Mugafi and Avalanche: Pioneering Entertainment IP Tokenization
Mugafi, an AI-driven platform for entertainment intellectual property (IP), has partnered with Avalanche to tokenize films, anime, music, and other media assets. This collaboration will enable creators to finance and distribute their projects directly on the blockchain, streamlining the traditional entertainment funding process.
Partnership Details and Objectives
The initiative will leverage Mugafi’s existing catalog and upcoming films. According to Mugafi, their AI systems, which are trained on a vast dataset of scripts and story structures, will assist in evaluating projects before they are brought on-chain for financing. Mugafi and Avalanche are initially planning to finance over $10 million in entertainment IP. Their ambitious long-term target is to exceed $1 billion in annual IP financing throughput, marking a significant shift in how entertainment projects are funded.
Avalanche's Role in Supporting On-Chain Financing
Avalanche emphasizes that this partnership demonstrates the capabilities of its network in supporting large-scale real-world asset issuance. The companies intend to utilize Avalanche’s infrastructure to fund, track, and distribute entertainment projects directly on the blockchain, providing greater transparency and efficiency.
Mugafi's Background and Investor Support
Mugafi, which was launched in India in 2020, has garnered support from various entertainment and venture investors, including Nexus VP, HashedEM, Netflix, Amazon, and Panorama Studios. Their 2025 release, Kuberaa, achieved $35 million in box office collections and was subsequently distributed via Amazon Prime Video, showcasing the platform's ability to deliver successful projects.
Job Creation and Industry Impact
The collaboration is projected to create new opportunities in fields such as AI, production, blockchain operations, and compliance. Mugafi anticipates generating over 1,500 opportunities for creators and studios across regions including India, North America, Japan, and Korea, fostering growth in the entertainment industry.
The Growing Trend of Entertainment IP Tokenization
The movement to bring entertainment IP on-chain has been gaining momentum in recent years, with both creators and platforms exploring the possibilities of tokenization and Web3 rights management. This partnership between Mugafi and Avalanche is a significant step forward in this evolving landscape.
Other Initiatives in the Web3 IP Space
In September, Animoca Brands partnered with Ibex Japan, the corporate innovation arm of Antler, to establish a Web3 entertainment fund focused on bringing Japanese anime and manga IP onto the blockchain. The objective is to unlock the potential value of Japan’s largely underutilized IP catalog.
PIP Labs has also emerged as a prominent 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. Founded in 2022 by Jason Zhao, a former Google DeepMind product manager, Story Protocol enables creators to tokenize their work, record IP on the blockchain, and define the terms for its usage, sharing, or adaptation. The framework aims to empower rights holders to maintain 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 further advance the development of Story Protocol.
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