What is expected in the development of IP?
Story is speeding up its development with new AI-focused IP infrastructure and network improvements:
- IP Vaults & Confidential Data (Q4 2025) – Securely store sensitive IP assets
- Validator Expansion (Q1 2026) – Grow the number of network validators to 100+
- EVM Upgrades (Q4 2025) – Stay compatible with Ethereum’s latest features
- Active Research (2026) – Explore on-chain file storage and faster signature tech
Deep Dive
1. IP Vaults & Confidential Data (Q4 2025)
What it is:
IP Vaults will let creators attach encrypted files—like unreleased media or patent drafts—to their IP assets. Only verified license holders can access this data. This fits Story’s goal to become the go-to platform for AI licensing of real-world data (Story Network Update).
Why it matters:
This is great news for businesses and AI companies that need to keep their IP confidential. However, if the user experience isn’t simple enough for people new to crypto, adoption could be slower.
2. Validator Expansion (Q1 2026)
What it is:
Story plans to increase the number of validators—nodes that help secure the network—from 80 to over 100 by early 2026. The recent Polybius upgrade improved the network’s consensus system to support this growth (X post).
Why it matters:
More validators mean better security and decentralization. There might be a temporary slowdown in transaction speed during the upgrade, and success depends on attracting institutional participants.
3. EVM Upgrades (Q4 2025)
What it is:
Story will integrate Ethereum’s Pectra upgrade (including EIPs 7702 and 2537) to keep compatibility with Ethereum. This allows easier cross-chain IP licensing and helps developers build on Story using familiar tools (Story-Geth Cosmas Release).
Why it matters:
This strengthens Story’s ecosystem by making it easier to work with Ethereum-based apps and developer tools like OpenZeppelin.
4. Active Research (2026)
What it is:
Story is working with Stanford’s FDCI on new tech for storing large files directly on-chain (as an alternative to IPFS) and using BLS signatures to speed up network consensus. While there’s no set deadline, test networks are expected in the first half of 2026 (Technical Roadmap).
Why it matters:
This is a high-risk, high-reward area. Success could make Story a leader in decentralized AI data management, but delays could let competitors catch up.
Conclusion
Story’s roadmap balances near-term Ethereum compatibility (Q4 2025) with long-term investments in AI-ready IP infrastructure. The validator expansion and IP Vaults will be key tests for attracting enterprise users. With recent leadership changes, the big question is whether the team can keep its perfect uptime record while delivering these upgrades.
What updates are there in the IP code base?
Story Protocol’s latest software updates focus on improving scalability, compatibility with Ethereum, and security.
- Client Upgrades & Validator Expansion (August 19, 2025) – Better APIs, stronger security, and more validator spots.
- Ethereum Pectra Support (August 19, 2025) – Enhancements to work smoothly with Ethereum’s latest technology.
Deep Dive
1. Client Upgrades & Validator Expansion (August 19, 2025)
Overview: Story Protocol released three major updates—Virgil, Ovid, and Polybius—that improved how the network reaches agreement (consensus), made its APIs faster and more efficient, and strengthened node security. They also increased the number of validators (the network’s trusted participants who verify transactions) by 25%, from 64 to 80.
These changes speed up the process for registering and licensing intellectual property (IP) and make the network more resistant to attacks that try to take control by creating fake identities (Sybil attacks). Adding more validators helps make the network more decentralized, moving Story from a controlled (permissioned) system toward an open (permissionless) one.
What this means: This is good news for IP creators and businesses because transactions will be faster and more secure, improving overall user experience. More validators mean the network can handle growth as more people start using it.
(Source)
2. Ethereum Pectra Support (August 19, 2025)
Overview: The Cosmas update added support for Ethereum’s Pectra upgrade, which includes several technical improvements (EIPs 7702, 2537, 7623, 7685). This keeps Story compatible with Ethereum’s Virtual Machine (EVM), the technology that runs smart contracts, while making the execution layer more efficient.
