Written by: TechFlow
Even with a thousand waves, the red bean blossoms towards the sun!
Once, Azuki was the brilliant dream in the hearts of many NFT enthusiasts, a proud social identity display, and then the NFT market fell into a cold silence, and Azuki also faced many challenges and doubts.
Now, Azuki founder Zagabond, with the Animecoin and his anime universe dream, has returned to the stage again, facing the controversy head-on.
On January 23, ANIME (Animecoin) will officially launch.
TechFlow collected questions from several Azuki community members and interviewed Zagabond.
Zagabond believes that the huge gap between the perception of him by the people around him and the assumptions of those who have never seen him is that a person's character is not defined by the views of strangers on the internet, but is reflected in how you consistently treat those who are important to you.
Finally, Zagabond called out to the community, "The power of Azuki comes from our passion and creativity, and we have built something very special here, We're on our way."
About Zagabond
TechFlow: What was your professional career like before founding Azuki? What was the trigger that led you to enter the Web3/NFT field?
Zagabond:
"My journey began in China, and at the age of six I came to Germany, where I first experienced being an outsider. As the only Chinese child in kindergarten, I didn't speak German at the time, and I remember speaking Chinese with my classmates, but not understanding why they couldn't understand me.
This early experience of isolation, combined with later attending seven different schools in multiple countries, cultivated my ability to adapt quickly to new environments - although this also made me cautious about building deep connections. By the time my family finally settled in Long Island, New York, I had developed a strong sense of independence and resilience.
My passion for the digital world began with the MMORPG game RuneScape, where I discovered my fascination with the digital economy. Rather than focusing on traditional gameplay, I was more drawn to the market, becoming obsessed with collecting rare items like the blue party hat - foreshadowing my future interest in digital assets and NFTs. Similarly, Pokémon showed me how a powerful IP can span multiple media, while building a passionate community through collectibles and storytelling.
When I discovered Ethereum in 2016, I immediately recognized its potential as an open, programmable blockchain to host the digital economy. This led me to join the founding team of 0x Protocol in 2017, where we built decentralized trading infrastructure. I was involved in early discussions where we coined the term 'DeFi', which later became the category name for mainstream crypto protocols.
After four years working in DeFi, I saw the opportunity to combine the decentralized principles of cryptocurrencies with the community-building power of NFTs. This vision, to merge the digital economy with brand-building, became the foundation of Azuki, as we strive to bring innovation to the anime industry through a decentralized IP approach."
TechFlow: Why did you choose the name "Zagabond" to present yourself? What's the story behind this name?
Zagabond:
"Zagabond is derived from Vagabond, the classic manga by Inoue Takehiko, which tells the life story of the Japanese swordsman Miyamoto Musashi. The deep philosophical themes in the manga about self-discovery and the meaning of life strongly resonated with me.
I considered a few other pen names at the time, but I remember when listening to one of my favorite Nujabes songs 'Feather', the lyrics 'I'm just a Vagabond with Flowers for Algernon An Average Joe who knows what the fuck is going on' struck a chord, and in that moment I decided on the name Zagabond."
TechFlow: Why did you initially choose to launch Azuki anonymously, and then later decide to reveal your identity? What happened in between?
Zagabond:
"One of my favorite designers is Margiela, a fashion designer who never shows his face. He has always remained behind the scenes, allowing his designs to speak for themselves.
When founding Azuki, I saw it as a way to express myself. I didn't want my appearance or background to influence how the audience perceived the art and brand I was creating.
I remember walking into the Azuki event at NFT LA, standing in the middle of the party, looking around at all the holders having a great time. No one knew who I was. But seeing the community members enjoying the best moments of their lives made me feel very happy and at peace.
As Azuki evolved, and we started making progress in the anime industry, I felt it was necessary to make my persona more public. Ultimately, it was time to put a real face to the name, to show the community that there is a real person behind Zagabond, and to participate in more interviews and live events - so I could lead this space towards my Anime 2.0 vision in an honest and transparent way."
