First NFT IP Gaming Integration: Blockchain Automates Royalties for Creators

The blockchain-based intellectual property (IP) platform Story and AI-powered game creation tool Verse8 have announced a strategic collaboration to integrate Moonbirds and Azuki IP into user-generated games. This partnership, unveiled at the Origin Summit in Seoul on September 23, 2025, aims to leverage Story’s Layer-1 blockchain infrastructure to manage IP licensing, attribution, and revenue distribution through smart contracts. Verse8, which enables users to create 2D and 3D multiplayer games via natural language prompts without coding, reported over 800,000 monthly active users in beta testing. The integration will allow creators to customize Moonbirds and Azuki characters, incorporate them into game environments, and monetize content through in-game purchases or branded expansions, with royalties automatically split between creators, NFT holders, and IP rights owners.

Verse8’s AI-driven platform, co-founded by Jake Song—co-creator of Nexon’s Lineage MMORPG—utilizes proprietary technology to generate 3D assets from single images and a generative agent called “Agent 8” to handle code, art, and audio. By integrating with Story’s programmable licensing system, all IP used in Verse8 games becomes traceable and governed by on-chain rules, ensuring transparent revenue sharing and legal clarity. For example, a player could design an Azuki-themed cyberpunk arena with custom avatars, then offer premium content like exclusive weapons, with revenue automatically distributed via smart contracts. This marks the first time IP holders of NFT collections can bring their assets into interactive gaming formats with enforceable rights and revenue mechanisms.

The collaboration reflects broader trends in digital entertainment, where intellectual property—valued as one of the largest global asset classes—is increasingly difficult to license and manage. Advances in AI-driven content creation have heightened demand for verified, rights-cleared material, while blockchain infrastructure offers automated attribution and royalty distribution. Story’s Layer-1 network, backed by $136 million from investors including a16z, Polychain, and Samsung Ventures, has emerged as a leading infrastructure for tokenized IP. The platform’s ecosystem includes applications like Aria (music IP as real-world assets) and Poseidon (AI training data layer), reinforcing its role as a programmable IP layer for the AI era.

Key figures from both platforms emphasized the transformative potential of the partnership. S.Y. Lee, co-founder of Story, stated that IP “isn’t meant to sit still,” highlighting how programmable infrastructure enables interactive, remixable, and composable IP in a community-driven creative economy. Kevin Lee, CEO of Verse8, noted that Story provides “trusted licensing infrastructure at scale,” enabling user-generated content to respect rights and evolve IP organically. Spencer Gordon-Sand, CEO of Moonbirds, praised Verse8 for expanding community engagement with the IP, while Zagabond, founder of Azuki, emphasized the platform’s role in empowering fans to co-create stories.

The integration of Moonbirds and Azuki into Verse8’s AI-native environment underscores the growing convergence of blockchain, AI, and IP monetization. By eliminating traditional development barriers and enabling rapid game creation, Verse8 democratizes access to game development, while Story’s on-chain licensing ensures fair compensation for all stakeholders. The partnership is expected to debut community-made games featuring these IPs in the coming months, with further plans to expand programmable IP ecosystems across entertainment, music, and AI training data. As the global user-generated content market projects to exceed $80 billion by 2030, this collaboration positions Story and Verse8 at the forefront of a decentralized creative economy.