Mugafi, an AI-driven entertainment IP platform, has partnered with Avalanche to tokenize films, anime, music and other media assets, enabling creators to finance and distribute projects directly onchain. The initiative will draw from Mugafi’s existing catalog and upcoming releases, using Mugafi’s AI—trained on thousands of scripts and story structures—to evaluate projects before they are brought onchain for financing.
The partners plan to finance more than $10 million in entertainment IP initially, with a long-term target to exceed $1 billion in annual IP financing throughput. Avalanche said the collaboration aims to show how its network can support large-scale real-world asset issuance, using its infrastructure to fund, track and distribute entertainment projects onchain.
Mugafi, launched in 2020 in India, is backed by entertainment and venture investors including Nexus VP, HashedEM, Netflix, Amazon and Panorama Studios. Its 2025 release Kuberaa recorded $35 million at the box office and was distributed via Amazon Prime Video. The collaboration is expected to create roles across AI, production, blockchain operations and compliance, and Mugafi projects more than 1,500 creator and studio opportunities across regions including India, North America, Japan and Korea.
The move is part of a broader push to bring entertainment IP onchain, a trend that has gained traction among creators and platforms exploring tokenization and Web3 rights management. Recent initiatives include Animoca Brands partnering with Ibex Japan to launch a Web3 entertainment fund focused on bringing Japan’s anime and manga IP onchain, aiming to unlock value from Japan’s large IP catalog.
PIP Labs has emerged as a major Web3 IP player with Story Protocol, a layer-1 blockchain designed to manage and program intellectual property onchain. Founded in 2022 by former Google DeepMind product manager Jason Zhao, Story Protocol enables creators to tokenize work, record IP onchain, and set terms for use, sharing or adaptation, helping rights holders maintain control over downstream use. In August 2024, PIP Labs raised $80 million in a Series B led by a16z Crypto and Polychain Capital to advance Story Protocol.