TechFlow: In your view, what is the biggest misconception people have about you?
Zagabond:
"The biggest misconception about me is that I am primarily driven by personal interests, but this is completely contrary to the facts.
What truly drives me is the deep-rooted belief in building an open anime universe through Azuki and Animecoin. After eight years in crypto, I'm fortunate to have achieved financial freedom - I don't need to work at all, let alone in such a demanding field. But if I didn't pursue this vision in my prime, I would deeply regret it.
Being a crypto founder is not always glamorous. It means constant pressure, malicious online narratives, and adapting to rapidly changing trends. I've made significant personal sacrifices for this role. But I persist because I love creating extraordinary things with exceptional people - this is the essence of the Azuki garden.
The me that those who know me - my friends, team, and the Azuki community - see, is vastly different from the assumptions of those who have never met me. I'm in this space because I'm passionate about innovation, I love bringing creative minds together to build revolutionary things."
TechFlow: Compared to 2 years ago, what changes have you noticed in yourself? When was the last time you completely changed your perspective on something?
Zagabond: "Watching people spread misinformation about me online over the years has actually given me a strange kind of freedom - it has taught me what truly matters.
I know who I am, and the people closest to me know too. That's enough. A person's character is not defined by the opinions of strangers on the internet - it's reflected in how consistently you treat those who are important to you. Through every high and low, I've stood by the community, because I genuinely care about every member. That is what matters most."
About the Elementals Controversy and Community Sentiment
TechFlow: In 2023, the launch of the Azuki "Elementals" series caused quite a bit of controversy, pushing the community's discontent to a peak. Looking back, do you think the Elementals series was a failed attempt that hurt the community's emotions, and do you regret it?
Zagabond: "Azuki Elementals represented our vision to expand the Azuki universe, aiming to create an easier entry point into the garden. Through Elementals, we achieved unprecedented accomplishments - it remains the most intricate hand-drawn PFP series to date, with a complexity of art and trait combinations unmatched by any other.
However, we underestimated the community's attachment to the original Azuki aesthetic and the importance of maintaining that consistency. The Elementals launch was not executed as smoothly as it could have been, and we failed to properly communicate our long-term vision and the role Elementals would play.
In retrospect, I regret not being more transparent and doing a better job of aligning the community's expectations. The backlash was a humbling experience, and it reinforced the need to always put the community first. We've learned from this, and it has made us stronger as a team and as a community.
Moving forward, we will be more thoughtful and deliberate in our approach, ensuring that any new initiatives or expansions are fully embraced by the Azuki faithful. The community's trust and sentiment are of the utmost importance, and we are committed to earning that through open communication and consistent execution."
The core strategic move to expand the accessibility of the Azuki ecosystem is correct, and we have seen this validated through the influx of vibrant new community members brought in by Elementals. However, our execution, particularly in marketing and communication, could have been better. We have been accustomed to maintaining an aura of mystery and surprise around product launches, but this space has become more mature.
Elementals has taught us valuable lessons about transparency and expectation management. While the individual still believes the decision to expand the Azuki universe was the right one, we have improved our approach to better meet the community's needs for clear communication and engagement.
TechFlow: By issuing Elementals, you have accumulated 20,000 ETH. Where have these funds been primarily spent?
Zagabond:
"All the revenue the company has generated has been invested into furthering our mission of creating an open anime metaverse.
We have built an outstanding team of 45 members. We are very selective in our hiring - we look for people who not only have amazing skills but are also passionate about web3 and anime.
These funds are crucial for developing high-quality products and experiences that showcase the possibilities of Web3. We have made tremendous progress in establishing Azuki as a leading anime brand in this space, while also building anime.com into a true home for global anime fans."
TechFlow: In addition to the Elementals incident, in May 2022, you admitted to having been involved in other failed NFT projects (such as Tendies, CryptoZunks) which shook the trust of many holders. Two years have passed, do you feel you have rebuilt the trust relationship with the community? What efforts have you made in this regard?
