Story is a sovereign layer-1 blockchain built using the Cosmos SDK and CometBFT consensus, with an added EVM execution — a custom Geth fork. This option allows full governance, optimal execution of intellectual property workflows, and a stake economy based on $IP.
Standard blockchain environments — even high-performance chains like Solana — struggle with modeling the recursive licensing structures that intellectual property ecosystems require, the team said. Story’s graph architecture was specifically created to manage the complex relationships among intellectual property assets.
Story Protocol is ambitious in its vision for a graph-based economy of intellectual property. However, it is also worth examining its decision to create a new layer-1, with its own token, instead of, for example, validium.
Some projects insist on a custom environment for execution, but only ascribe a L1 premium in their tokens. Why couldn’t Story have created this rollup and added a layer of intellectual property on top to make it more secure?
It grants Story more autonomy, but it comes at the price of a fragmented liquidity, developer mindshare, and security. Is it necessary to bootstrap another’staking economy’? Many application-specific chains struggled to prove their independence, beyond token incentives. Even Cosmos chains have begun to use Interchain security more, as they inherit Ethereum’s mature validator and deep liquidity.
What is the role of tokenomics and $IP?
A blog published today states that $IP has multiple important functions in the Story eco-system. Such functions include the following:
- Validators stake money to join the consensus.
- For all transactions on the chain, $IP must be used.
- Governance: Story Protocol token holders can influence the future by making governance decisions.
Story has designed $IP to be distributed and supplied in a way that prioritizes long-term participation by the community. A total of 1 billion $IP is available, and a 25% initial unlocking supply.
Each transaction can reduce the supply of $IP by a certain amount.
‘Fair Launch’ staking
Story’s stake mechanism prevents early rewards for insiders. This month is called the Februarischen Zeitraum. “Singularity Period,” The period during which the tokens are staked and delegated, but no rewards have been earned. After the “Big Bang” The rewards will be distributed to participants in the event that takes place on 2 March.
A public mainnet is expected to be launched along with an initial claim. Blockworks spokesperson said it is important to note that the staking reward for locked tokens can be restricted by a minimum six-month period.
“We will not allow locked tokens to sell staking rewards anytime soon, and we believe the community should have the ability to set up staking and receive rewards,” The team stated.
AI and IP
A fascinating prospect is the potential for intellectual property-based DeFi primitives — or IPFi. Unleash Verio Color and other teams are developing lending and borrowing infrastructure, marketplaces and restaking mechanisms for assets backed by intellectual property. Aria’s ability to secure real TVL in intellectual property assets, such as Justin Bieber’s Peaches is an interesting example. But the true test will be when mainnet goes public.
As of now, it is still a theoretical question whether intellectual assets could be used meaningfully as collateral in a way that goes beyond the Story Protocol. That said, LayerZero (LZ) integration means that some form of cross-chain composability will be possible from day one — an indicator that Story’s intellectual property-backed assets could plug into Ethereum-based DeFi protocols if liquidity and demand exists.
It is interesting to hear about a DeFi API that leverages LZRead. Story could become a RWA-like collateral for DeFi lenders if it can simplify intellectual property lending and make it as easy as USDC lending or wBTC. This is going to be an enormous task.
AI meets Intellectual Property
Story Protocol isn’t just about digitizing intellectual property — it’s building a blockchain-native economy for AI and creativity. Story Protocol positions itself as the fundamental layer of digital ownership by removing intermediaries and enabling automatic licensing.
“The easier you make it to register [intellectual property], the easier you make it to license [intellectual property], the easier you make it to transact on it — the more this turns from an oligarchy into a true marketplace,” Marcus Devrelius tweeted this.
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
