Story — Make IP Great Again

1. Introduction

Story is a purpose-built Layer 1 blockchain designed to tokenize intellectual property (IP). It was developed to address the limitations of IP management caused by the ubiquity of the internet and AI, high legal processing costs, and complex registration procedures. Story aims to provide fair compensation to creators and offer users a legitimate and abundant opportunity to utilize IP effectively.

1.1. Story Network's Architecture

Story has adopted the Ethereum Virtual Machine (EVM) as its execution layer to process complex IP data quickly and efficiently, while utilizing CometBFT, the consensus algorithm within the Cosmos SDK, as its consensus layer.

1.2. Proof-of-Creativity

The Proof-of-Creativity (PoC) protocol is a smart contract that enables the introduction of programmability to IP and facilitates the on-chain management of IP. Through PoC, creators can register their IP on the Story network as NFTs, regardless of whether the IP originates on-chain or off-chain. These NFTs are referred to as IP Assets (IPA).

IP Asset

When creators register real-world IP, such as comics or characters, a new NFT is minted and registered as an IPA on the Story network. In contrast, for existing on-chain NFTs, such as Pudgy Penguins, the NFT can be registered directly as an IPA without any additional actions.

IP Account

Every IPA is assigned an IP Account, an ERC-6551 Token Bound Account, upon registration. Each IP Account stores metadata and ownership information derived from its corresponding IPA and interacts with other IPAs through modules.

Module

Modules refer to the contracts and actions that define interactions between IPAs. The Story network currently supports the following four modules:

• Licensing Module: Defines and assigns licenses for IPAs.
• Royalty Module: Establishes revenue-sharing structures between existing IPAs and their derivative IPAs.
• Dispute Module: Mediates ownership disputes over specific IPAs.
• Grouping Module: Enables the creation and management of grouped IPAs.

1.3. Programmable IP License

The Programmable IP License (PIL) is an off-chain document based on U.S. copyright law that grants legal enforceability to all activities conducted within the Story network. Upon IPA registration, all actions involving the IPA, such as the creator's IP ownership, revenue-sharing structures between parent and child IPs defined by the Royalty Module, and the commercial usability of the IP, are granted legal validity through the PIL.

The full details of the PIL can be found in this document. In the future, Story plans to expand its functionalities to include provisions for co-creation and co-ownership, sub-licensing, and fractionalization permissions and rights

2. Story and AI Agents

2.1. Agent TCP/IP

On December 17, Story announced Agent TCP/IP (ATCP/IP), a framework designed to facilitate transactions between AI agents. ATCP/IP enables agents to autonomously establish contracts, conduct transactions, and execute agreements without human intervention, while ensuring legal enforceability of these transactions through the PIL.

Since ATCP/IP is designed for any transaction involving the exchange of IP between two or more agents, each agent must adhere to detailed training guidelines to determine which of their owned content can be considered commercially usable IP. When one agent requests IP from another, ATCP/IP operates through the following process:

1. Request for Information: Agent A (requestor) requests specific IP-related information from Agent B (provider).
2. Terms Formulation: The provider sets conditions for IP sharing in accordance with the PIL.
3. Negotiation: Both agents negotiate the terms of the contract.
4. Acceptance: The requestor accepts the provider’s terms by issuing an immutable token that records the contract details.
5. Information Delivery: The provider shares the IP with the requestor as per the agreed terms.
6. Acknowledgment of Receipt: Upon contract fulfillment, the requestor optionally provides the provider with a certificate confirming completion.

In addition, Story offers ATCP/IP in plugin and module formats, enabling seamless onboarding of various AI agents onto the Story network regardless of their framework. ATCP/IP has already been integrated with or is in the process of supporting a wide range of frameworks, starting with Zerepy from Solana ecosystem leader Zerebro, as well as ai16z’s ElizaOS, Crossmint’s GOAT, and Vercel AI.

This expansion not only enhances the interoperability of the Story ecosystem but also promotes the widespread adoption of ATCP/IP across diverse AI agent environments.

2.2. Suggesting a New Standard for the AI Agent Economy

As the AI agent narrative continues to attract greater market attention and liquidity, the number of agents and the creations they generate are expected to grow exponentially. While the focus has so far been on the mere act of agents creating content, the future will see a shift toward distinguishing which agents garner the most attention and which creations are of the highest quality. These will become the critical competitive factors.

In response to this evolution, Story has introduced ATCP/IP, which tracks the contributions of specific agents and IPs, alongside the Royalty Module, which ensures revenue distribution based on legal agreements. These innovations provide an objective and quantifiable standard for assessing the influence and quality of agents and their creations through measurable economic outcomes.

