DATA Network Plans to Transition to Sui and Close Its Own Blockchain Network

DATA Network, formerly known as Story, is set to close its independent blockchain network and migrate its AI training data protocol to the Sui ecosystem. This transition is supported by a $30 million investment from the Sui Foundation. The DATA Network blockchain project will be integrated with Trace, a registry launched in June, and will become part of the Sui ecosystem. Additionally, Walrus, a decentralized storage platform in the Sui ecosystem, will become the primary storage platform for applications managed by DATA Foundation, as company partners reported on Monday.

A representative of DATA Foundation noted in an interview with Cointelegraph that supporting a separate blockchain network for a single task entailed costs for validators, network security, and infrastructure. He added, "Building a storage and access control system on such a scale would mean we would have to rebuild what Sui already has in Walrus and Seal."

The decision to migrate followed the rebranding of Story Foundation to DATA Foundation in June, when the company shifted its focus from intellectual property licensing to creating a "full data stack for AI training." Trace was also launched to track the provenance and licensing rights of training data. Over four months, Trace gathered more than 270 million registrations, making the operation of an independent blockchain network for a single task unfeasible, the representative added. The existing DATA Network blockchain will continue to operate until the upgrade process is completed, and a detailed timeline and transition plan for holders will be published before the upgrade.