Palo Alto-based blockchain startup Story Protocol has rebranded as DATA Foundation, pivoting entirely from the broader intellectual property market to AI training infrastructure. Kled founder Avi Patel joins as chief data officer in an advisory role.
Onchain Registry for AI Training Data
The DATA Foundation will operate the DATA Network, an onchain registry designed to verify the origin, licensing and consent history of datasets used to train AI models. Patel said the shift responds to mounting copyright lawsuits against AI developers and Big Tech, who face pressure to prove datasets were collected with proper consent. Blockchain can provide a transparent record of ownership and provenance for training data.
$140M Funding and Token Delay
The rebranding follows Story Protocol's $140 million in cumulative venture funding led by a16z crypto. Patel confirmed the figure but declined to comment on a reported $2.4 billion valuation by Gate. In February, the project faced controversy over a token unlock delay; co-founder Sy Lee defended the decision, saying its blockchain needed more time to build usage.
Integration with Kled AI and 1.5 Billion Records
The launch includes direct integration with Kled AI, an opt-in human data marketplace, registering 1.5 billion user-contributed records. Andrea Muttoni takes over as CEO of the DATA Foundation.
Trace: Public Audit Without Data Exposure
DATA Foundation plans to launch Trace, a public audit and search platform that creates unalterable cryptographic receipts for individual data contributions. Patel said, "Trace publishes the audit record, not the data. What's public is the receipt: content hash, consent terms, licensing, payment proof and timestamps." Underlying data remains inside the marketplace and requires a licensed transaction to access.
Poseidon and Real-Time Stablecoin Payments
The network also incorporates Poseidon, an AI data processing project that cleans and scores human data. Its contributor app Numo pays users stablecoins in real time for authenticated data. Compensation ties directly to completed transactions, not advanced against future sales. Kled also offers fiat payout rails alongside the stablecoin option.
Fraud-Detection Protocol in Development
The team is focusing on an upcoming fraud-detection protocol to confirm data is real, human and original, not pirated or AI-generated. Patel stated, "Labs won't license data they can't verify. Solving that is the whole game."