Story delays $IP token supply unlock as usage lags and dump fears grow

Team and capitalist tokens present acceptable to unlock successful August 2026 arsenic the IP-focused blockchain moves to dilatory caller supply, tighten token economics and bargain clip to physique web usage amid anemic marketplace sentiment.

Feb 2, 2026, 4:43 a.m.

Layer 1 blockchain Story Protocol has delayed the scheduled unfreezing of its $IP token by six months, opting to support a larger stock of proviso locked for longer arsenic statement intensifies implicit however crypto projects negociate token releases.

In a statement, Story said the determination is portion of a broader acceptable of semipermanent measures aimed astatine strengthening alignment with its assemblage and reinforcing the network’s economical foundations, describing the hold arsenic a mode to present caller liquidity much gradually alongside little emissions and wider participation.

“When we launched Story, our ngo was to physique foundational infrastructure for programmable intelligence property,” Story said successful a statement. “While that ngo remains unchanged, our knowing of wherever the strongest traction is forming, and what semipermanent occurrence requires has continued to evolve.”

The $IP token is trading astir $1.45 to $1.50 close now. That's down astir 32% implicit the past 30 days, worse than the CoinDesk 20 Index's 22% drop, highlighting the pugnacious marketplace conditions Story mentioned.

Under the revised schedule, the archetypal large merchandise of antecedently locked team, investor, and aboriginal contributor tokens volition displacement from February 2026 to August 2026.

Story says the alteration doesn't interaction the full 1 cardinal token supply, idiosyncratic allocations oregon ineligible ownership, and lone alters the timing astatine which locked tokens whitethorn participate circulation. The instauration added that an automated smart-contract mechanics has been introduced to enforce the updated lockup terms, portion emphasizing that it does not summation custody of wallets oregon the quality to determination tokens.

Token unlocks are intimately watched events successful crypto markets due to the fact that abrupt increases successful circulating proviso tin measurement connected prices, and caller probe has suggested that ample releases often pb to delayed selling unit alternatively than contiguous rebounds.

Analysts often point to alleged low-float, high-fully-diluted-valuation launches, wherever a tiny information of tokens commercialized freely portion astir stay locked, arsenic a root of volatility and capitalist distrust erstwhile vesting periods expire.

On-chain metrics compiled by DeFiLlama amusement Story has had astir non-existent enactment truthful far, with less than $100 successful regular on-chain revenue, underscoring however overmuch of the token’s $500 cardinal valuation remains tied to aboriginal expectations alternatively than contiguous currency flow.

Late past year, Story's co-founder Jason Zhao announced helium was stepping backmost from day-to-day operations to articulation a caller AI venture.