Story Protocol is a layer 1 blockchain that aims to support the tokenization of intellectual property, including ideas, images, assets, songs, AI models, NFTs, and image rights. ^[1]

Overview

Story Protocol, or Story, is a blockchain project founded in 2022 by Seung Yoon Lee, Jason Zhao, and Jason Levy. It aims to address challenges in intellectual property (IP) management and monetization by utilizing blockchain technology. By incorporating attribution, usage terms, and royalty agreements on-chain, Story seeks to create a decentralized framework that supports creators in protecting their work, enabling collaboration, and facilitating revenue generation.

The platform includes the Story Network, a layer 1 blockchain designed for IP data structures; the Proof-of-Creativity Protocol, which supports IP registration and programmable metadata; and the Programmable IP License, linking blockchain-based IP management with legal frameworks. Story aims to modernize IP systems to align with the demands of a digital and AI-driven landscape. ^{[1] [2] [3] [4] [5]}

Co-founder Zhao likens Story Protocol’s ability to simplify IP licensing to the way Spotify and Netflix made accessing music and TV legally so cheap and convenient that most illegal downloading stopped.

"We’re not necessarily saying, ‘Hey, we built software that ensures that no one can ever copy IP from anyone else unless they use Story.’ But actually, we created a system where, if you’re OpenAI, you can access, hopefully, a very, very large IP repository with many different sources, and all the terms very transparently [set out], such that you don’t have to worry about it. It’s actually more convenient for you to do the right thing.” ^[14]

Currently, in beta testing on Ethereum’s Sepolia test network, Story Protcol’s mainnet is due to launch in the first quarter of 2025. ^[14]

Products

Story Network

Story Network is a layer 1 blockchain aimed at efficiently handling complex intellectual property (IP) data. Its Proof-of-Creativity Protocol facilitates features such as permissionless licensing and automated royalty payments. As an EVM-equivalent, it allows for the migration of Solidity applications, with a focus on IP management and monetization. ^{[1] [2] [6]}

Proof-of-Creativity Protocol

Story’s Proof-of-Creativity Protocol aims to enable users to register intellectual property (IP) as IP Assets (IPAs), represented as on-chain NFTs linked to ERC-6551 IP Accounts. The protocol facilitates licensing, royalty payments, and dispute resolution through various modules.

It provides permissionless licensing by offering ready-to-use contracts and automated license tokens, allowing creators to set terms for derivative works. The royalty module automates payment distribution based on predefined policies, aiming to ensure reliable and transparent management of IP. Story seeks to decentralize and streamline IP management through programmable solutions. ^{[1] [2] [6] [8]}

Programmable IP License

Story aims to integrate intellectual property (IP) with blockchain technology through the Programmable IP License (PIL). The PIL provides a legal framework that connects real-world IP to on-chain tokenization, allowing IP owners to define and enforce licensing, commercialization, and remixing terms through Story’s smart contracts.

The PIL offers standard configurations, such as Non-Commercial Social Remixing, Commercial Use, and Commercial Remix, and allows developers to create custom terms using Story’s SDK. ^{[1] [2] [7]}

Architecture

Story Protocol's architecture aims to manage and monetize intellectual property (IP) through blockchain technology. Its key components include the IP Asset, IP Account, and Modules.

The IP Asset represents an IP on-chain, typically as an NFT. If an IP is off-chain, it can be minted and registered as an NFT. Each IP Asset is associated with an IP Account, a smart contract that stores data such as License and Royalty Tokens, and enables interaction with other system components.

Modules are customizable smart contracts that extend the functionality of IP Accounts, enabling operations like licensing, royalty sharing, and remixing. Core modules include Licensing, Royalty, Dispute, and Grouping Modules.

Registries serve as directories managing global protocol states and overseeing broader protocol functions beyond individual IPs.

A Programmable IP License (PIL) is a legal contract that defines licensing terms for an IP Asset, mapped on-chain to streamline the process and enhance transparency.

This architecture aims to offer a flexible, programmable approach to IP management, allowing creators to define, track, and monetize their work.^{[9] [5]}

Ecosystem

Story Academy

The Story Academy is a program designed to assist entrepreneurs and projects building on the Story platform. It aims to provide technical guidance, marketing expertise, and connections to investors. The program focuses on projects that are already launched or integrating with Story, offering grants of $20k to $50k for MVP development in certain cases.

The program consists of two components:

• Accelerator: Aimed at established projects with a clear roadmap, supporting teams in achieving product-market fit and growth over 6-7 weeks.
• Incubator: Tailored for pre-seed projects, offering mentorship to help them progress from concept to MVP over 12 weeks, culminating in a demo day. The Story Academy aims to help projects develop from early-stage ideas to fully realized products. ^{[10] [11]}

Experimental Playground

The Experimental Playground on Story, operating on Sepolia, aims to provide creators with a straightforward way to register real-world IP as an IP Asset. Creators can upload files, mint IP, or use existing on-chain NFTs.

They can attach one of three license options:

• Non-Commercial Social Remixing: Allows remixes but prohibits resale or commercialization.
• Commercial Use: Grants usage rights for a set price, excluding resale or remixing.
• Commercial Remix: Permits usage, remixes, and distribution, with a revenue share. The IP Asset’s detail page includes metadata and links to related parent and child IPs. ^[12]

Funding

Story Protocol secured over $54 million in funding in May and September 2023, with a16z crypto, part of Andreessen Horowitz, leading the round, alongside investors such as Endeavor, Polychain Capital, Hashed, Paris Hilton’s 11:11 Media, and Samsung Next. The funding aims to support the development of its system for extending intellectual property through online collaboration. ^[13]

In August 2024, Story raised a further $80 million in Series B. ^[14]