Introduction

Story Network is a purpose-built Layer 1 blockchain designed to efficiently tokenize and manage intellectual property (IP) assets. Launched in 2025, it addresses the complexities of IP rights in the digital age, especially with the rise of artificial intelligence (AI) in content creation. By integrating a graph-like data structure into its execution layer, Story Network enables fast and cost-effective handling of complex IP relationships. This architecture supports permissionless licensing, automated royalty payments, and secure IP registration.

What is Story Network (IP)?

Story Network is a blockchain infrastructure designed for managing intellectual property (IP) assets in a decentralized environment. It provides a system where creators, businesses, and developers can register, authenticate, and monetize their IPs while maintaining transparency and security. The platform supports smart contracts that automate licensing agreements, enforce royalty payments, and verify ownership records.

The network is built to be Ethereum Virtual Machine (EVM) equivalent, meaning existing Ethereum-based smart contracts can be deployed on Story Network without requiring modifications. Story Network’s structure introduces a graph-based model that maps complex relationships between IP assets. This approach enables automated royalty distribution, permissionless licensing, and ownership verification. It is designed to meet the needs of industries such as entertainment, artificial intelligence, technology, and digital media, where IP protection and monetization are priorities.

The network operates on a Proof-of-Stake (PoS) consensus mechanism, requiring validators to stake IP tokens to participate in transaction processing and network security. The native IP token is used for transaction fees, validator staking, and governance participation. The total supply is capped at 1 billion tokens, distributed among ecosystem development, initial incentives, the Story Foundation, early backers, and contributors.

History, Team and Backers

Story Network was co-founded by Jason Zhao, Seung Yoon Lee, and Jason Levy, bringing together expertise in cryptocurrency, intellectual property, and artificial intelligence. Jason Zhao has a background in blockchain infrastructure, while Seung Yoon Lee has experience in technology and content platforms. Jason Levy specializes in AI-driven applications.

Since its inception in 2023, Story Network has secured significant financial backing through multiple funding rounds. The project initially raised $29.3 million in a seed round led by a16z Crypto, which recognized the potential of a decentralized IP management system.

As the project gained traction, a16z Crypto continued to back Story Network in its Series A round, contributing to a $25 million investment. In August 2024, Story Network completed its Series B round, raising $80 million from a group of high-profile investors, including Polychain, Stability AI’s Vice President Scott Trowbridge, K11 Founder Adrian Cheng, and digital art collector Cozomo de’ Medici.

With over $134 million raised in total, the network is now focused on scaling its ecosystem, attracting developers, and establishing partnerships with content creators and businesses looking to leverage blockchain for IP protection and monetization.

Story Network as a Layer 1

Story Network is a Layer 1 blockchain designed for managing and monetizing intellectual property (IP) in a decentralized environment. It integrates features from the Ethereum Virtual Machine (EVM) and the Cosmos SDK, allowing seamless smart contract deployment while optimizing for complex IP data structures. The network is fully EVM-equivalent, ensuring compatibility with existing decentralized applications (dApps) without requiring modifications. It also incorporates execution layer optimizations that efficiently handle intricate data structures, particularly IP-related graphs. These optimizations improve transaction speed and reduce costs, making managing licensing, royalties, and ownership verification on-chain easier.

The network’s consensus mechanism is built on the CometBFT stack, a component of the Cosmos SDK. This structure provides fast finality and low transaction costs, which are crucial for scalability and usability. The network architecture allows for dynamic workload distribution by enabling automatic blockchain splitting and merging, ensuring consistent performance regardless of user demand. These features collectively support a system where intellectual property can be tokenized, transferred, and monetized with minimal friction.

Story Network Ecosystem

Story Network supports an ecosystem of projects that leverage its blockchain infrastructure for IP management, digital content creation, and financial applications. One of its key areas of focus is artificial intelligence-generated content (AIGC), where projects integrate AI with blockchain technology to enable automated content generation and rights management. The ecosystem also includes financial applications related to IP monetization, such as decentralized finance (DeFi) solutions that allow intellectual property to be used as collateral for loans or traded as digital assets.

