In a strategic shift that highlights the growing trend of specialized protocols moving toward high-performance layer-1 ecosystems, DATA Network—formerly recognized as Story—has announced plans to retire its independent blockchain. The project is migrating its core artificial intelligence training data protocol to the Sui network, a transition heavily bolstered by a substantial $30 million strategic investment from the Sui Foundation.
The move marks a significant evolution for the project, which originally launched as an intellectual property licensing platform before undergoing a major rebrand to the DATA Foundation in June. Following that pivot, the initiative refocused its technical trajectory toward building a comprehensive, full-stack infrastructure specifically designed for AI training data. As part of this comprehensive migration, the project’s flagship Trace registry, which originally debuted in June, will officially integrate into the broader Sui ecosystem. Furthermore, Walrus, a decentralized storage platform native to the Sui ecosystem, is set to become the default storage layer for all applications operated by the DATA Foundation, according to announcements made by project partners.
Speaking about the rationale behind abandoning a dedicated, single-purpose blockchain, a spokesperson for the DATA Foundation explained to industry media that maintaining an independent chain for a singular use case introduced unsustainable overhead. Running a standalone network required bearing the ongoing financial and operational costs associated with validators, network security upkeep, and custom infrastructure management. According to the foundation’s representative, attempting to build advanced storage and access control capabilities at that specific scale internally would have meant needlessly duplicating technological architecture that already exists and functions robustly within Sui through Walrus and Seal.
The decision to migrate comes on the heels of phenomenal growth for the project’s Trace registry. Designed explicitly to track the complex origins, lineage, and licensing rights of artificial intelligence training data, Trace experienced rapid adoption following its launch. Within approximately four months of operation, the registry scaled to accommodate more than 270 million individual registrations. A representative for the network noted that managing such massive data throughput on an independent blockchain dedicated to a single use case no longer made structural or economic sense, paving the way for the partnership with Sui to handle the heavy lifting of scalability and secure decentralized storage.
Despite the sweeping nature of the upcoming migration, the DATA Network’s existing blockchain will remain fully operational while the upgrade and transition processes are completed. Representatives confirmed that a detailed timeline outlining the migration stages, alongside a comprehensive holder transition plan, will be published well in advance of the final system upgrade. When questioned regarding the exact role that financial backing played in facilitating the move, the spokesperson clarified that the $30 million investment from the Sui Foundation operates as a distinct, separate component of the broader strategic partnership rather than a direct transactional payment for the migration itself.
The ongoing evolution of the DATA Foundation reflects broader shifts within the Web3 and artificial intelligence sectors, where projects increasingly seek out robust, multi-use layer-1 networks to support high-volume data demands rather than fragmenting liquidity and developer resources across isolated standalone chains. As artificial intelligence models demand ever-larger datasets with verifiable provenance, the integration of Trace into Sui—combined with Walrus handling decentralized storage—positions the DATA Foundation to scale its infrastructure alongside the rapid expansion of the AI economy. The DATA Network’s existing chain will continue running its standard operations until the transition milestones are finalized, with further updates regarding token holder impacts expected to be released by the project team prior to the network upgrade.
