Mugafi, an AI-driven platform focused on entertainment intellectual property (IP), has joined forces with Avalanche to tokenize films, anime, music, and other media assets, enabling creators to directly finance and distribute projects on-chain.
This initiative will utilize Mugafi’s catalog and upcoming films. The company claims that its AI systems, trained on thousands of scripts and narrative structures, assist in evaluating projects before they are brought on-chain for financing.
Mugafi and Avalanche aim to finance over $10 million in entertainment IP, with a long-term goal of exceeding $1 billion in annual IP financing throughput.
Avalanche indicated that the partnership seeks to showcase how its network can facilitate large-scale issuance of real-world assets. The collaboration intends to employ Avalanche’s infrastructure to fund, track, and distribute entertainment projects on-chain.
Mugafi, founded in 2020 in India, is supported by various entertainment and venture investors, such as Nexus VP, HashedEM, Netflix, Amazon, and Panorama Studios, among others. Its release in 2025, Kuberaa, achieved $35 million in box office revenue and was made available through Amazon Prime Video.
As per the announcement, this collaboration is expected to facilitate new roles in AI, production, blockchain operations, and compliance. Mugafi anticipates more than 1,500 opportunities for creators and studios across regions like India, North America, Japan, and Korea.
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Blockchain in entertainment and film
The movement to bring entertainment IP on-chain has been gaining traction for years among creators and platforms, with numerous projects delving into tokenization and Web3 rights management.
In September, Animoca Brands teamed up with Ibex Japan, the corporate innovation branch of Antler, to launch a Web3 entertainment fund aimed at bringing Japan’s anime and manga IP on-chain. This initiative seeks to unlock value from Japan’s largely untapped IP catalog.
PIP Labs has positioned itself as a significant player in the Web3 IP arena with the development of Story Protocol, a layer-1 blockchain designed to manage and program intellectual property on-chain.
Established in 2022 by former Google DeepMind product manager Jason Zhao, the project allows creators to tokenize their work, record IP on-chain, and determine the terms under which it can be utilized, shared, or adapted. This framework aims to empower rights holders to maintain control over their content and its downstream use.
In August 2024, PIP Labs secured $80 million in a Series B round led by a16z Crypto and Polychain Capital to further advance Story Protocol.
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