The most known projects within the Story Network ecosystem include:​

• Playartsdotai: A content creation and NFT minting platform that empowers artists to tokenize their work and engage with a global audience.
• Styreal: A Web3 streaming platform offering decentralized content distribution, enabling creators to maintain control over their IP while reaching viewers directly.
• BlockBook: A collaborative IP platform that facilitates joint creation and management of intellectual property, streamlining processes for co-authors and partners.
• Thinkin: A Web3 SocialFi platform on the Algorand blockchain that integrates social networking with decentralized finance, providing new avenues for IP monetization.
• Mycelium Network: An IP launchpad that supports creators in bringing their tokenized intellectual property to market, offering resources and guidance throughout the process.​
• PiperX: A native decentralized exchange (DEX) on IP networks, facilitating the trading of tokenized IP assets within the Story ecosystem.

Story Network’s Main Features

Story Network Bridge

The Story Network bridge facilitates interoperability between blockchain ecosystems by enabling asset transfers across networks. Intellectual property assets registered on Story Network can move between Ethereum and Binance Smart Chain chains. The bridge maintains verifiable ownership records and ensures that tokenized IP remains accessible beyond a single blockchain.

The bridge operates through a locking and minting mechanism. Assets sent from Story Network are locked in a smart contract, and a corresponding amount is minted on the destination chain. This prevents duplication and maintains supply integrity. Users can transfer assets securely without relying on third-party intermediaries.

Validators confirm the validity of cross-chain transfers. They verify transactions and ensure that assets are locked or released according to protocol rules. The bridge’s security model prevents double spending and unauthorized minting by requiring consensus among multiple validators before processing a transfer.

Developers and users benefit from cross-chain functionality by integrating Story Network’s IP-based assets with external platforms. Tokenized intellectual property can interact with decentralized finance (DeFi) applications, NFT marketplaces, and other blockchain-based services.

Staking on Story Network

Story Network’s staking mechanism secures the blockchain and incentivizes network participation. Validators and delegators stake the IP token to support transaction validation and governance. Validators must lock a minimum of tokens to process transactions and secure the network. Staking rewards are distributed based on participation.

Validators play a role in maintaining network integrity. The protocol selects validators through a randomized process that considers their staked amount while ensuring decentralization. If validators act dishonestly, they risk losing a portion of their staked tokens through slashing. Delegators can stake their tokens with validators and share in the staking rewards.

The network adjusts staking rewards according to the total amount staked. A structured issuance schedule maintains economic balance by controlling inflation. Participants receive rewards in IP tokens, which can be restaked or used for network activities.

Staking also grants governance rights. Token holders who stake their assets can vote on protocol updates and network policies. Governance proposals cover reward distribution, network upgrades, and funding allocations for ecosystem development.

Story Network Faucet

The Story Network faucet distributes small amounts of IP tokens for testing and interaction. It provides an entry point for developers, content creators, and users exploring the platform. The faucet makes it possible to interact with the blockchain without requiring an initial investment.

Users request tokens from the faucet through verification or network-related tasks. The system imposes limits on how often tokens can be claimed to prevent abuse. The faucet supports development by providing tokens for testing smart contracts, licensing agreements, and royalty automation. Developers can deploy and interact with test contracts without financial risk. This allows applications to be refined before launching on the mainnet.

The faucet is also used as an engagement tool. Users participating in governance, verifying IP claims, or contributing to the ecosystem may receive additional faucet rewards.

AI Agents

Story Network uses AI-driven agents to automate intellectual property transactions. These agents execute smart contracts that manage licensing, content authentication, and royalty distribution. The automation reduces reliance on intermediaries and enforces IP ownership transparently.

AI agents operate under the Agent Transaction Control Protocol for Intellectual Property (Agent TCP/IP). This framework allows them to negotiate and execute licensing agreements based on predefined rules. Automated licensing ensures that royalties are distributed immediately when digital content is accessed.

The system processes high-frequency transactions without manual oversight. AI agents authenticate content, verify ownership records, and execute royalty payments. This structure reduces the administrative workload for creators and simplifies licensing for buyers.

Predictive analytics optimize licensing terms based on market demand. AI models assess trends and adjust pricing dynamically. The integration of AI enhances Story Network’s efficiency by automating processes that would otherwise require legal and administrative intervention.

