CoinDesk
DATA is shutting down its blockchain and moving to Sui after a $30 million investment from the Sui Foundation. The startup, formerly known as Story Protocol, is narrowing its focus to Trace, a registry that records the origins, consent terms and licensing history of AI training data.
Why it matters
DATA had raised $140 million and spent years pursuing onchain intellectual property across areas including music, patents and trademarks. CEO Andrea Muttoni said established licensing markets were difficult to disrupt and the company had spread itself too thin. The shift concentrates resources on a more specific problem: giving buyers and sellers a way to check where training data came from and what rights apply.
Trace records details such as when data was submitted, contributor terms and later licensing or payment events. Marketplace partner Kled is adding 3 million to 4 million contributions a day, including older records being brought onto Trace. That activity measures registered contributions, not sales, and DATA has not disclosed how many records have generated licensing revenue.
Market impact
Moving to Sui lets DATA stop maintaining its own blockchain and focus on its product. The company also plans to use Sui tools Walrus for decentralized file storage and Seal for encryption and access controls. Trace currently records information about files rather than storing them; adding storage could let buyers compare delivered data with its original submission.
The Sui Foundation becomes DATA Network's largest institutional holder through the investment. DATA also plans to migrate its existing token to Sui on a one-to-one basis, with holders' rights and vesting schedules unchanged. Its current chain will remain operational until the migration is complete.
Frequently asked questions
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Why is DATA shutting down its own blockchain?
The company is concentrating on Trace, its AI training-data registry, rather than spending resources maintaining a separate blockchain. CEO Andrea Muttoni said its earlier intellectual-property ambitions were spread too broadly across entrenched markets.
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What does DATA's Trace product record?
Trace records where training data came from, contributor consent terms and licensing or payment history. It currently stores information about files rather than the files themselves.
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What does Kled's daily contribution figure represent?
DATA says Kled adds 3 million to 4 million contributions a day to Trace, including older records. The figure measures registered contributions, not how much data has been sold.
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How could Sui's Walrus and Seal tools fit into Trace?
Walrus can provide decentralized storage for copies of registered files, while Seal can encrypt files and restrict access. Storage could help buyers compare received data with its original submission.
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What happens to existing DATA token holders during the migration?
DATA plans to move its existing token to Sui on a one-to-one basis. Holders' rights and vesting schedules are to remain unchanged, and the current blockchain will operate until migration is complete.
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