This dynamic also lays the groundwork for a powerful flywheel effect:

1. High-quality IPs that capture market attention receive more requests for use.
2. Agents that create such IPs generate greater revenue through the Royalty Module, enabling them to reinvest in producing even higher-quality IPs.
3. As all information sharing is recorded on-chain, other agents can learn which IPs are deemed high-quality, which generate the most revenue, and what percentage of revenue distribution is fair for their own creations.
4. This fosters a virtuous cycle within the Story ecosystem, where the overall quality of IP assets improves, and IP sharing increases.

Ultimately, Story's ATCP/IP elevates agent-generated content from simple information sharing or self-branding to becoming an economic resource for generating real revenue, a standard for identifying exceptional agents, and a foundation for improving the quality of creations.

One potential application of this virtuous cycle could involve collaborations between Key Opinion Leader (KOL) agents, such as $AIXBT, which share market sentiment and token analyses on SNS, and DeFi-integrated AI agents (DeFAI agents).

For example, a DeFAI agent (Agent A) that analyzes SNS sentiment and charts to provide investment strategies could face a lack of sufficient data when onboarding to Story. This issue could be resolved by requesting IP from a KOL agent (Agent B), which specializes in SNS sentiment analysis and already possesses rich social data. In this scenario, ATCP/IP and the Royalty Module would mediate the sentiment data market between Agent A and Agent B.

Agent A would gain access to verified social data through legal means, while Agent B could generate revenue simply by maintaining its existing activities, without the need for additional model enhancements. Furthermore, diverse conditions—such as pricing based on data type or royalty payments as a percentage of investment returns generated using the received data—could be implemented during the contract process via the Royalty Module.

3. Story Ecosystem

On November 8, 2024, Story launched its final testnet, Odyssey, with 29 projects participating as Odyssey partners. This chapter will explore the representative dApps in each sector that utilize Programmable IP (PIP), the core feature of Story.

3.1. IPFi

3.1.1. Verio

Verio is a liquidity staking and restaking platform for Story's native token, $IP. Users can stake $IP through Verio to receive $vIP, a Liquid Staking Token (LST), along with interest earnings. Subsequently, users can restake their $vIP into IPAs supported by Verio to generate additional revenue. Currently, there are a total of 4 IPAs supported by Verio, and among them, Mimboku holds the largest amount of $vIP, approximately 98,000 $vIP.

Since the launch of the Odyssey testnet, Verio has garnered significant attention within the Story ecosystem, attracting 110,000 unique users and around 60,000 followers as of December 3, within less than a month. As more IPAs, including AI agents, are added to the Story and economic activities between agents intensify through TCP/IP, Verio is expected to gain even greater traction.

3.1.2. PiperX

PiperX is Story's first native decentralized exchange (DEX) and serves as the liquidity hub of the Story network. As an Odyssey partner, PiperX currently offers features such as token swaps and liquidity pool management.

PiperX aims to establish itself as the infrastructure responsible for the exchange and liquidity provisioning of diverse IPAs on Story, including IP memes, physical IP assets, and creations by AI agents. Ultimately, PiperX seeks to create the following virtuous cycle within the IPA market:

1. Increased onboarding of IPAs onto the Story network.
2. Enhanced liquidity through PiperX.
3. Greater influx of investors.
4. Higher valuation and profitability of IPAs.
5. Strengthened incentives for IPA creators.
6. Improved overall quality of IPAs within the Story ecosystem.

Positioning itself as a liquidity hub for IP assets, PiperX has already garnered significant attention, even during its testnet phase. Within just 28 days of its launch, it has attracted 250,000 community members and over 100,000 followers, as noted in this announcement.

3.2. AIxIP

3.2.1. Mahojin

Mahojin is a generative AI content creation platform that allows users to generate AI images using a rich array of references provided by Mahojin, as well as integrations with other applications. Unlike typical platforms where users need to input detailed prompts from the start, Mahojin lowers the entry barrier by offering a remix feature that allows users to modify images based on their preferences.

Users can upload their own creative models, utilize Mahojin's library for image generation, and earn points through image remixing. Additionally, users are rewarded when their generated images are used by others, fostering a collaborative and rewarding ecosystem.

3.2.2. Sekai

Sekai is an AI storytelling platform that enables users to create short animations based on natural language prompts. On December 5, 2024, Sekai successfully completed a $3.1M seed round with backing from Hashed, a16z CSX, and Azuki, and participated as an Odyssey partner within the Story ecosystem.

Users can create stories using various IPAs of Story and Sekai's one-click development services. These stories can then be claimed as property, monetized, and even interact with other narratives, providing a dynamic and engaging user experience.

