AI-Focused Mugafi Joins Avalanche to Empower Creators with Tokenized Funding

Mugafi, an AI focused platform for entertainment IP, has joined with Avalanche to bring films, anime, music and other media onchain through tokenization. The move is designed to give creators a direct path to raise funds and distribute their work without relying on long chains of intermediaries.

According to Mugafi, its internal AI models are trained on a wide range of scripts and story patterns. These tools help check the strength of a project before it is placed onchain for funding. The new effort will draw from Mugafi’s current library along with upcoming titles.

Mugafi, Avalanche Plan for Large Scale Funding

Mugafi and Avalanche aim to fund more than $10 million in entertainment IP in the near term. Both companies say they have a long range target that could eventually pass $1 billion each year. Avalanche views the plan as a way to show that its system can handle large sets of real world assets, with full tracking of financial flows and project progress.

Founded in India in 2020, Mugafi has backing from major entertainment and tech investors such as Nexus VP, HashedEM, Netflix, Amazon and Panorama Studios. Its 2025 title Kuberaa brought in $35 million at the box office and later reached audiences through Amazon Prime Video.

The announcement states that the partnership will lead to new roles in AI, production, blockchain operations and compliance. Mugafi estimates that more than 1500 work opportunities for creators and studios could form across India, North America, Japan and Korea.

Web3 Growth in Film and Media

The shift toward onchain management of entertainment IP has been gaining speed for years. Several companies are testing tokenization and rights handling through Web3 tools as creators look for clearer ownership records and faster distribution routes.

In September, Animoca Brands joined with Ibex Japan, the corporate innovation arm of Antler, to build a Web3 entertainment fund aimed at bringing more of Japan’s anime and manga IP onchain. The plan seeks to draw new interest to a catalog that many investors say has been underused.

PIP Labs is another rising name in this space. The company created Story Protocol, a layer 1 blockchain for recording and managing IP onchain. Founded in 2022 by former Google DeepMind product manager Jason Zhao, the system gives creators a way to tokenize their work and set terms for how it can be used or adapted. 

In August 2024, PIP Labs raised $80 million in a Series B round led by a16z Crypto and Polychain Capital to advance the project.