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Sui Foundation Invests $30 Million in DATA Network AI Protocol

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SUIUSD$1.11 −1.35%

The Sui Foundation is investing $30 million in DATA Network as part of a strategic partnership that will see the artificial intelligence data protocol migrate natively to the Sui (COINBASE:SUIUSD) blockchain. Under the agreement, DATA Network will join the Sui technology stack, integrate with onchain storage platform Walrus, and retire its standalone blockchain. Existing DATA tokens will be converted to Sui-based tokens on a 1:1 ratio, making the Sui Foundation the largest institutional holder of DATA Network alongside PIP Labs and the DATA Foundation.

The partnership strengthens Sui's ecosystem by adding an established AI data tracking network. DATA Foundation pivoted in June to focus on AI training data and launched Trace, an application that tracks usage rights and handles payments for data contributors. Trace has recorded over 250 million contributions and currently handles more than 3 million daily receipts. Integrating with Walrus will provide a default storage layer for DATA Foundation applications, addressing growing demand for consented datasets that comply with regulatory standards.

Investors should monitor the upcoming transition timeline for DATA Network's token migration and chain retirement. The original network will remain operational until the upgrade is complete, with the Sui Foundation planning to publish full details before launching the transition.

Key points

  • Sui Foundation is investing $30 million in DATA Network as the protocol migrates natively to the Sui blockchain.
  • DATA Network will retire its standalone blockchain and migrate existing tokens to Sui on a 1:1 basis.
  • The protocol will integrate with Walrus, which will act as the default storage layer for DATA Foundation apps.
  • DATA Foundation's Trace platform has logged over 250 million AI data contributions and processes over 3 million daily receipts.

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Questions and answers

How much is the Sui Foundation investing in DATA Network?

The Sui Foundation is investing $30 million in DATA Network as part of a strategic partnership to bring the protocol onto the Sui blockchain.

What happens to existing DATA tokens during the migration?

Existing DATA tokens will migrate to the Sui blockchain on a 1:1 ratio, and the original independent blockchain will be retired.

What role does Walrus play in the DATA Network migration?

Walrus will act as the default onchain data storage layer for applications operated by the DATA Foundation.