Karate Combat, the first sport fully governed by cryptocurrency, is advancing its blockchain strategy with the launch of “UP,” a Layer 2 blockchain platform built on Hedera.
Slated for release in Q1 2025, UP aims to broaden the league’s blockchain ecosystem by offering its software stack to a wide range of sports and entertainment platforms, as well as creating new revenue streams for token holders.
Blockchain Meets Combat Sports
Launched in 2021, Karate Combat’s Up Only Gaming software, a system that allows $KARATE token holders to predict fight outcomes for rewards, has amassed 100,000 users. Building on that success, Karate Combat is now licensing this platform for free to other sports leagues, esports, and even gambling platforms. The software stack, available across mobile and web apps, is designed to be easily customized and launched, making it an attractive option for organizations looking to tap into blockchain-based fan engagement.
This move positions Karate Combat as more than just a sport—it’s venturing into becoming a tech platform. Partners can adopt Karate Combat’s technology and even issue their own tokens, creating a decentralized ecosystem that mirrors Karate Combat’s own model.
A Token-Powered Ecosystem
Karate Combat plans to launch $UP, a new token associated with the UP platform in 2025, which will seed a grants program aimed at incentivizing early adopters. Up to 30% of $UP tokens will flow to $KARATE token stakers, aligning incentives across the ecosystem.
One of the key differentiators is Karate Combat’s decision to share its established user base with new partners. This move could accelerate adoption for smaller leagues or crypto projects that can leverage the community of 100,000 existing users.
To further cement its blockchain credentials, Karate Combat is introducing “H-Stack,” an open-source toolkit designed for rapid deployment of Layer 2 blockchains on Hedera. A portion of the total $UP token supply will be allocated to incentivize liquidity pools, decentralized borrowing, lending, and staking of Hedera’s native token, HBAR.
Strategic Partnership with The HBAR Foundation
The platform’s launch coincides with the renewal of Karate Combat’s three-year partnership with The HBAR Foundation, which has played a key role in funding Karate Combat’s blockchain development. David Cramer, COO of The HBAR Foundation, noted the league’s pioneering efforts in using blockchain to enhance fan engagement: “Karate Combat has set the bar high. Their vision has pushed the boundaries of what’s possible on-chain, and we’re thrilled to continue supporting them as they redefine how fans interact with sports.”
As Karate Combat pushes deeper into blockchain, its blend of sport and technology could signal a broader shift in how professional leagues leverage blockchain to engage with fans and open new avenues of revenue. With UP set to roll out next year, the league aims to expand beyond the world of combat sports and into a decentralized sports and entertainment ecosystem.