Story Network (IP)’s Technical Architecture

Proof of Creativity Protocol

The Proof-of-Creativity Protocol operates through smart contracts deployed on the Story Network, enabling users to seamlessly bring their IP onto the blockchain. Creators can mint their IP as ERC-721 non-fungible tokens (NFTs), representing ownership of their creative works. These NFTs are then registered through the IP Asset Registry, which deploys an IP Account smart contract for each asset. The IP Account serves as the core identity for the IP asset, storing associated data such as licenses and royalties. This structure allows for programmable IP management, where various modules can interact with the IP Account to facilitate licensing, revenue sharing, and the creation of derivative works. By automating these processes, the protocol reduces administrative overhead and ensures that creators retain control over their IP while enabling new opportunities for collaboration and monetization.

Execution Layer

Story Network integrates a multi-core execution layer designed to process complex intellectual property (IP) data structures efficiently. The primary execution core maintains Ethereum Virtual Machine (EVM) compatibility, allowing developers to deploy Solidity-based smart contracts without modifications. Alongside this, specialized execution cores handle IP-related tasks, including automated royalty calculations, content attribution, and licensing validation.

The network employs a graph-based execution model, enabling efficient traversal of IP relationships. This approach optimizes the processing of interconnected IP assets, ensuring fast and cost-effective operations. Smart contracts built on Story Network can reference and interact with multiple assets within a single transaction, reducing redundant computations.

Precompiled functions are embedded into the execution layer to optimize common IP-related operations. These functions streamline processes such as verifying ownership, assigning licensing rights, and distributing royalties. By minimizing computational overhead, Story Network reduces gas fees and improves transaction speeds.

The execution layer separates transactional logic from validation, allowing scalable processing. High-demand applications can operate without causing congestion across the network. Developers can implement custom logic through smart contracts while leveraging the prebuilt infrastructure for managing IP-related functionalities.

Storage Layer

The storage layer records all registered intellectual property assets, transaction history, and licensing data. A distributed storage model ensures redundancy and prevents data loss. Metadata related to IP assets is stored efficiently, allowing for quick retrieval without burdening the blockchain state.

IP asset metadata includes ownership records, licensing terms, and transaction timestamps. This structured storage format enables smart contracts to reference relevant data without requiring extensive queries. Compression techniques are used to minimize storage costs while maintaining accessibility.

The network integrates off-chain storage solutions for large digital assets, linking blockchain records to decentralized file storage networks. To prevent unauthorized modifications, cryptographic hashing secures all stored data. Each IP record is associated with a unique identifier, ensuring that any changes to metadata are verifiable.

Consensus Mechanism

Story Network operates on a Proof-of-Stake (PoS) consensus model, where validators stake IP tokens to participate in block validation. The staking requirement discourages malicious behavior by ensuring that validators have a financial commitment to maintaining network security.

Validators process transactions, register new IP assets and execute smart contracts. The network employs a rotating validator selection model, ensuring decentralization by distributing validation responsibilities across multiple nodes.

The PoS framework quickly achieves transaction finality, reducing confirmation times for IP registrations and licensing agreements. The consensus model supports thousands of transactions per second, optimizing network efficiency. Slashing penalties apply to validators engaging in dishonest activities, such as submitting fraudulent transactions.

Programmable IP License (PIL)

Story Network introduces the Programmable IP License (PIL), a standardized smart contract framework for defining and enforcing IP agreements. The PIL ensures that digital licensing terms align with legal enforceability.

Licensing agreements under PIL can include conditional access, automated expiration, and revenue-sharing mechanisms. This flexibility supports multiple licensing models, including pay-per-use, subscription-based access, and commercial resale.

The PIL framework clarifies legal by mapping blockchain-based agreements to real-world licensing requirements. Smart contract-enforced terms eliminate ambiguities and ensure compliance with predefined conditions.

Content creators and businesses can tokenize licensing rights, enabling fractional ownership and secondary market trading. This feature enhances liquidity for digital IP assets while maintaining verifiable ownership structures.

What is the IP Token?

IP Token Utility

The IP token is the utility asset of the Story Protocol, facilitating network security, transaction processing, governance, and intellectual property (IP) management. Validators stake IP tokens to participate in the Proof-of-Stake (PoS) consensus mechanism, ensuring transaction validation and network security.

