As debate intensifies over how crypto projects manage token issuance, layer 1 blockchain Story Protocol has delayed the scheduled unfreezing of its $IP token by six months, opting to lock up a larger share of the supply for longer.
Story said in a statement that the decision was part of a broader set of long-term measures aimed at increasing coordination with the community and strengthening the economic foundation of the network, describing the delay as a way to introduce new liquidity more gradually while lowering emissions and wider participation.
“When we launched Story, our mission was to build the infrastructure for programmable intellectual property,” Story said in a statement. “While that mission remains the same, our understanding of where the strongest traction is building and what is needed for long-term success continues to evolve.”
The $IP token is currently trading at around $1.45 to $1.50. The index is down about 32% over the past 30 days, worse than the CoinDesk 20 Index’s 22% decline, highlighting the dire market conditions Story mentioned.
Under the revised timeline, the first major release of previously locked team, investor and early contributor tokens will move from February 2026 to August 2026.
Story said the change will not affect the total supply of 1 billion tokens, individual allocations or legal ownership, but will simply change the time when locked tokens enter circulation. The foundation added that it has introduced automated smart contract mechanisms to enforce the updated locking terms, while stressing that it will not gain custody of the wallet or the ability to move the tokens.
Token unlocks are a closely watched event in the cryptocurrency market, as a sudden increase in circulating supply can put pressure on prices, and recent research shows that large releases often lead to delayed selling pressure rather than an immediate rebound.
Analysts often point to so-called low-float, high fully diluted valuation offerings, in which a small portion of tokens trade freely while the majority remains locked, as a source of volatility and investor distrust when vesting periods expire.
On-chain metrics compiled by DeFiLlama show that Story has seen virtually no activity to date, with less than $100 in daily on-chain revenue, underscoring how much of the token’s $500 million valuation is still tied to future expectations rather than current cash flows.
Late last year, Story co-founder Jason Zhao announced that he would be stepping down from day-to-day operations to join a new artificial intelligence venture.
