Story Protocol Delays $IP Token Unlock Amid Weak Network Activity

Layer-1 blockchain Story Protocol has delayed the release of a large batch of its tokens by six months. The decision comes as the project faces weak usage and fears that a sudden increase in token supply could push prices down further. The team says that the delay is meant to protect the project’s long-term stability.

Now it has been decided to launch the tokens held by the team and early investors in the market in August 2026 instead of February. Story clarified that nothing has changed about the total number of tokens or who owns them.

Only the timing of the release has been adjusted, and this will be handled automatically through smart contracts.

The project’s $IP token is currently trading around $1.45, down more than 30% over the past month amid a broader market slowdown.

Experts note that when a large number of locked tokens are released, selling pressure often builds gradually rather than easing quickly.

So far, on-chain data shows very little activity on Story’s network, which has raised questions about its $500 million valuation.

Uncertainty has also increased after co-founder Jason Zhao stepped back from daily operations to focus on an AI startup.

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