DATA Network, the crypto project formerly known as Story Protocol that pivoted to AI training data in June, is pivoting yet again – ditching its own standalone blockchain in favor of the Sui network and a fresh $30 million injection.
The Sui ecosystem will inherit a "live supply of rights-cleared AI training data," the two projects' foundations said in a joint release. Walrus, Sui's data platform, will become the default storage layer for applications operated by DATA Foundation.
"The upgrade gives AI labs a single place to source real-world training data they are allowed to use," according to the release.
The announcement comes after DATA and developer PIP Labs, led by SY Lee, failed to generate much traction for their blockchain project focused on intellectual property, even after predecessor Story Protocol raised hundreds of millions of dollars from the venture-capital firm Andreessen Horowitz (a16z) and other investors. The project also issued crypto tokens, at one point valued at more than $4 billion, now down to about $74 million, based on CoinGecko data.
In July, Story Protocol rebranded as DATA and pivoted from intellectual-property licensing to AI training data, as DeAI News reported at the time. That was after Lee said in February that the network needed more time to build usage and defended its near-zero on-chain revenue, as reported by CoinDesk. (The DATA Network's chain has about $33,600 of deposits locked, ranking 250th among all blockchain projects tracked by DefiLlama.)
Under the terms of the new deal, Sui and Walrus will become home to DATA's on-chain registry of AI training data, Trace, along with encrypted, immutable copies of the contributed files.
Sui, whose own token has a $4.8 billion valuation, was founded in 2021 by a team of developers who previously worked on Meta's ill-fated stablecoin project, Libra.
"The existing DATA Network will continue to operate until the upgrade is complete, and a detailed timeline and holder transition plan will be published prior to the upgrade," the press release reads.
The DeAI angle: DATA offers yet another example of blockchain projects pivoting to AI after struggling under original strategies. Here, consolidation is the apparent solution: retire a lightly used chain and rely on Sui for transactions and Walrus for storage. Whether that creates demand beyond company-reported registrations remains unproven.
HOW AI WAS USED IN THE PRODUCTION OF THIS PIECE: I drafted this story on Hermes (connected to ChatGPT) using a custom skill, then used the Distro Publisher MCP connector to file the piece directly to DeAI News on DistroVerse, our web app. I then edited the piece using the built-in DistroVerse story-editing interface, and I checked the facts prior to publication.