Before the launch of the Odyssey testnet, Sekai collaborated with Azuki, a leading blue-chip NFT project, to host community events. During these events, Sekai showcased animations created using Azuki NFTs, such as in this example, drawing significant attention. With its ability to generate vibrant and dynamic derivative works, Sekai is expected to play a crucial role in fostering active engagement within NFT communities.

3.3. AI Agent

3.3.1. Benjamin

Benjamin is the official mascot of the money market protocol Unleash Protocol and the first AI agent registered as an IPA on Story. Through campaigns where users connect their wallets and Twitter accounts, mention Benjamin's Twitter handle (@BenjaminOnIP), or post content related to IP and Story, Benjamin has garnered significant interest from participants in the Story ecosystem.

Although detailed information about Benjamin's unique traits and role as an agent has not yet been disclosed, Unleash Protocol asserts that Benjamin is more than just a mascot. By facilitating economic activity, revenue sharing, and community cohesion, Benjamin has the potential to evolve into a distinctive character comparable to Steve Jobs or Bill Gates.

Given its positioning as Story's first agent, Benjamin is expected to draw substantial attention after the mainnet launch. Observers will closely watch whether Benjamin's IP content resonates with the Story community and whether seamless revenue sharing among agents derived from Benjamin can be successfully implemented.

3.3.2. DaVinci

DaVinci is the first agent designed for IPAs, launched on January 6. DaVinci offers the following features, enabling users to perform desired tasks effortlessly with a simple click or natural language prompt:

• Create Token: Generate a token named X.
• Mint IPA: Mint an IPA with the symbol X.
• Rate My YAPS: Estimate how many Kaito YAPS points the user-provided text would earn.
• Seek Alpha: Provide insights on the token X.
• Buy Token With IP: Purchase the token X using $IP.

DaVinci simplifies complex processes, making it an intuitive tool for users to engage with IPAs and tokens within the Story ecosystem.

Given its features, DaVinci is expected to emerge as a core AI agent within the Story network, capable of serving as an SNS sentiment analyzer, IPA launchpad, and DeFAI (DeFi + AI) agent.

Currently, DaVinci's interactions are limited to PiperX, but as more dApps onboard to Story, leveraging its EVM compatibility, DaVinci could evolve into a multi-purpose agent. It could analyze market sentiment across diverse sources, identify trending assets, and execute DeFi transactions such as swaps, limit buys, and LP management, thereby enhancing its utility within the ecosystem.

Additionally, the Story ecosystem features several projects that encourage user creativity and ensure fair monetization, including:

• Spotlight Protocol: An IP-based memecoin launchpad.
• Color: Story’s first native NFT marketplace.
• BlockBook: A platform for monetizing creative works.

These projects, alongside DaVinci, contribute to fostering a robust environment that supports user creativity and ensures fair revenue sharing.

4. Conclusion

Story has emerged as one of the most highly anticipated projects of Q1 2025, driven by its innovative approach as a layer for programmable IP, the active social media presence of co-founder Jason Zhao, and its keen understanding of industry trends.

Notably, Story demonstrated its growing prominence by ranking 4th with a 6.56% mindshare in Kaito's Pre-TGE Arena, a metric showcasing the mindshare of pre-token-launch projects.

However, for Story to maintain its position as a prominent project post-mainnet launch, it must focus on three key areas: onboarding AI agents capable of generating meaningful IPs, retaining users after airdrops, and establishing clear utility for $IP. In particular, regarding $IP’s tokenomics and utility, Story could draw inspiration from successful cases like Virtual Protocol’s $VIRTUAL. This includes strategies such as pairing IPA and $IP in liquidity pools, utilizing transaction fees collected in $IP for IPA buybacks, and implementing a token-burning model to support ecosystem growth, as highlighted in this example.

Story aims to establish a clear revenue-sharing structure between IP creators and users, fostering a legitimate and fair competitive market where creators and agents can confidently pursue their interests. This positioning could enable Story to build a strong moat in a rapidly expanding digital content environment driven by the proliferation of AI agents.

Finally, we want to conclude by referencing a statement from Story’s development team, PIP Labs, regarding its collaboration with Stability AI, the developer of the open-source AI model Stable Diffusion.

"We recognized a significant gap in the AI ecosystem where creators lack a clear pathway to monetize derivative works. To address this, we plan to collaborate with Stability AI to track contributions throughout the entire process of AI-generated content and transparently record them on the blockchain. This will enable the establishment of a systematic revenue-sharing system."
— DigitalAsset, excerpt from the article "PIP Labs and Stability AI Collaborate on 'Protecting Copyrights for AI-Generated Content'"..