the Studio Chain and KARRAT token ecosystem starting with the My Pet Hooligan game, AMGI Studios is uniquely positioned to drive long-term strategic growth. This includes negotiating partnerships, expanding into new markets and further development while working with the Karrat Foundation. However, without a dedicated, pre-approved reserve, these opportunities are slowed by fragmented funding or missed entirely due to lack of agility.

This proposal equips AMGI Studios with the resources necessary to deliver real-world results for the KARRAT ecosystem, faster, more effectively, and at the scale the market demands.

Strategic Context and Benchmarking

To compete in the current environment, ecosystems must have fast-moving, well-capitalized partners authorized to secure meaningful growth:

  • ApeCoin DAO treasury being wound-down and turned over to ApeCo Team
  • Optimism allocated 25% (1,072,500,000 OP) of its total supply for ecosystem expansion
  • zkSync set aside 19.9% (4,179,000,000 ZK) for similar initiatives
  • Arbitrum recently requested 250 million ARB for strategic partnerships due to vesting restrictions limiting their agility

The KARRATCo must match this level of readiness and can do so by empowering its core contributor, AMGI Studios.

With the expansion of the KARRAT ecosystem, specifically in regards to launching an L2 chain with Arbitrum & Caldera, there is a greater need for flexibility, funding and business development for success.

The ability to grow market share, visibility and compete with other protocols is currently limited by:

  • A lack of flexible funding under the control of its core ecosystem builder AMGI Studios that can be used to support a number of cases including business development, campaigns and large partnerships
  • Inability to make timely, compelling offers in competitive deal environments. Chains and protocols often encourage or secure builders with small grants and as well as technical and community support. In a competitive environment KARRAT, Studio Chain and AMGI Studios need to be positioned as well as other leading chains and studios
  • Fragmented governance cycles slowing down high-priority initiatives
  • Missed opportunities around brand partnerships, and onboarding programs that may require commitments that include tokens

Proposed Solution

Authorize a Strategic Reserve Fund of Remaining Balance of the KARRATCo Treasury at time of submission, to be held and deployed by AMGI Studios. The fund will be used exclusively for initiatives that grow adoption of the KARRAT token, Studio Chain and My Pet Hooligan ecosystem. Specific use cases include, but not limited to:

  • High-value partnerships with major IPs, tech stacks, or distribution platforms
  • Strategic grants or infrastructure support for key contributors
  • Global brand and go-to-market activations

The reserve will be managed by AMGI Studios and will be deployed based on opportunity timing, deal structure, and alignment with the long-term vision of the ecosystem.

Override of Conflicting Frameworks

This KIP also proposes revoking KIP 10, which delegated 50 million KARRAT to the KARRAT SubDAO for voting purposes. Upon passage of this KIP, all 50 million KARRAT will be revoked and become part of the Strategic Reserve Fund under AMGI control. Regarding the Burn Bolster mechanic, the “bolster” element will be deprecated, while the “burn” element will remain in effect.

Steps to Implement

  1. Fund the pending KIPs and revoke KIP 10
  2. Transfer assets to AMGI Studios, as specified

Timeline

  1. KIP Temp Check Submission
  2. KIP Vote on WinVote
  3. Upon passing of KIP - Immediate funding to AMGI Studios

Reporting Expectations

N/A

Closing Statement

To secure its place at the top, the KARRAT ecosystem cannot simply keep pace, it must accelerate. This proposal is about unlocking that acceleration. By empowering AMGI Studios, we enable decisive action, bold partnerships, and global expansion at a scale that incremental steps can never deliver.

While no path comes with guarantees, this move dramatically positions Studio Chain and the KARRAT ecosystem not just to compete, but to lead. Supercharging every effort and amplifying every opportunity.

Approving this reserve is not only a vote of trust in AMGI Studios. It is a commitment to push Studio Chain and the KARRAT ecosystem into its next era of strength, influence, and category leadership in Web3 gaming, AI entertainment and infrastructure.

2

Will this dissolve the foundation as well? Or are we just giving the tokens to AMGI? We need to get rid of the foundation’s payments in my opinion if we were to put this through. Otherwise the foundation still going to bleed us dry

3

I’m in favor of giving AMGI control over the DAO tokens. If we want KARRAT and Studio Chain to compete at scale, AMGI needs to move fast and not be slowed down by fragmented governance. I support this shift.

That said, my biggest concern has always been the lack of communication and clarity from AMGI to the community. We’re the people who believed early and got this ecosystem to where it is. If the treasury moves fully under AMGI, I’d like to see some structure to reassure progress is being made:

Clear sprint goals each month and a short update at the end of the month

Simple reporting on large spends of KARRAT (not for approval, just transparency)

A monthly high-level update on partnerships, growth, Studio Chain metrics and development progress (Nothing too fancy just factually correct data).

