AuguryMugafi and Avalanche Aim to Put 1,000+ Film and TV Properties Onchain — A New Class of Investable Media
This article was written by the Augury Times
Mugafi, an AI-powered studio and media platform, says it will team up with Avalanche (AVAX) to mint and manage more than 1,000 entertainment properties as onchain real-world assets. The announcement promises to turn movies, shows and other rights into tokenized pieces investors can buy, trade and earn royalties from — effectively treating entertainment intellectual property like a new type of financial asset on a blockchain.
Why this move matters right now
At first glance the headline is simple: large-scale content gets put on a fast blockchain. In practice the deal touches three huge trends at once — the search for new yield and assets by crypto investors, studios’ need for new financing options, and the push to make digital ownership more liquid. For AVAX, the immediate upside is clear: minting, trading and royalty flows mean more transactions and fees on its network. For Mugafi and rights-holders, tokenization could unlock upfront cash, wider distribution, and ongoing revenue streams tied directly to consumer demand.
The scale — more than 1,000 properties — is the boldest claim. If Mugafi actually brings even a fraction of those titles to market it could create meaningful supply for secondary markets and fresh demand for the tooling and rails that Avalanche provides. But scale also magnifies execution risk: clearing rights, standardizing assets, and building marketplaces are complicated and slow.
What tokenized entertainment means for investors and AVAX
For crypto investors, tokenized IP is interesting because it creates a new, tradeable income stream tied to concrete media performance rather than abstract protocol fees. A token that represents a slice of a film’s future revenue could pay holders a share of streaming, licensing and merchandise income — much like a digital royalty bond.
That structure can create liquidity where none existed: instead of waiting years for a film’s backend, investors can buy and sell fractional exposure on secondary markets. If the market works, price discovery will also give creators market signals about what audiences value.
For Avalanche (AVAX), the deal could deliver more onchain activity — minting, transfers, royalty settlements, and possibly cross-chain bridging. More activity typically means higher fee capture for the native token and stronger demand for network services like oracles and identity solutions. That makes the news broadly positive for AVAX holders, but not automatically transformational: the effect depends on user adoption, the volume of trades, and whether Mugafi builds liquidity or simply lists assets with low turnover.
How Mugafi will put IP onchain — standards, royalties and distribution
Mugafi’s plan centers on token standards and fractionalization. Instead of one-off non-fungible tokens (NFTs), the likely model is to mint standardized tokens that represent fractionalized ownership or revenue rights for each property. These tokens will need embedded metadata to link legal ownership, royalty splits, and usage rules — the part that turns a collectible into a securities-like revenue stream.
Operationally this requires custody and legal wrappers. Mugafi will have to record who owns what, route royalty payments to token holders, and manage digital rights metadata so platforms and distributors know how to use the work. Expect onchain smart contracts to automate revenue splits, and offchain systems to handle clearance and DRM. Bridges may be used to move assets in and out of Avalanche if partners run on different chains.
Distribution could come through specialized marketplaces or integrations with streaming platforms that honor the token metadata. Mugafi’s AI capabilities will likely be used to value, package and recommend tokens to investors and fans, speeding initial sales and secondary market discovery.
Legal and regulatory hurdles for tokenizing entertainment IP
This is the friction point where many tokenized real-world asset experiments stall. Tokens that represent a right to income look a lot like securities under U.S. and EU rules. That means Mugafi and its partners must decide whether to structure offerings as regulated securities, qualify exemptions, or risk enforcement action.
Rights clearance is equally thorny. Many films and shows carry layered rights — music licenses, actor contracts, territorial distribution deals — that must be cleared or remediated before revenue rights can be sold. Failing to clear rights can leave token holders with illusory claims.
Jurisdiction matters: laws on royalties, investor protections and token classification differ across the U.S., Europe and other markets. Evolving EU rules and U.S. enforcement priorities make this a moving target. In short, regulatory uncertainty is high and could throttle the pace of token sales or push Mugafi to prefer accredited or institutional buyers at launch.
How the Mugafi framework will fund and distribute media as real-world assets
Mugafi’s commercial model likely combines upfront financing for rights-holders, revenue-sharing for creators, and take-rates on primary and secondary market transactions. Rights-holders could receive a lump-sum payment in exchange for a share of future income that Mugafi tokenizes and sells; Mugafi would capture fees when tokens are minted and when they trade later.
For distribution, Mugafi could partner with marketplaces, streaming platforms, and institutional desks to seed liquidity. Strategic partnerships with studios, music labels, and distributors will be critical to reach the promised 1,000-plus properties quickly.
Precedents, market signals and what to watch next
There are already pilots that tokenize music royalties, film pre-sales and other creative assets. Results have been mixed: some projects show real secondary trading and yield, while others suffer from thin markets and unresolved legal claims. The Mugafi-Avalanche deal is notable because of its scale and because Avalanche offers fast settlement and low fees compared with some alternatives.
Key metrics for investors to watch: trading volume and turnover on the newly minted tokens, secondary market pricing relative to expected revenue, AVAX token flows tied to minting and fees, and the mix of institutional versus retail buyers. Regulatory milestones — any filings or guidance that clarify the securities status of these tokens — will also be decisive.
Bottom line: the partnership is a meaningful step toward making entertainment IP investable onchain. For AVAX holders, it’s a net positive possibility: more activity and use cases. For investors in the tokens themselves, the upside is real but paired with heavy legal and execution risk. Success will depend less on blockchain tech and more on rights clearance, market-making and clear regulatory choices.
Photo: Engin Akyurt / Pexels
Sources