Inside the DATA Network Sui Migration & Sui Foundation’s $30M Investment

The DATA Network project will retire its standalone Layer 1 chain and migrate its AI training data protocol to Sui. This significant move is backed by a $30 million strategic investment from the Sui Foundation.

Key Takeaways

• Sui Foundation invests $30 million in DATA Network.
• DATA is retiring its independent L1 to run natively on Sui.
• DATA token balances will carry over one for one to Sui.

The $30 Million Strategic Investment

The Sui Foundation is making a major commitment to the future of AI data. The organization is investing $30 million in DATA Network, the project formerly known as Story.

According to DATA Foundation CEO Andrea Muttoni, this investment makes Sui Foundation the largest holder of DATA tokens. 

This places them ahead of both DATA Foundation and PIP Labs. The announcements did not disclose token quantities, pricing, or a payment schedule.

In addition to the investment, DATA founder and PIP Labs CEO SY Lee is joining Sui Foundation as a strategic adviser. The $30 million investment is a separate part of the broader partnership, highlighting the deep alignment between the two entities.

Read also: Samsung Wallet Partners with Sui for Gas-Free USDC

Why DATA Network is Migrating to Sui?

The decision to migrate follows a strategic rebrand. Story rebranded as DATA Foundation in June, pivoting from broad intellectual property licensing to building a full stack for AI training data. 

The project launched Trace, a registry that tracks the origin and licensing rights of training data.

Trace grew rapidly. It reached more than 270 million registrations in about four months. As the registry scaled, running an independent blockchain for a single use case no longer made sense. 

A DATA Foundation spokesperson explained that carrying the costs of validators, network security, and infrastructure became impractical.

Building storage and access control at that scale would have meant rebuilding what Sui already offers. 

The spokesperson specifically pointed to Walrus and Seal, two existing Sui ecosystem tools. By moving to Sui, DATA Network can leverage this existing infrastructure.

DATA Token Migration Details

For token holders, the plan promises continuity. The DATA token currently serves as the gas token on the old chain. It will remain the protocol token on Sui.

The DATA token migration Sui process will work as follows:

• Balances will carry over one for one.
• Migration does not change the total supply.
• Locked and vesting positions will carry over unchanged.
• Governance rights and tokenomics are promised to remain at least equivalent.

However, support for network services on the original Layer 1 will wind down. This includes validator staking, automated market makers, and other smart contracts. 

The network also supports bridged USDC.e, but the migration FAQ does not yet explain how bridged assets will be handled.

The existing chain will continue to operate until the upgrade is complete. Detailed transition instructions will be published prior to the migration.

Read also: SUI Apps Gain One-Signature Flows via Aurora Intents: Cross-Chain Swaps Explained

Walrus Integration and Future Plans

A key part of the Sui Foundation DATA Network investment is the integration of Walrus. Walrus is a decentralized storage platform in the Sui ecosystem. It will become the default storage layer for applications operated by DATA Foundation.

Currently, a Trace record proves that a file was registered and when. The planned Walrus integration will add an encrypted, immutable copy of the original file. This allows later processing to be checked against the original data.

The rollout will be phased. DATA Foundation expects the Walrus storage change within the coming months. The broader network migration will follow a separately announced timeline. 

Holders need take no action or change wallets now. The foundation will publish instructions ahead of the transition.

FAQ

What is the DATA Network Sui migration?

It is a planned move where DATA Network retires its independent Layer 1 blockchain and runs its protocol natively on Sui.

How will the DATA token migration work?

DATA balances will carry over one for one. The total supply will not change, and locked or vesting positions remain unchanged.

What happens to validator staking on the old chain?

Support for validators, staking, and smart contracts on the original chain will wind down as the network migrates.

What is the Sui Foundation DATA Network investment?

Sui Foundation is investing $30 million in DATA Network, making it the largest holder of DATA tokens.

What is Walrus?

Walrus is a decentralized storage platform in the Sui ecosystem. It will become the default storage layer for DATA Foundation applications.

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