This means developers can easily deploy Ethereum-based IP smart contracts on Story, and complex IP licensing operations will use less gas (transaction fees). Tools for transferring assets between Ethereum and Story are currently being tested.
What this means: In the short term, this update doesn’t drastically change things for IP users, but it’s a smart move for the future. Developers get more flexibility, though Story will depend somewhat on Ethereum’s development path.
(Source)
Conclusion
Story Protocol’s recent updates focus on scaling the network and aligning it with Ethereum, which is key to becoming a leading platform for programmable IP. Increasing the number of validators shows the network is growing stronger and more decentralized, while Ethereum compatibility ensures it can work smoothly with the largest smart contract ecosystem.
The big question is how these technical improvements will help Story gain real-world users as it competes with Ethereum-native IP projects.
Why did the price of IP fall?
Story Protocol (IP) dropped 4.27% in the last 24 hours, slightly underperforming the overall crypto market, which fell 4.11%. This decline comes after a strong 42% rally over the past week. Key reasons include traders cashing out profits, technical indicators showing the asset is overbought, and mixed feelings about recent leadership changes.
- Profit-taking after a big rally – IP’s price jumped 369% over the last 90 days, leading some investors to lock in gains.
- Overbought technical signals – The Relative Strength Index (RSI) hit 83, suggesting the asset might be due for a pullback.
- Leadership uncertainty – Co-founder Jason Zhao left in August, creating some doubts despite new management stepping in.
Deep Dive
1. Profit-Taking After a Big Rally (Bearish Factor)
What happened: IP’s price surged 42% in just one week and 369% over three months, pushing its market value to $4.28 billion. Such rapid growth often causes short-term traders to sell and take profits, especially when the broader market is facing challenges.
What this means: Traders are likely cashing out amid increased price swings. The 24-hour trading volume dropped slightly to $505 million, indicating less buying interest and a possible pause in momentum. Historically, assets that gain over 300% in 90 days often see a 15-20% price correction afterward (CoinMarketCap).
What to watch: The key support level is $12.67, based on the Fibonacci retracement (23.6%). If the price falls below this, it could test the next support at $11.29 (38.2%).
2. Overbought Technical Signals (Bearish Factor)
What happened: The 14-day RSI reached 83.26 on September 21, the highest since July 2025. Meanwhile, the MACD indicator shows that bullish momentum is slowing down.
What this means: An RSI above 70 usually signals that an asset is overbought and may face a price correction soon. The 7-day Simple Moving Average (SMA) at $10.92 is now acting as support. If the price closes below this, selling pressure could increase.
3. Leadership Changes Raise Questions (Mixed Impact)
What happened: Co-founder Jason Zhao left the project on August 16, leading to concerns about the project's future. Some critics called it a “soft rug pull,” though the new CEO, S.Y. Lee, has focused on continuing development (The Defiant).
What this means: While the team has launched an $82 million token buyback program with Heritage Distilling, Zhao’s departure has raised doubts about long-term plans. The protocol’s revenue remains very low—around $15 per day as of August 31—making some investors skeptical about its $8.2 billion fully diluted valuation (FDV) (@cryptothedoggy).
Conclusion
The recent drop in IP’s price is a natural result of profit-taking after a strong rally, combined with technical signals warning of a possible correction and lingering concerns about leadership stability. Key points to watch: Whether upcoming AI partnership announcements (like with Worldcoin) can boost confidence and offset worries about the low revenue model. Also, keep an eye on the $12.67 support level and any inflows from the Grayscale Story Trust for clues on the next price direction.
What could affect the price of IP?
Story's price is caught between strong institutional buying and concerns over leadership changes.
- Institutional Buyback Pressure – An $82 million token repurchase could reduce supply and support the price.
- Leadership Instability – The co-founder’s departure has raised fears of a “rug pull,” despite new governance measures.
