Recent high-financing projects have been launching tokens, including Solv, Berachain, Solayer, and B3. Due to the overall poor sentiment towards Altcoins recently, the performance of new tokens on most exchanges has not been as expected. Can the Story Protocol, which is backed by well-known investment institutions like a16z and Polychain, break the deadlock?

What is Story?

Story Protocol is a Layer 1 blockchain specifically designed for intellectual property (IP). Its main idea is to use blockchain technology to digitize, record on-chain, and automate the management of intellectual property. Specifically:

• IP asset digitization: Each IP is represented by an NFT that conforms to the ERC-721 standard, ensuring the uniqueness and immutability of each IP. Meanwhile, the Token Bound Account (TBA) based on the ERC-6551 standard is used as a dedicated IP account to store metadata, licensing information, and royalty records related to the IP.

• Modular design: Story Protocol has established multiple functional modules, including authorization, royalty, dispute resolution, and grouping modules, allowing the authorization, revenue distribution, and dispute resolution of IP to be automatically executed through smart contracts.

• AI agents and trading market: Its proprietary Agent TCP/IP protocol allows AI agents to interact with each other and trade IP assets, such as training data and creative styles, further promoting the financialization and marketization of IP.

Story Protocol is not just an ordinary IP blockchain. Its innovation lies in the integration with AI agents:

• ATCP/IP protocol: Endowing AI agents with legal personality and establishing a decentralized IP trading process, from request, term formulation to payment and delivery, which can be automated.

• AI agent application cases: Whether it's AI artists (like Zerebro), virtual idols (like Luna), or crypto market analysts (like AIXBT), they can all achieve autonomous collaboration and efficient IP transactions through Story.

IP Token Economy & Valuation

The core functions of $IP

• Staking: Users can stake $IP to participate in the PoS consensus, ensuring network security and stability.

• Transaction Gas: $IP serves as the network's Gas token, used to pay various transaction fees (such as authorization fees and royalty distributions), and a portion of $IP will be burned in each transaction, which may lead to deflation in certain cases.

• Ecosystem Governance: $IP holders participate in ecosystem governance and decide the future development direction.

$IP distribution structure

• 38.4% for the ecosystem and community: This part will support community building, incentive programs, and the promotion of ecosystem projects.

• 10% for initial incentives: Used to reward early actual participants and users of the ecosystem.

• 10% allocated to the Foundation: To support the long-term development of the project, research, and ecosystem resource reserves.

• 21.6% for early backers: To reward early investors and risk takers.

• 20% for core contributors: To reward the core team and those who have made significant contributions to the project.

In addition, the initial supply of $IP is set at 1 billion, of which only 25% will be unlocked initially, and the remaining part will be gradually released according to a 48-month unlocking plan.

According to Rootdata, the latest valuation of Story Protocol is $2.25 billion FDV, with a total supply of 1 billion tokens and a single token price of $2.25, ranking around 68th.

Calculated at a price of $2.25 and an initial 25% circulating supply, the market capitalization would be around $562.5 million, ranking 143rd. The current off-exchange price is around $3.5, and it will be crucial to observe whether it falls below $2.25 after listing.

Ecosystem Project Overview

The Story Protocol ecosystem is extremely rich, covering multiple areas from AI/AIGC, DeFi/IPFi, Metaverse and GameFi, RWA (Real-World Assets), social applications to infrastructure. According to various reference materials, here is a brief introduction to some of the major ecosystem projects:

• AI / AIGC Field

  • Stability AI: A well-known generative AI model developer, supporting image and media generation.

  • Flock.io: A decentralized AI training platform based on federated learning.

  • Dria: A decentralized multi-agent network that can convert idle computing power to generate synthetic data.

  • Ritual: Dedicated to integrating AI into blockchain and maintaining the ownership of model developers.

  • Holoworld: A multi-modal AI agent launch platform that supports text and voice interaction.

  • Mahojin.ai: A search-based generative AI platform that combines Story's IP library to provide more creative inspiration.

  • MyShell, Poster, SoloAI: Exploring no-code AI application building, on-chain sticker creation, and music creation, respectively.

  • BlockBook, Sekai, PlayArts, Morphic, and others are also leveraging Story's IP mechanism to empower creators in their respective fields.

• DeFi / IPFi Field

  • Mycelium Network: Providing cross-chain IP asset management and trading infrastructure.

  • 1Combo, PIPERX, Unleash Protocol: Establishing decentralized IP trading and licensing platforms.

  • Verio: Launching the world's first IP verification service, supporting IP liquidity staking.

  • Color Marketplace, Storight, Story Hunt, and other platforms focus on IP asset trading and liquidity provision.

• Metaverse and GameFi Field

  • Emergence, EON RIFT, Gomble Games: Constructing digital universes based on Story, combining elements of science fiction, comics, and games.

  • PunkgaMe, Globkins, Jutsu World, Infinite Seas, Pixelmon, and other projects are exploring IP applications in the fields of comics, card games, and virtual transactions.

• RWA Field

  • Aria: Using the Story protocol to tokenize assets like music, achieving asset financialization.

  • Zeal, Rightsfully, Singular, Loudr, and others are dedicated to putting traditional cultural, film, and music assets on-chain to protect the rights of creators.

• Social and Infrastructure Field

  • Koniverse, orb.club, Spotlight Protocol, Magma, and other applications support social interaction and content sharing, further promoting the widespread circulation of IP.

  • LayerZero, Goldsky, Stakeme, Pimlico.eth, Privy, Blockdaemon, RedStone, Dynamic, Kaito, and others constitute the complete cross-chain, data indexing, authentication, and security infrastructure in the Story ecosystem.