All on-chain activities, including IP registration, licensing agreements, and ownership transfers, require transaction fees paid in IP tokens. The token economy includes a deflationary mechanism through token burning, staking rewards, and incentive programs designed to reward genuine users while preventing exploitation.

Holders can participate in governance by voting on protocol upgrades, funding allocations, and network changes. A fixed supply of 1 billion tokens is distributed among ecosystem development, incentives, the foundation, early backers, and contributors, with a structured vesting schedule.

Programmable IP Licenses (PILs) enable automated, enforceable IP transactions, streamlining licensing and royalty distribution. The token also supports AI-related IP, allowing developers to tokenize datasets and AI models for transparent ownership and monetization.

IP Supply and Allocation

The total supply of IP tokens is fixed at 1 billion. Upon launch, 25% of these tokens are unlocked and available for circulation. The distribution of the total token supply is as follows:

• Ecosystem & Community (38.4%): Allocated for grants, developer support, and marketing initiatives to foster ecosystem growth.
• Initial Incentives (10%): Designated for rewarding early adopters, users, and validators who contribute to the network’s initial traction.
• Foundation (10%): Reserved for covering operational costs and ensuring the long-term development of the platform.
• Early Backers (21.6%): Allotted to investors and advisors who provided early-stage funding and support.
• Core Contributors (20%): Set aside as compensation for developers, strategists, and other key team members instrumental in building the Story Network.

IP Vesting Schedule

The vesting schedule for the IP token follows a structured release plan over several years, ensuring a controlled distribution of tokens across different allocation categories. The timeline spans from February 2025 to February 2029, with gradual unlocks.

Story Network’s Economic Design

The economic framework of the Story Network is meticulously crafted to promote a sustainable and equitable ecosystem for IP management. The network ensures cohesive and efficient operations by integrating the IP token into various facets of the platform.

• Staking Mechanism: Validators are incentivized to stake IP tokens, securing the network and earning rewards in return. This mechanism fortifies the network’s security and encourages active participation from token holders.
• Transaction Fees: Utilizing IP tokens for transaction fees creates a consistent demand for the token, as users engage in IP registration and licensing activities. This demand supports the token’s value and ensures the network’s operational viability.
• Governance Participation: Empowering token holders with governance rights fosters a decentralized and community-driven development model. Stakeholders can propose and vote on changes, ensuring the platform evolves in line with the community’s needs and values.

Story Network Governance

Story Network employs a decentralized governance framework that allows $IP tokenholders to influence the platform’s development. Governance is structured around the Story Decentralized Autonomous Organization (DAO), which enables tokenholders to propose and vote on changes to the network. The DAO operates under a constitution outlining the rights and responsibilities of its members. The Story Foundation acts as an executing body, ensuring that approved governance decisions are implemented effectively.

The governance model is designed to maintain transparency while facilitating efficient decision-making. Tokenholders have the authority to submit and vote on Story Improvement Proposals (SIPs), which can address changes to the DAO constitution, modifications to tokenholder rights, and strategic grant allocations. This process ensures that all major network decisions undergo thorough review and community approval before implementation.

The Story Foundation plays an administrative role in supporting the DAO. It is responsible for implementing approved SIPs, distributing strategic grants, and overseeing the ecosystem’s development. The foundation also manages treasury funds to ensure the platform’s long-term sustainability. It works alongside the community to identify opportunities for network expansion, including funding projects that align with Story Network’s objectives.

A Security Council has been established to safeguard the network. This council consists of appointed members who monitor network activity, respond to security threats, and develop security policies. Its purpose is to ensure the platform remains secure while maintaining alignment with the governance principles outlined in the DAO’s constitution. The council operates with defined guidelines to prevent unauthorized actions and maintain system integrity.

Conclusion

Story Network provides a blockchain-based infrastructure for managing intellectual property with automated licensing, secure ownership verification, and decentralized governance. The network integrates Ethereum Virtual Machine compatibility, a Proof-of-Stake consensus mechanism, and a structured economic model based on the IP token.

Its architecture supports scalable execution of smart contracts, optimized data storage, and cross-chain interoperability. Through programmable IP licenses and AI-driven automation, Story Network enables efficient registration, monetization, and distribution of creative assets. Governance is maintained through a decentralized autonomous organization, allowing tokenholders to influence protocol updates and ecosystem development.