Zagabond:
"Let me address this question directly: Prior to Azuki, I did indeed launch three experimental NFT projects - Phunks, Tendies, and Zunks. While I delivered on all the promised functionality for these projects, I recognize that the way I handled the project transitions could have been more professional and transparent. As such, I returned all the proceeds I obtained from these projects back to their respective communities.
Since acknowledging this in May 2022, I have been fully focused on the development of Azuki. Azuki has grown from a PFP project into a globally recognized anime brand, which reflects not only my personal commitment but the power of our entire team and community. Azuki represents my long-term vision and dedication to building truly meaningful things in this space."
About the ANIME Token
TechFlow: After the successful launch of the PENGU token by Pudgy Penguins, Azuki has also announced the launch of the ANIME token. Is this simply following market trends? How do you ensure the ANIME token will bring substantive value to the ecosystem, rather than just chasing hype?
Zagabond:
"$ANIME is the cultural token of the anime industry, aimed at revolutionizing the anime industry into a community-driven creative network. The Animecoin Foundation announced the birth of the Animecoin project as early as March 2024, which has been in the works for nearly a year."
TechFlow: On the official website, ANIME is defined as a cultural token. How do you understand the concept of a cultural token, and what are the long-term goals and vision for ANIME?
Zagabond:
"Anime has evolved from a subculture to become a mainstream part of pop culture. Luxury brands like Chanel and Burberry are collaborating with anime brands, athletes mention anime in post-game interviews, and rappers like Megan Thee Stallion are using anime soundtracks.
However, despite anime's global reach, the anime industry still faces some key structural issues. On the fan side, while they are heavily invested in cryptocurrencies, there is a lack of proper fan loyalty and consumption attribution mechanisms. On the creator side, due to the unique financing structure of Japanese anime, many animators and IP holders do not see commensurate incomes.
We believe there is a unique opportunity here, which we call Anime 2.0. Crypto technology can fundamentally transform the anime fan experience by integrating these disparate fan components on-chain, allowing IP holders to accurately measure the depth of their fan base and unlock new revenue opportunities by monetizing more engaged fan communities.
To support Anime 2.0, our strategy involves what we call 'full-stack anime':
This strategy aims to create a flywheel effect, where each component drives the growth of the others. By seamlessly integrating blockchain infrastructure, consumer platforms, and IP, full-stack anime ensures the network becomes more valuable and self-sustaining as more users and developers join. It consists of three parts:
Blockchain Infrastructure: Animechain is an L3 blockchain utilizing Arbitrum Orbit technology, with Animecoin as the custom fuel token. This setup simplifies the experience for Web2 anime fans; they only need to understand and acquire Animecoin, reducing the complexity of managing multiple tokens, while enabling feeless (sponsored) transactions to achieve seamless onboarding.
Anime.com: Introducing web2 users through consumer products is crucial to triggering the value-accretive flywheel effect. A large user base attracts more teams to build on the network, which in turn brings more users. Anime.com aims to become the dominant social layer for the entire anime industry, akin to how Discord is for gaming.
Content and IP: IP development provides the cultural energy to drive the entire tech stack. IP is the layer that ties all the pieces together, unifying the community's enthusiasm for Animecoin.
TechFlow: According to the published token economics, 37.5% of the tokens will be allocated to the Azuki community, 13% will be used for AnimeDAO, 24.44% will be allocated to the Animecoin Foundation, 2% will be allocated to partner communities, 15.62% will be allocated to the team and advisors, and 7.44% will be used for Azuki the company. In other words, 60.5% of the token supply is returning to the Azuki official hands. What is the rationale behind this token allocation?
Zagabond:
"I see some misunderstanding/misinformation about the token economics, which seems to imply that 60.5% of the tokens are controlled by Azuki - this is incorrect.
