DATA, the a16z crypto-backed startup formerly known as Story Protocol, plans to retire its blockchain and move to Sui after securing a $30 million investment from Sui Foundation. CEO Andrea Muttoni said on October 21 that the migration will allow the company to concentrate on verifying the origins and usage rights of AI training data.
Key Takeaways
- Sui Foundation’s $30 million investment will make it DATA Network’s largest institutional holder.
- DATA plans a one-to-one token migration, keeping its current blockchain running until the transition is complete.
- The company is prioritizing Trace, its AI data registry, but has not disclosed how many records have generated licensing revenue.
Table of Contents
- DATA Sui migration shifts resources toward Trace
- Token transfer remains ahead
- A narrower business after broad licensing ambitions
- Registry activity is not the same as sales
- Storage and access tools could expand verification
DATA Sui migration shifts resources toward Trace
The decision follows DATA’s June rebrand and retreat from a broad effort to bring intellectual property licensing onto a blockchain. Rather than maintain its own network alongside its main product, the company now intends to focus on Trace, a registry for AI training data.
Operating a blockchain requires spending on engineers, validators, audits and infrastructure providers. Muttoni said the team questioned whether that work still made sense when much of its activity centered on the registry.
Sui Foundation will become DATA Network’s largest institutional holder through the investment. Muttoni described the foundation’s approach to product planning as hands-off. Further financial terms were not disclosed.
Token transfer remains ahead
DATA’s existing blockchain will remain operational until the migration is complete. The company plans to transfer its existing $DATA token to Sui on a one-to-one basis.
Token holders will retain their rights and existing vesting schedules under the announced plan. The blockchain shutdown and token migration have not yet been completed.
A narrower business after broad licensing ambitions
Founded in Bellevue, Washington, in 2022, the startup initially sought to let owners register intellectual property and set licensing terms across areas including music, patents and trademarks. Muttoni said established industry systems and limited interest from large rights holders made that approach difficult.
The company had raised $140 million and built its own blockchain before narrowing its focus. Muttoni did not disclose how much of that funding remains, but said existing investors, including a16z crypto, are still involved.
Experience with Poseidon, an AI data company incubated by the Story team, helped identify the more specific problem. Muttoni said vendors offered supposedly exclusive datasets that were available elsewhere; in one instance, the team was offered its own dataset.
Registry activity is not the same as sales
Trace records where training data originated, who contributed it and what rights buyers have to use it. For files submitted through participating marketplaces, its records can include submission timing, contributor consent terms, and subsequent licensing or payment events.
Muttoni said partner marketplace Kled accounts for much of the activity, adding between 3 million and 4 million contributions daily, including older records being brought onto Trace.
Those figures measure registration activity rather than completed sales. DATA did not disclose how many records have produced licensing revenue. Its current aim is to provide verifiable records for buyers and sellers, rather than compete with data marketplaces.
Storage and access tools could expand verification
Trace currently records information about files without storing the files themselves. Muttoni pointed to Sui ecosystem tools Walrus and Seal as resources for the company’s next steps.
Walrus could hold original files, allowing buyers to compare delivered data against the initial submission. Seal could encrypt those files and limit access to authorized buyers. These capabilities were described as reasons for choosing Sui, not as completed additions to Trace.
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