- Adoption vs Speculation – High daily fees ($15) contrast with a large $8.2 billion valuation, raising questions about real usage.
Deep Dive
1. Corporate Treasury Moves (Positive for Price)
Overview: Heritage Distilling’s $82 million token buyback in August 2025, along with Grayscale’s Story Trust purchase in July 2025, are creating steady demand for Story tokens. The Foundation plans to spend proceeds from these deals over 90 days buying tokens on the open market, potentially taking 2-3% of the tokens currently available (CoinMarketCap).
What this means: This buyback could reduce selling pressure and help balance upcoming token unlocks scheduled for October 2025, when 21.6% of Early Backer tokens become available. However, relying heavily on one corporate partner for support adds risk if that partner changes course.
2. Founder Exit & Governance Changes (Negative for Price)
Overview: Co-founder Jason Zhao left in August 2025, causing the price to drop 15%. Zhao held a 5% stake worth $284 million at its peak and generated $45 per day in protocol fees (The Defiant). The new leadership created a Security Council to handle emergency decisions.
What this means: Leadership changes increase uncertainty during a critical growth period. The Security Council’s power to freeze contracts raises concerns about centralization, which could discourage projects that value decentralization, especially in intellectual property (IP) areas.
3. Product Usage vs Speculation (Mixed Signals)
Overview: Story has processed 1.7 million transactions but has fewer than 10,000 daily users on average. The Relative Strength Index (RSI) hit 83 on September 22, indicating the price may be overbought after a 370% gain in 90 days. Partnerships with AI companies like Stability AI add excitement, but the $15 daily fees suggest limited real economic activity (Delphi Digital).
What this means: The price seems driven more by speculation about the potential of combining AI and IP rather than actual usage. Successfully attracting major IP holders, such as music labels and AI dataset owners, before the large token unlocks in November will be key.
Conclusion
Story’s price depends on whether corporate buybacks and AI partnerships can make up for weak fundamentals and leadership uncertainty. The recent 42% weekly price jump shows strong momentum, but the gap between valuation and revenue echoes past “narrative-driven” coins from 2021.
Will the roughly $300 million in tokens unlocking in Q4 cause the price to drop, or can Heritage’s buyback absorb the extra supply? Keep an eye on daily active users and partnership news through October to gauge the outlook.
What are people saying about IP?
The conversation around Story (IP) is swinging between excitement from big investors and doubts about its true value. Here’s what’s happening right now:
- Critics point out the protocol only makes about $15 a day in fees, despite being valued at $8.2 billion.
- A recent listing on the Upbit exchange and an $82 million buyback by Heritage Distilling have pushed the price up.
- Analysts are eyeing a $20 price target, even though some technical signs suggest the price might be too high for now.
Deep Dive
1. @cryptothedoggy: Valuation vs Revenue Reality Check bearish
"$8.2B valuation · $15/day in fees · Price-to-earnings ratio of 1.5 million · Break-even year: 4525"
– @cryptothedoggy (12.3K followers · 86K impressions · Aug 31, 2025)
View original post
What this means: This is a bearish signal for Story (IP). It shows a big gap between how much the project is worth and how much money it actually makes, suggesting the price is driven more by speculation than real business performance.
2. @thisisksa: Buyback-Driven Price Increase bullish
"Story (IP) up 30%:
1️⃣ $82 million buyback at $3.40 (Aug 24)
2️⃣ Upbit exchange accounts for 30% of trading volume
3️⃣ Market makers are narrowing price spreads"
– @thisisksa (8.1K followers · 217K impressions · Aug 31, 2025)
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What this means: This is a positive sign for Story (IP). The price increase is supported by a large buyback from the company’s treasury and strong trading activity on Upbit. However, the price’s strength depends on continued interest from big investors.
3. Coindcx: $20 Price Target mixed
"RSI at 79 indicates the asset might be overbought, but EMA support points to a price range of $14.50–$17 by September. Partnerships with Worldcoin and AI data projects could boost the price."
