Story Protocol has pushed back a planned unfreeze of its $IP token by six months, saying it will keep a larger share of supply locked longer to introduce liquidity more gradually amid growing debate over token release practices. In a statement, Story framed the move as part of “long-term measures” to better align incentives with the community and shore up the network’s economic foundations. The team said the delay will reduce emissions, encourage wider participation, and phase new liquidity in more slowly. “When we launched Story, our mission was to build foundational infrastructure for programmable intellectual property,” the project added, saying that mission remains unchanged even as its view of where traction is forming has evolved. Price and schedule $IP is trading around $1.45–$1.50, roughly 32% lower over the past 30 days — a steeper drop than the CoinDesk 20 Index’s 22% decline. Under the revised timetable, the first sizable release of previously locked tokens allocated to team members, investors and early contributors moves from February 2026 to August 2026. Story stressed the change does not alter the total 1 billion token supply, the size of individual allocations, or legal ownership — only the timing when those tokens may enter circulation. Smart-contract enforcement, not custody To enforce the new lockup terms, Story has added an automated smart-contract mechanism. The foundation said this mechanism will enforce the updated schedule but does not transfer custody of wallets or grant the foundation the ability to move tokens — an attempt to reassure holders worried about centralized control. Why the delay matters Token unlocks are a closely watched event in crypto because a sudden jump in circulating supply can put downward pressure on prices. Recent research suggests big unlocks often trigger delayed selling pressure rather than immediate market rebounds. Analysts have long warned about launches with small free floats and high fully-diluted valuations, which can create volatility and erode investor trust when vesting cliffs arrive. On-chain picture and valuation On-chain metrics compiled by DeFiLlama point to minimal current usage: Story is reporting less than $100 in daily on-chain revenue, signaling that much of the token’s roughly $500 million valuation remains tied to future expectations rather than present cash flow. That gap between market valuation and real-world network activity is part of what’s fueling concern among some investors. Leadership note Late last year co-founder Jason Zhao announced he was stepping back from day-to-day operations to join a new AI venture — a personnel change investors will likely factor into their assessment of the project’s roadmap and execution risk. What to watch next Market participants will be watching whether the new lockup enforcement calms investor nerves or simply delays selling pressure until August 2026. Key metrics to monitor include on-chain revenue and usage growth, any further governance updates around token economics, and how large token holders behave as the updated vesting dates approach. Read more AI-generated news on: undefined/news