Mugafi, an AI-driven platform focused on entertainment intellectual property (IP), has teamed up with Avalanche to tokenize films, anime, music, and other media assets, enabling creators to finance and distribute their projects directly onchain.
This initiative will leverage Mugafi’s catalog and forthcoming films. The company claims its AI systems, trained on numerous scripts and story structures, assist in evaluating projects prior to their onchain financing.
Mugafi and Avalanche aim to finance over $10 million in entertainment IP, with a long-term goal of surpassing $1 billion in annual IP financing throughput.
Avalanche stated that the partnership seeks to showcase how its network can facilitate large-scale real-world asset issuance. The collaboration plans to utilize Avalanche’s infrastructure for funding, tracking, and distributing entertainment projects onchain.
Mugafi, founded in 2020 in India, is supported by various entertainment and venture investors, including Nexus VP, HashedEM, Netflix, Amazon, and Panorama Studios, among others. Its release in 2025, Kuberaa, achieved $35 million in box office revenue and was distributed through Amazon Prime Video.
As per the announcement, the partnership is anticipated to create new roles in AI, production, blockchain operations, and compliance. Mugafi expects to generate over 1,500 opportunities for creators and studios across regions, including India, North America, Japan, and Korea.
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Blockchain in entertainment and film
The movement to bring entertainment IP onchain has gained traction among creators and platforms, with numerous projects investigating tokenization and Web3 rights management.
In September, Animoca Brands partnered with Ibex Japan, the corporate innovation branch of Antler, to establish a Web3 entertainment fund aimed at transitioning Japan’s anime and manga IP onchain. This initiative seeks to unlock value from Japan’s largely untapped IP inventory.
PIP Labs has positioned itself as a prominent player in the Web3 IP sector with the launch of Story Protocol, a layer-1 blockchain dedicated to managing and programming intellectual property onchain.
Founded in 2022 by former Google DeepMind product manager Jason Zhao, this project allows creators to tokenize their work, document IP onchain, and establish the terms for its usage, sharing, or adaptation. The framework is designed to empower rights holders to retain control over their content and its downstream applications.
In August 2024, PIP Labs secured $80 million in a Series B funding round led by a16z Crypto and Polychain Capital to advance the Story Protocol.
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