– Coindcx Analysis (Sept 10, 2025)
What this means: The outlook is mixed. Technical indicators warn the price could drop soon, but ongoing partnerships and developments in AI keep the long-term potential positive.
Conclusion
The overall view on Story (IP) is mixed. On one hand, institutional interest from groups like Grayscale Trust and Heritage Distilling’s buyback suggest growing adoption. On the other hand, concerns about its high valuation compared to low daily revenue and limited on-chain use remain. Trading volume on Korean exchanges and corporate buybacks hint at short-term momentum, but the large gap between daily revenue and valuation is a structural risk. Keep an eye on the Story Foundation’s planned 90-day open market buybacks through November 2025 to see if they help support the price or if selling pressure increases.
What is the latest news about IP?
Story (IP) is gaining momentum through AI partnerships and a buyback program, even as it faces challenges from a co-founder leaving. Here are the key updates:
- Technical Breakout & Worldcoin AI Deal (September 10, 2025) – IP’s price jumped 31% to $11.66 after breaking a key resistance level and announcing a data collaboration with Worldcoin.
- Co-Founder Leaves Amid Low Revenue (August 18, 2025) – Jason Zhao stepped down, raising concerns as daily fees remained low at about $45.
- $360 Million Corporate Treasury Investment (August 11, 2025) – Heritage Distilling invested 15% of its reserves in IP tokens, prompting a buyback program to support the token price.
Deep Dive
1. Technical Breakout & Worldcoin AI Deal (September 10, 2025)
What happened: IP’s token price surged 31% to a new high of $11.66 after breaking through a resistance level at $10.20. This boost came alongside a partnership with Worldcoin to help tokenize AI training data. The technical indicators show strong upward momentum, with the price above all key moving averages (the 20-day average is $7.87). However, the Relative Strength Index (RSI) is at 79, which suggests the token might be overbought and due for a correction. Analysts expect the price could reach between $15 and $18 by December if it stays above the $9.80 support level.
Why it matters: The Worldcoin deal strengthens Story’s role in the growing AI data market. But the token’s price has already increased dramatically—about 370 times since 2024—and daily active users remain under 10,000, indicating that much of the current price may be driven by speculation. Traders are closely watching the $9.80 level as a key support.
(Source: CoinDCX)
2. Co-Founder Leaves Amid Low Revenue (August 18, 2025)
What happened: Jason Zhao, a co-founder of Story Protocol, left the project to focus on his AI startup, Poseidon. At the time, the platform was generating only about $45 per day in fees, despite having a fully diluted valuation (FDV) of $5.8 billion. Following the news, the token’s price dropped 11% over the week. Critics pointed out Zhao’s large vested stake of $284 million, leading to accusations of a “soft rug pull” (a situation where insiders exit while the project struggles).
Why it matters: Leadership changes combined with weak revenue have shaken investor confidence. However, the new CEO, S.Y. Lee, assures that development is ongoing. The big gap between the token’s high valuation and its actual usage remains a concern for many.
(Source: CryptoNews)
3. $360 Million Corporate Treasury Investment (August 11, 2025)
What happened: Heritage Distilling, a company listed on NASDAQ, invested $82 million in IP tokens at a price of $3.40 each. In response, the Story Foundation announced a 90-day buyback program, purchasing tokens on the open market to help stabilize the price amid volatility after the listing.
Why it matters: This institutional investment shows growing confidence in Story’s long-term potential. Still, despite the buyback efforts, the token price remains about 16% below its all-time high from February.
(Source: CoinMarketCap)
Conclusion
Story (IP) is navigating a mix of positive developments and challenges. Its AI partnership with Worldcoin and corporate buybacks highlight growth potential, but leadership changes and low revenue raise questions about sustainability. The key question remains: will the AI data collaboration justify the token’s high valuation and overbought status, or will concerns about governance and fundamentals take center stage?