With $130 million in funding, what makes Story so appealing that it aims to disrupt the trillion-dollar IP market?
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With $130 million in funding, what makes Story so appealing that it aims to disrupt the trillion-dollar IP market?
Why has Story gained favor with numerous investment institutions, and can it solve the industry's IP issues?
Navigating Web3 tides with focused insightsAuthor: Blockchain Knight
The box office revenue for the film "Ne Zha: The Devil Boy Causes Havoc in the Sea" has surpassed 10 billion, making the "Ne Zha" IP go viral beyond its original audience. However, leveraging this breakout moment and maximizing the commercial value of the IP presents another challenge. While blockchain-enabled intellectual property (IP) has been discussed for years, solving this complex issue has become a pursuit for many entrepreneurs.
As an innovator in this space, Story Protocol—a project aiming to disrupt the trillion-dollar IP industry—has drawn significant attention. It has raised over $130 million in total funding, with a16z leading all three funding rounds consecutively, achieving a current valuation of $2.25 billion, and forming partnerships with more than 100 ecosystem projects. So what makes Story Protocol, now listed on major exchanges, so appealing? Why do top investment firms favor it? And can it truly solve the challenges facing the IP industry? Below we break it down.
1. What is Story Protocol?
Story Protocol is a Layer1 blockchain specifically designed for intellectual property (IP). It provides a transparent and programmable global IP repository, allowing creators to register their intellectual property on the blockchain and define usage rules.
Core features include:
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IP Registration: Supports registration of various forms of IP including images, music, and AI training data;
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Programmable Usage Terms: Creators can set conditions for IP use, such as royalty splits or restrictions on derivative works;
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On-chain and Off-chain Connectivity: Bridges intellectual property between blockchain systems and real-world legal frameworks through on-chain protocols and off-chain legal contracts (programmable IP licenses).
2. What Problems Does Story Protocol Solve?
It primarily addresses the following pain points in traditional IP management:
1. Creator Rights Protection: Ensures original works are accurately attributed, prevents misuse or infringement, automatically tracks derivative works, and enables creators to earn commercial revenue.
2. Fair Revenue Distribution: Through modular tools (e.g., licensing modules, royalty modules), it establishes transparent revenue-sharing mechanisms, enabling creators to receive fair compensation while sharing openly.
3. Reduced IP Management Complexity: Leverages blockchain technology to simplify IP management processes, lower trust costs, and automate enforcement of usage terms via smart contracts, reducing manual intervention.
4. Encouraging Collaboration and Innovation: Offers an open ecosystem where creators can freely create, share, and generate derivative content under clear rules.
3. Who Is Behind Story Protocol?
Co-founder and CEO: S.Y. Lee (Seung Yoon Lee)
Former founder and CEO of content platform Radish, which was acquired by South Korean tech giant Kakao for $440 million in 2021. During his tenure as Kakao’s Global Strategy Officer, he led global investments and M&A activities, including the acquisition of Wuxiaworld, Asia's largest English-language fantasy fiction platform. He also served as a venture partner at Hashed, South Korea’s leading blockchain fund, investing in Web3 projects.
Co-founder: Jason Levy
Graduated from the University of Southern California, worked in Apple’s finance department for five years, later earned an MBA from Stanford University, and subsequently worked at Episode, bringing extensive experience in technology and product development.
Co-founder: Jason Zhao
Holds degrees in Philosophy and Computer Science from Stanford University, formerly served as a product manager on Google’s DeepMind project, with strong interdisciplinary and AI expertise.
Marketing Lead: Emma Joelle Johnson
Graduate of King’s College London. Formerly served as Marketing Director at NFT art platform SuperRare, specializing in community building and brand promotion.
4. Story Protocol Funding History
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May 17, 2023: Raised $29.3 million from investors including a16z, Hashed, dao5, Samsung Next, Foresight Ventures, Mirana Ventures, Berggruen Holdings, and SLVC.
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September 6, 2023: Series A round raised $25 million from a16z, Hashed, Samsung Next, Foresight Ventures, dao5, Alliance DAO, Mirana Ventures, Endeavor Capital, Insignia Ventures Partners, 11:11 Media, Roham Gharegozlou, Balaji Srinivasan, Charlie Songhurst, David Lee, and Nicolas Berggruen.
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August 21, 2024: Series B round raised $80 million at a $2.25 billion valuation, with participation from a16z, Polychain, Cozomo de Medici, Adrian Cheng, and Scott Trowbridge.
5. Story Protocol Token
$IP has a total supply of 1 billion tokens, with 25% initially unlocked. 58.4% will be allocated to the community, covering ecosystem and community initiatives, foundation, and initial incentives.
Detailed allocation:
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Ecosystem and Community: 38.4%
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Initial Incentives: 10%
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Foundation: 10%
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Early Investors: 21.6%
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Early Contributors: 20%
Unlock schedule:
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Singularity Phase: Users can stake or delegate tokens but do not earn rewards (within 42 days after mainnet launch, before March 2)
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Big Bang Event: Scheduled after March 2, when all participants begin earning staking rewards simultaneously
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Vesting: A portion of $IP is locked, with initial unlocked supply at 25%
Token utilities:
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Staking: Validators stake $IP to participate in consensus; staking rewards distributed after the "Big Bang" event
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Governance: Token holders have governance rights
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Transaction Fees: $IP serves as the gas token for all on-chain interactions
Value capture mechanisms:
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Burn mechanism (token destruction)
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Other mechanisms:
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Anti-Sybil measures: Designed to prevent fake accounts or bot farms from participating to claim rewards or manipulate the system
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Incentive programs: Such as the Odyssey badge campaign
6. Story Protocol Ecosystem Development
Partnerships: Over 100 partners are developing applications on its platform, including fashion design by Ablo, Japanese manga by Sekai, and digital art collaboration by Magma.
User engagement: The platform has seen substantial user participation, with over 20 million addressable IP registrations and initiatives like the Odyssey badge program, which involves nearly 175,000 wallets holding at least one badge. Twitter followers approach 700,000, Discord users exceed 100,000, and Telegram users surpass 320,000.
Ecosystem status: Transitioning from the Odyssey testnet to the Aeneid testnet, Story Protocol is preparing for public mainnet launch, expected to bring further growth and stability to its ecosystem.
7. Summary
Overall, Story Protocol presents an innovative narrative as the first programmable on-chain IP protocol, using smart contracts to solve key issues around ownership verification, collaboration, and revenue distribution, targeting a trillion-dollar IP market. The team consists largely of professionals from well-known companies, with founders having investment backgrounds and technical members from DeepMind, giving it AI expertise. Its funding is solid, backed by three consecutive lead investments from a16z, along with support from top-tier Korean investors Hashed and Samsung Next. The ecosystem is already gaining momentum, with 100 partnered projects and over 20 million registered IPs. It has launched an experimental Agent TCP/IP framework that will enable AI agents to trade intellectual property, indicating strong future potential.
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