Layer 1 blockchain Story Protocol has delayed the planned release of its $IP token by six months, opting to keep a larger portion of the supply locked up for longer as debate intensifies over how crypto projects handle token releases.
In a statement, Story said the decision is part of a wider set of long-term measures aimed at strengthening adaptation to its community and strengthening the network’s financial foundations, describing the delay as a way to introduce new liquidity more gradually, along with lower emissions and wider participation.
“When we launched Story, our mission was to build foundational infrastructure for programmable intellectual property,” Story said in a statement. “While that mission remains unchanged, our understanding of where the strongest traction forms and what long-term success requires continues to evolve.”
The $IP token is trading around $1.45 to $1.50 right now. That’s down about 32% over the past 30 days, worse than the CoinDesk 20 Index’s 22% drop, highlighting the rough market conditions the Story mentioned.
According to the revised schedule, the first major release of previously locked team, investor and early contributor tokens will shift from February 2026 to August 2026.
The story says the change does not affect the total supply of 1 billion tokens, individual allocations or legal ownership, and only changes the timing of when locked tokens can enter circulation. The foundation added that an automated smart contract mechanism has been put in place to enforce the updated lock terms, while stressing that it will not get custody of wallets or the ability to move tokens.
Token unlocks are closely watched events in crypto markets because sudden increases in circulating supply can weigh on prices, and recent research has suggested that large releases often lead to delayed selling pressure rather than immediate rebounds.
Analysts often point to so-called low-float, high-fully diluted valuations, where a small portion of tokens are freely traded while the majority remain locked up, as a source of volatility and investor mistrust when vesting periods expire.
On-chain metrics compiled by DeFiLlama show Story has had almost non-existent activity so far, with less than $100 in daily on-chain revenue, underscoring how much of the token’s $500 million valuation remains tied to future expectations rather than current cash flow.
Late last year, Story’s co-founder Jason Zhao announced that he was stepping back from day-to-day operations to join a new AI project.
