Layer 1 Story Blockchain Protocol has delayed the planned thaw of its $IP token by six months, opting to keep more of the supply locked for longer as debate intensifies over how crypto projects handle token releases.
In a statement, Story said the decision was part of a broader set of long-term measures aimed at strengthening alignment with its community and strengthening the economic foundations of the network, describing the delay as a way to introduce new liquidity more gradually alongside reduced emissions and broader participation.
“When we started Story, our mission was to build foundational infrastructure for programmable intellectual property,” Story said in a statement. “While this mission remains unchanged, our understanding of where the greatest traction forms and what long-term success requires has continued to evolve.”
The $IP token is currently trading between $1.45 and $1.50. That represents a decline of about 32% over the past 30 days, worse than the 22% drop in the CoinDesk 20 Index, underscoring the tough market conditions mentioned by the story.
According to the revised schedule, the first major release of the previously locked Team, Investor, and First Contributor tokens will be shifted from February 2026 to August 2026.
Story says the change does not affect the total supply of 1 billion tokens, individual allocations, or legal ownership, and only changes when locked tokens can enter circulation. The foundation added that an automated smart contract mechanism was introduced to enforce the updated blocking conditions, while emphasizing that it does not gain custody of wallets or the ability to move tokens.
Token unlocks are closely watched events in crypto markets because sudden increases in circulating supply can weigh on prices, and recent research has suggested that large releases often result in delayed selling pressure rather than immediate rebounds.
Analysts frequently point to so-called low float, highly diluted valuation launches, in which a small portion of tokens trade freely while most remain locked, as a source of volatility and investor distrust as vesting periods expire.
On-chain metrics compiled by DeFiLlama show that Story has had almost non-existent activity so far, with less than $100 in daily on-chain revenue, highlighting how the token’s $500 million valuation remains tied to future expectations rather than current cash flow.
Late last year, Story co-founder Jason Zhao announced he was stepping away from day-to-day operations to join a new AI company.
