S.Y. Lee, co-founder of Story Protocol, says that the project needs time to build real usage and has decided to delay its first major token unlock by six months in August. By delaying this release, the insiders will not be able to sell their tokens. According to Lee, this delay helps to project more time to grow real usage before the new supply reaches the markets.
Investors’ Concern and Lee’s Reply
Data from DeFiLlama shows that in September 2025, Story generated over $43,000 per day in fees, and right now the number is zero. This makes investors worry and raises concerns that the network is actually making money.
Lee argues that people are focusing on the wrong measurement. He says that Story is not like the other trading platforms, which generate profits from the transaction fees. Instead, the project is designed to record who owns the data and define how it can be used, while setting rules for future payments. Lee says that most of the money is expected to come from the business licensing agreements, especially with the AI companies.
Story is now concentrating on tokenized media and creative content. This includes collecting real human-made data that AI firms need, voice and video recordings, and other materials that are difficult to copy legally from the internet. Lee believes that demand for this type of data will grow in the upcoming years.
Large token releases often create selling pressures, and by postponing the unlock, Story reduces the risk of sudden selling and keeps supply lower. Lee said that if the founders think of the quick gains, they would prefer a shorter lock period. Lee mentioned how Worldcoin previously extended lockups for the insiders. This move gave the project more time to build, and the market responded positively. This lockup extension gives Story extra time to prove it can attract AI firms and build useful data markets.
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