Sui Foundation Pledges $30 Million as DATA Network Abandons Its Own Blockchain

Sui’s Parallel Execution Engine: A Catalyst for AI Data

The DATA Network, formerly known as Story Protocol, announced it will shut down its independent Layer 1 chain and rebuild its protocol to run natively on the Sui blockchain. The move, revealed in a press release on Friday, comes after the Sui Foundation committed $30 million to support the transition. The decision follows a broader industry trend of projects migrating to established ecosystems for scalability and developer tools.

The Sui Foundation’s investment will fund the redevelopment of DATA Network’s infrastructure, including integration with Walrus, Sui’s data storage layer. By becoming a native protocol, DATA Network hopes to leverage Sui’s high throughput and low latency, enabling faster AI training data verification and distribution. The shift also aligns with Sui’s strategy to attract data-centric projects that can benefit from its unique parallel execution engine.

Sui’s parallel execution model allows multiple transactions to run concurrently, boosting throughput without sacrificing security. For AI training, where large datasets require rapid validation, this architecture can reduce bottlenecks. Experts say that native integration will simplify smart‑contract development and reduce gas costs for DATA Network users. The partnership also opens the door to cross‑chain data sharing, as Walrus can now interact directly with Sui’s state.

Why the Shift? A Question of Scale and Ecosystem

During the announcement, a DATA Network spokesperson highlighted that the transition would not affect existing users. „Our community will continue to enjoy the same services, only faster and more reliable,” the spokesperson said. The Sui Foundation’s CEO added that the $30 million grant would accelerate the migration timeline and provide resources for testing and security audits.

Why did DATA Network choose to abandon its own chain? The primary driver appears to be scalability. Running a Layer 1 chain requires significant maintenance and constant upgrades to keep pace with network demand. By migrating to Sui, DATA Network can focus on its core product—verifiable AI training data—while relying on Sui’s robust infrastructure. Additionally, the Sui ecosystem offers a growing developer community and a suite of tools that can reduce time to market for new features.

What Happens to the Existing Layer 1 Chain?

Industry analysts note that similar moves have occurred recently, with projects such as Chainlink and Polygon shifting to Ethereum and Solana respectively. The trend suggests that smaller chains struggle to attract developers and users, whereas established platforms provide a ready-made foundation. The $30 million commitment signals confidence in Sui’s ability to support data-intensive applications.

The shutdown of the independent chain will be phased over the next six months. During this period, DATA Network will migrate user data and smart contracts to Sui’s platform. The company will maintain a bridge to ensure seamless transfer of assets. Users will receive instructions and support to move their holdings without loss. The transition is expected to preserve all existing data integrity and security protocols.

The Sui Foundation will also provide technical assistance to help DATA Network developers rewrite their contracts in Sui’s Move language. This collaboration aims to reduce migration friction and encourage rapid adoption. The partnership could set a precedent for other data projects considering similar moves.

Looking Ahead: A New Era for Verifiable AI Data

The migration could accelerate the adoption of verifiable AI training data across industries. With Sui’s high throughput, data providers can publish datasets more quickly, and AI models can access them with minimal delay. The partnership may also attract new investors, as the combined resources of DATA Network and Sui create a more compelling proposition for venture capital.

In the long term, the move could influence the broader blockchain ecosystem. If successful, it may encourage other niche projects to evaluate the benefits of native integration versus maintaining independent chains. The $30 million investment demonstrates that established foundations are willing to support specialized projects, potentially reshaping how blockchain ecosystems evolve.

Frequently Asked Questions

What is the main benefit of moving to Sui? The primary advantage is scalability. Sui’s parallel execution engine allows faster transaction processing, which is critical for AI training data that requires rapid validation and distribution.

Will users lose their data during the migration? No. DATA Network will provide a bridge and detailed instructions to transfer assets safely. The migration plan includes safeguards to preserve data integrity.

How long will the transition take? The shutdown of the existing Layer 1 chain is planned over six months, with phased migration and support from the Sui Foundation throughout the process.