In general I’m not expecting anything sensitive or that would compromise deals, just enough structure so holders know how the fuel is being used. That would give me, and I think many others, the confidence to fully back this.

4

First off, thank you. The feedback we’ve seen around this proposal has been honest, constructive, and rooted in the same reason we’re all here: because we care deeply about the success of My Pet Hooligan, Studio Chain and the broader KARRAT ecosystem. We want to acknowledge the concerns raised and provide clarity where it’s needed.

For those who don’t want to read in detail here’s a TLDR:

Concerns on Transparency:
The community’s concerns regarding transparency are heard. We’ll provide transparency with quarterly ecosystem updates instead of monthly noise, keeping focus on real progress.

Existence of Foundation and Budgetary Concern/Solution:

Having consulted with other stakeholders and partners, we think the foundation ought to remain for Studio Chain and Resiliency Node operations as we near mainnet. The KIP will be updated such that the foundation’s operational budget will be fiat-only, removing any concern about KARRAT sales. Long term, if U.S. regulations allow and with the proper approvals, the Foundation could transition to a stateside entity.

From day one, AMGI has been the constant builder, and we’ll continue balancing agility with accountability so the community feels informed and heard.

For those who would like more detailed information please see below:

1. On Reporting & Communication

We hear you. A recurring concern has been the feeling that there haven’t been enough communications with the community, especially when it comes to progress updates. That’s a fair critique, and it’s on us to improve.

At the same time, we need to balance transparency with the realities of deal-making, legal oversight, and development cycles. Monthly updates, while well-intentioned, would end up pulling critical bandwidth from our team into repetitive legal reviews and communication cycles which ironically slows down the very progress you want updates on.

That said, we agree completely that our community deserves a clearer window into how progress is being made. To that end, AMGI Studios commits to:

● Quarterly ecosystem updates: covering development milestones, partnership progress and more.

Our goal is not to flood you with noise but to deliver updates that matter, backed by real progress you can point to.

2. On the Role of the Foundation.

Another key question raised was: As part of this proposal is the DAO (KARRATco) dissolved and what happens with the Foundation treasury?

First off, we should clarify that the Foundation is an independent entity altogether from AMGI Studios. That said, we have looked into this and believe the foundation ought to exist for a few reasons, mainly around Studio Chain and the Resiliency Node operations. Studio Chain requires a credibly neutral foundation to operate from, and much of the core infrastructure is already in place as mainnet is coming soon. While it’s possible that the Foundation could one day choose to transition to a new entity, potentially a U.S.-based foundation or similar entity, making that shift right now would introduce significant delays to launching Studio Chain and integrating KARRAT fully into My Pet Hooligan. From both a business and project perspective, a wholesale change at this stage would not be wise, safe, or prudent.

Regarding the Foundation’s operational budget, the KIP will be updated to include the Foundation budget as well. This structure removes any concern that the Foundation is holding or selling KARRAT, ensuring that its role is purely administrative and operational. In short, the Foundation will continue to exist for legal and structural reasons, but its activities will be funded via fiat-only and without direct interaction with the sales of KARRAT token.

That said, we are watching regulatory clarity in the U.S. closely. Should the opportunity arise in the future to transition the foundation structure to a new entity and bring more of the operations directly stateside (i.e. DUNA or other potential comparable solutions) such path should be explored carefully with legal guidance.

From day one, AMGI has been, and will remain, committed to building and growing the ecosystem, and the Foundation exists today for a variety of reasons for the betterment of the ecosystem.

Closing Note

We don’t take lightly the trust you place in us. Many of you have been here since the beginning, and you’ve helped carry this ecosystem forward. We recognize that for you to support this next step, you need not just promises but structure and clarity.

Our commitment is to balance agility, moving fast enough to seize opportunities with accountability, ensuring the community feels informed, respected, and heard. With your trust and support, we believe Studio Chain and the KARRAT ecosystem can be accelerated into true category leadership.

- AMGI Studios

P.S. If your grand contribution is copy-pasting this into ChatGPT and asking “what’s wrong with this?” …congrats, you’ve just outsourced your brain. Don’t be that person. Think for yourself. The ecosystem needs hooligans, not hall monitors for MetaZuckBot.

5

Thanks for the response! Some questions that come to my head with this are, how is the foundation being paid with fiat and not Karrat? Where is the fiat coming from? Also, where is the karrat the foundation got at TGE? I think it was 14%. Does that also go to AMGI (as I think it should)?