Story Protocol plans to launch IP-focused Layer 1 this year

Blockchain startup Story is emerging from stealth with its bespoke Layer 1 network built for IP management, which is expected to launch later this year, co-founder Jason Zhao told The Block in an interview.  

The project is backed by notable venture capitalists, including Paris Hilton’s 11:11 Media, Samsung Ventures and Andreessen Horowitz, the latter of which led its initial $54 million Series A funding round. Founded in 2023, Zhao said Story has already amassed over 50 clients looking to build intellectual property-focused tools into their business, including a few notable NFT projects. 

“We want to do for IP what bitcoin did for money,” Zhao said. “We want to turn IP into these ‘programmable Legos’ that allow creators to bring their creative assets on-chain, creating a market and liquidity for a class that is often overlooked but super important.”

What is Story?

Story is an open-source repository for intellectual property owners and anyone who wants to access those creations. The team is building tools to handle the “entire lifecycle” of IP management, from creation to provenance to licensing and revenue sharing for essentially any media.

Handling IP today can be a time-consuming, confusing and expensive process that typically involves teams of lawyers, Zhao said. Moving IP onto a decentralized network governed by rules laid out in transparent and self-executing computer code can mitigate some of the headaches.

“Creators will be able to set the terms of how others can use their work, how much they will have to pay upfront, what the royalties and any types of restrictions,” Zhao said. 

Technical details

In part because of a long list of notable backers and the recruitment of filmmaker David S. Goyer (known for “Blade” and “The Dark Knight”) as an advisor, Story made a splash when first announced this year. But this is the first look into its web3 application, set to launch by the end of the year. 

Crypto founders have long sought to disrupt the IP industry — with some success using programmable NFTs and decentralized marketplaces. Recent market entrants include networks like Silicon Valley veteran Antonio Garcia Martinez’s attribution network Spindl, which primarily focuses on advertising.

For its part, Story is using an EVM-compatible blockchain together with a custom "Proof-of-Creativity" consensus algorithm that will handle things like attribution and ownership. Users who upload IP assets on-chain will receive a corresponding NFT and account using a modified version of the ERC-6551 token standard. 

If someone wants to create, remix or commercialize a derivative version of a creative work, they can mint “License Token” NFTs that will have the terms-of-use pre-coded. Those tokens are also governed by an off-chain legal contract called the “Programmable IP License,” though licensing and royalty “modules” can also be attached on-chain. 

There will also be a “dispute module” to help users resolve conflicts through arbitration when disputes inevitably arise. Derivative work that doesn’t properly cite or reward “parent” projects can also be labeled with tags such as “plagiarism.” 

The team plans to work with third-party experts to provide crowdfunding, community building and licensing guidance. Zhao also put a particular focus on AI, which he says will radically reshape how content is created and consumed online. 

“If I’m Drake, I might allow people to use my voice … but then they have to pay me. You know, some amount upfront or some percentage of the revenue. Right now, that is extremely difficult for artists and remixers. This is a win-win.”