[Proposal] SIP-00009: Emissions Recalibration & Locked Staking Multiplier Adjustment

Proposals
1

Summary

This proposal reduces annual token emissions from approximately 25 million to 15,315,000 IP tokens and decreases the locked token staking reward multiplier from 0.5x to 0.025x. These changes intend to adjust the emissions resulting from higher-than-expected block production under a per-block emissions schedule and align incentives for long term sustainability of the network.

Motivation

Story’s original design targeted 20 million IP tokens emitted annually, based on an expected 10,368,000 blocks per year. Engineering optimizations have improved block production to approximately 13,140,000 blocks per year — a testament to network performance gains. However, the per-block emission rate remained unchanged, resulting in approximately 25 million tokens emitted annually.

Story’s 0.5x locked staking multiplier is a unique mechanism that allows locked token holders to earn staking rewards at a reduced rate. As locked tokens transition to unlocked status over time, aligning incentives toward unlocked staking promotes healthier stake distribution across the validator ecosystem. Reducing this multiplier to 0.025x aligns locked token holders with the long term vision of Story while maintaining voting power for block production and, when available, onchain governance voting. This new multiplier change also redirects the majority percentage of staking rewards toward unlocked token stakers.

With the locked staking multiplier change, and without a corresponding reduction in total emissions, this shift would significantly inflate APY for unlocked token stakers. To recalibrate this, annual emissions will need to be updated from 20,000,000 IP tokens per 10,368,000 blocks, to 15,315,000 IP tokens per 13,140,000 blocks. This achieves two goals: it maintains a sustainable 6-7% APY for unlocked stakers rather than artificially boosting yields, and it reduces overall inflationary pressure on circulating supply.

Proposal

Token Emissions Adjustment

Parameter Pre-launch Settings Actual Rate Adjustments Proposed
IPs minted per block 1.9290 IP 1.9290 IP 1.1657 1.1655 IP
Blocks (per year estimates) 10,368,000 (estimated) ~13,140,000 (actual) 13,140,000
Annual emissions 20,000,000 IP (estimated) ~25,347,060 IP (actual) 15,315,000 IP

The emissions per block is now recalculated to be 1.1657 1.16552511 IP tokens per block produced to achieve the target annual emission of 15,315,000 IPs.

Locked Staking Multiplier Adjustment

Parameter Current Value New Value
Locked flexible period multiplier 0.5x 0.025x

Rationale

Reducing the locked staking multiplier to 0.025x redirects rewards toward unlocked token holders, promoting healthier stake distribution. The corresponding emissions recalibration to 15,315,000 IP tokens per year ensures this shift maintains a sustainable 6-7% APY rather than artificially inflating yields.

Voting power remains 1:1 between locked and unlocked validators. Operators in the active set choosing to continue running locked validators will retain their governance participation capabilities.

Drawbacks

Locked token stakers and locked validator operators will experience significant reward reduction, potentially causing some Validators to exit the active set and operate Unlocked Validators instead. This is an expected and healthy outcome as locked tokens transition to unlocked status.

Alternatives Considered

  • Complete elimination of locked staking rewards: Rejected as too disruptive to existing locked validators
  • Gradual phase-out over multiple upgrades: Rejected due to implementation complexity
  • Maintaining current emissions: Rejected as it would not address long-term sustainability concerns

User Impact

For Unlocked Token Stakers: Yields are expected to remain competitive in the 6-7% APY range for flexible staking, with higher returns available through fixed staking periods.

For Locked Validators and Delegators: Validators accepting locked delegations will see significantly reduced rewards. Delegators to locked validators will receive proportionally lower returns.

Token Unlock Context: As locked tokens transition to unlocked status, stake distribution is expected to naturally shift toward the unlocked validator set–a healthy evolution for network decentralization.

We welcome community discussion below. A validator community call will be scheduled within 24-48 hours of this post to address questions directly.

:right_arrow: GitHub Reference: SIP-00009: Emissions and Locked Staking Multiplier Adjustment by jack-piplabs · Pull Request #11 · storyprotocol/SIPs · GitHub

35 Likes
2

Even though we are currently operating a locked-type validator, we support this proposal and believe the decision is correct.

