Mugafi, an AI-focused platform for entertainment intellectual property (IP), has partnered with Avalanche to bring films, anime, music, and other media onchain through tokenization. This initiative is designed to provide creators with a direct pathway to raise funds and distribute their work without the need for numerous intermediaries.
According to Mugafi, its internal AI models are trained on a diverse range of scripts and story patterns. These tools are utilized to assess the strength of a project before it is put onchain for funding. The new endeavor will leverage Mugafi’s existing library, as well as upcoming titles.
Mugafi and Avalanche Plan for Large-Scale Funding
Mugafi and Avalanche intend to fund over $10 million in entertainment IP in the immediate future. Both companies have stated a long-term target that could eventually surpass $1 billion annually. Avalanche views this plan as an opportunity to demonstrate its system's capability in handling substantial sets of real-world assets, ensuring comprehensive tracking of financial flows and project progress.
Established in India in 2020, Mugafi has garnered support from prominent entertainment and technology investors, including Nexus VP, HashedEM, Netflix, Amazon, and Panorama Studios. Its 2025 release, Kuberaa, achieved $35 million at the box office and was later made available to audiences via Amazon Prime Video.
The announcement indicates that this partnership will create new employment opportunities in fields such as AI, production, blockchain operations, and compliance. Mugafi estimates that over 1500 work opportunities for creators and studios could be generated across India, North America, Japan, and Korea.
Web3 Growth in Film and Media
The trend toward onchain management of entertainment IP has been steadily increasing for several years. Numerous companies are actively experimenting with tokenization and rights management solutions utilizing Web3 tools, as creators increasingly seek clearer ownership records and more efficient distribution channels.
In September, Animoca Brands collaborated with Ibex Japan, the corporate innovation division of Antler, to establish a Web3 entertainment fund. The objective of this fund is to bring more of Japan's anime and manga IP onto the blockchain, aiming to re-engage interest in a catalog that many investors believe has been underutilized.
PIP Labs is another notable entity emerging in this sector. The company developed Story Protocol, a layer 1 blockchain specifically designed for the recording and management of IP onchain. Founded in 2022 by Jason Zhao, a former product manager at Google DeepMind, the system empowers creators to tokenize their work and define the terms under which it can be utilized or adapted.
In August 2024, PIP Labs successfully raised $80 million in a Series B funding round, led by a16z Crypto and Polychain Capital, to further develop its project.