Layer 1 blockchain Story Protocol has postponed its planned unfreezing of its $IP token by six months, opting to keep a large portion of its supply locked up for a longer period of time, amid an intensifying debate over how crypto projects should manage token releases.
In a statement, Mr Storey said the decision was part of broader long-term measures aimed at strengthening community engagement and strengthening the network’s economic base, and described the postponement as a way to more gradually introduce new liquidity alongside emissions reductions and broader participation.
“When we launched Story, our mission was to build the foundational infrastructure for programmable intellectual property,” Story said in a statement. “While that mission remains the same, our understanding of where the strongest traction is forming and what is needed for long-term success continues to evolve.”
The $IP token is currently trading around $1.45 to $1.50. This is down about 32% over the past 30 days, worse than the 22% decline in the CoinDesk 20 index and underscoring the difficult market conditions that Storey mentioned.
Under the revised schedule, the first major release of tokens for previously locked teams, investors, and early contributors will move from February 2026 to August 2026.
According to the story, this change does not affect the total supply of 1 billion tokens, individual allocation, or legal ownership, but only changes when locked tokens enter circulation. The foundation added that an automated smart contract mechanism has been put in place to enforce the updated lockup conditions, but stressed that no wallet storage or token transfer functionality will be gained.
Token unlocking is a closely watched event in crypto markets as a sudden increase in circulating supply can put pressure on prices, and recent research suggests that large releases often lead to delayed selling pressure rather than an immediate rebound.
Analysts frequently point to launches with so-called low float and high fully diluted valuations. In this launch, while a small portion of the tokens are freely traded, most tokens remain locked, causing volatility and investor distrust when the vesting period ends.
The story has seen little activity so far, with daily on-chain revenue of less than $100, according to on-chain metrics compiled by DeFiLlama, highlighting how much of the token’s $500 million valuation is tied to future expectations rather than current cash flow.
Late last year, Story co-founder Jason Zhao announced he was stepping away from his day job to join a new AI venture.
