Data Network Plans Sui Migration, Phases Out Its Own Blockchain

DATA Network, previously known as Story, plans to retire its standalone blockchain and shift its AI training data protocol to Sui. The transition is supported by a $30 million investment from the Sui Foundation, the projects said in a Monday announcement.

As part of the move, DATA Foundation’s Trace registry—launched in June—will be integrated into the Sui ecosystem. Walrus, a decentralized storage layer built for Sui, is set to become the default storage component for applications operated by DATA Foundation and its partners.

Key takeaways

• DATA Network is moving from an independent chain to Sui for its AI training data protocol.
• Trace, launched in June, will join the Sui ecosystem as part of the transition.
• Walrus is expected to become the default storage layer for DATA Foundation–operated applications.
• The projects cited cost reasons, including avoiding the need to rebuild core infrastructure already provided by Sui and Walrus.
• DATA Network will keep operating its current chain until the migration is completed, with a detailed plan to follow.

From Story’s original focus to Sui-based “full stack”

The decision comes after Story Foundation rebranded to DATA Foundation in June and reframed the project’s goals. Instead of focusing on intellectual property licensing alone, the organization said it is building what it describes as a “full stack for AI training data,” supported by Trace for tracking how training data originates and what rights it carries.

Trace was introduced to provide visibility into the source and licensing position of training data. According to a DATA Foundation spokesperson speaking to Cointelegraph, the registry expanded quickly—reaching more than 270 million registrations in roughly four months. That scale, the representative argued, reduced the rationale for maintaining an independent blockchain dedicated to a single use case.

Why retire a dedicated chain

DATA Foundation’s spokesperson said the core issue was economics and duplication. Operating a dedicated blockchain, they explained, requires funding for validators, network security, and supporting infrastructure—costs that grow as usage expands.

“Building storage and access control at that scale ourselves would have meant rebuilding what Sui already has in Walrus and Seal,” the spokesperson said.

In other words, the shift is positioned less as a strategic downgrade and more as an architectural consolidation. DATA Foundation is effectively moving responsibilities—such as storage and access control—onto components already built for the Sui ecosystem, rather than recreating those layers on its own chain.

The spokesperson also emphasized that the $30 million Sui Foundation investment was not the deciding driver by itself. When asked how much it influenced the move, they said the investment was a separate part of the broader partnership.

Trace and Walrus to become the new ecosystem building blocks

Under the planned transition, Trace will be integrated into Sui. While Trace is currently tied to the DATA Network’s approach, the announcement indicates it will “join the Sui ecosystem,” aligning the registry’s infrastructure with Sui’s network.

At the same time, Walrus—described as a decentralized storage platform within the Sui ecosystem—will become the default storage layer for applications operated by DATA Foundation and its partners. The change matters because AI training data workflows generally depend on storing large volumes of data and maintaining reliable access controls. By adopting Walrus, DATA Foundation is betting that storage and access requirements can be met using Sui-native infrastructure.

For users and developers, this could simplify integration. Instead of building storage and access systems around DATA Network’s standalone infrastructure, application operators will be able to align with Sui and Walrus for the underlying storage layer.

Migration plan still to come

DATA Network says it will keep its existing blockchain running until the upgrade is complete. The partners also said a detailed timeline and a holder transition plan will be published before the migration begins.

That matters for token holders and counterparties because chain retirements typically raise practical questions—how assets are handled, how permissions are migrated, and what happens to users who interact with the old system during the transition window. The projects have indicated those details will be addressed prior to the upgrade, but the announcement does not include the timeline itself.

As of now, the operational direction is clear: Trace is moving into Sui, Walrus will be positioned as the default storage layer for DATA Foundation–related applications, and the independent blockchain will be retired once the new setup is ready. The remaining unknown is the execution—specifically, how the upgrade will be sequenced and how holders will transition.

For investors, builders, and data rights stakeholders, the next key items to watch are the published upgrade timeline, the holder transition plan, and any technical milestones confirming how Trace registrations and storage/access controls will function on Sui once the migration is underway.