The Animecoin Foundation is an independent, memberless entity (i.e., no shareholders) and is not affiliated with Azuki. No one on the Azuki team, including myself, is a shareholder (again, emphasizing that the Animecoin Foundation has no shareholders), director, employee, or other controller of the Animecoin Foundation. It has its own board of directors, advisors, and service providers. The Animecoin Foundation is the administrator of the AnimeDAO governance process. It is also the dedicated entity to drive ecosystem growth, and will use its allocation to fund ecosystem initiatives, grant programs, and other efforts to connect Animecoin and the broader anime ecosystem.
The 13% of tokens allocated to AnimeDAO will be used and deployed solely through the governance process, by decision of ANIME token holders. These tokens will be held in a separate DAO treasury multisig wallet, controlled by the Animecoin Foundation, with Azuki not being a signatory/having no control. These tokens can only be used per governance proposals approved by the AnimeDAO.
TechFlow: At the time of token release, 76.94% of the tokens will be fully unlocked, of which 37.44% of the unlocked tokens come from the Animecoin Foundation and AnimeDAO. Will this portion flow into the market? Why was such a high TGE unlock ratio designed?
Zagabond:
"As mentioned above, the 13% of tokens allocated to AnimeDAO will be used and deployed solely through the governance process, by decision of ANIME token holders. I cannot predict what initiatives AnimeDAO will propose and approve, but governance processes typically take time, and DAO spending of tokens often requires time before actually entering circulation (e.g., DAO grant-funded initiatives usually have milestones before distribution to grantees).
For the Animecoin Foundation, similar to the above, in addition to funding startup operations (i.e., supporting the various service providers and partners required for any token launch), the foundation-managed ecosystem development grants may also have milestones attached, requiring time before actually entering circulation."
TechFlow: In March 2024, the Arbitrum Foundation announced a collaboration with Azuki to create AnimeChain. What is the relationship between Azuki NFTs, AnimeChain, and Animecoin?
Zagabond:
First, it's important to clarify that AnimeChain was not created by the Arbitrum Foundation or Azuki. The Animecoin Foundation is the entity that manages Animecoin and is leading the development of AnimeChain.
Azuki is a core contributor to the Animecoin Foundation, supporting its mission to manage and grow the Animecoin ecosystem.
TechFlow: After the token launch, where will you and the Animecoin Foundation focus your efforts and resources, and what are the major strategic plans?
Zagabond:
"I cannot speak on behalf of the Animecoin Foundation regarding the specific allocation of their resources, but their sole mission is to support the development of the Animecoin ecosystem, and they have their own team and service providers to help achieve that goal.
As for Azuki, our primary focus will be on executing the full-stack anime strategy mentioned earlier."
On the Future of NFTs
TechFlow: NFTs have experienced a boom and bust cycle, evolving from simple PFPs and social currencies to now being tethered to a specific blockchain or project, with many NFT projects issuing their own tokens, seemingly becoming subservient to Tokens. What do you think the future development trend of NFTs will be?
Zagabond:
"NFTs can be many different things. In fact, I don't really like to think of 'NFTs' as a single category, because the use cases for NFTs can be very diverse. Nonetheless, it's clear that NFTs are one of the best tools for building communities, and they will continue to exist."
TechFlow: As a global project, how does Azuki and Animecoin balance the needs of users in different regions? What is the development strategy for the Asian market in particular?
Zagabond:
"The Asia-Pacific region is extremely important for both Azuki and Animecoin. Given that Azuki's art style is rooted in Japanese anime, we've maintained a strong connection to the Asia-Pacific market.
We are investing resources to establish our presence in the Asia-Pacific region, including building a world-class business development team in Japan to penetrate the anime industry."
TechFlow: Finally, what would you like to say to the Azuki community members?
Zagabond:
"The power of Azuki comes from our passion and creativity, which are the keys to our success. We've seen these values strongly embodied in our community, and we're grateful for their support. Anyone who joins the garden can attest to how unique our culture is. I believe we've built something very special here, and my goal is to lead us towards mainstream Web2 adoption, representing Web3 in the right way. We're on our way."