DATA Moves Its Layer 1 to Sui for AI Data Provenance

DATA Foundation, formerly Story Protocol, will shut down its self-built Layer 1 and migrate to Sui after a $30 million investment from the Sui Foundation, which becomes DATA’s largest institutional shareholder. Existing investors, including a16z crypto, retain their stakes. The original chain will stay active until migration is complete, and DATA tokens are expected to move at a 1:1 ratio with holder rights and vesting schedules unchanged. DATA has shifted its focus from broad intellectual-property applications to Trace, a system that records the origin, contributor consent and licensing history of AI training data. Partner marketplace Kled reportedly adds 3 million to 4 million contribution records daily, but DATA says those records do not necessarily represent data generating licensing revenue. On Sui, DATA plans to use Walrus for file storage and Seal for access controls, allowing original files to be stored and restricted to authorised buyers. The move also removes the cost of maintaining a separate blockchain. For traders, the migration is an adoption signal for Sui, while DATA’s commercial traction remains unproven. Licensing revenue, migration progress, and DATA token liquidity and holder distribution on Sui are key indicators to monitor.