Given that block production is higher than originally assumed, the current per-block emissions schedule pushes inflation beyond the intended design. Adjusting emissions to match actual network performance is the right move for long-term sustainability.

We’ve also seen other ecosystems struggle when large amounts of locked supply created significant market pressure through staking rewards. We should learn from those mistakes early.

With Story’s design of locked and unlocked validator sets, this transition challenge was inevitable as tokens begin to unlock and stake naturally shifts toward the unlocked set. In our view, it’s better to address this earlier, reduce inflationary pressure, and guide the transition in a more controlled way.

Operationally, we are ready to spin up an unlocked-type validator. We’d appreciate a smooth and fast re-delegation path so our validator does not remain in the inactive set for long and our infrastructure doesn’t sit idle.

Crouton Digital (Story Protocol Validator)

5 Likes
3

With a clear plan from the foundation and ecosystem to support both locked and unlocked validators in continuing operation I think this will largely help the economic sustainabillity of the chain and the voting power distribution as the token-supply curve starts unlocking.

We will vote in favour.

best,
Gijs
Lavender.Five Nodes

1 Like
4

Hi folks - we currently operate a locked-type validator, but we support this proposal and believe it’s the right decision. Recalibrating emissions to actual network performance is the correct move for long-term sustainability.

The incentive shift toward the unlocked set is inevitable, and it’s better to address it earlier to reduce long-term pressure and manage the transition more smoothly.

Operationally, we’re ready to spin up an unlocked-type validator. We’d appreciate a fast and clear migration/re-delegation path.

cryptomolot validator

1 Like
5

Hey guys!

We’re in favor of this proposal and think the reasoning is solid: emissions should be recalibrated to match the network’s higher-than-expected block production while easing long-term inflation pressure. Dropping the locked staking multiplier to 0.025x is a sensible way to nudge stake toward the unlocked validator set as locked tokens naturally mature over time. With the emissions adjustment alongside it, unlocked staking returns stay in a healthy 6–7% range instead of getting artificially boosted. Overall, this better aligns incentives with the network’s long-term sustainability while keeping 1:1 voting power for block production and preserving governance participation for active operators.

6

Hi team,

At KYVE Foundation, we’ve been following the network’s progress closely, and it’s honestly great to see that engineering optimizations have pushed block production past the original estimates. That’s a “good problem” to have.

Regarding the proposal, we’re fully in support of these adjustments. Relying on a per-block emission schedule can be tricky when performance improves this much, so recalibrating now to avoid unintended inflation is the right call for the ecosystem long-term value.

7

We generally support the direction of SIP-00009 and understand the need to recalibrate emissions for the long-term sustainability of the Story network.

That said, we are concerned that the proposed changes may be too abrupt. A significant reduction in the locked staking multiplier could incentivize many validators to transition from locked to unlocked staking, as locked validators would be taking higher long-term risk while receiving comparatively lower returns.

While we understand and support the decentralization goals behind this proposal, we would like to raise a potential concern:
if the total amount of locked tokens remains relatively high while the number of locked validators decreases, locked stake and governance power could become increasingly concentrated among a small number of validators.

1 Like
8

Edouard from Stakin by The Tie here. Thanks for laying out the reasoning behind SIP-00009. Here is some feedback from our side as a Story validator.

The emissions recalibration makes sense given the higher block count and the need to keep inflation and APY in a sustainable range

On locked staking, we see the multiplier reduction as a natural step as the network matures and locked supply progressively unlocks. This incentivises the redistribution of formerly locked stake into unlocked stake.

In that context, we recently launched our unlocked token validator after previously operating only a as a locked validator.

Overall, we believe that this proposal makes sense and is aligned with the long-term direction of the network. Looking forward to seeing how the transition plays out.

2 Likes
9

Hi everyone!

Endorphine Stake supports this proposal because excessive emission really devalues $IP. We have seen this already on other networks.

1 Like
10

Hello story team,

We support this proposal. Recalibrating emissions to reflect actual block production reduces inflation pressure, while lowering the locked staking multiplier to 0.025x helps smoothly shift stake toward the unlocked set. This keeps staking yields in a healthy 6–7% APY range while preserving 1:1 voting power and governance participation.

1 Like
11

ContributionDAO supports SIP-00009 and agrees that recalibrating emissions to reflect actual block production is necessary for long-term network sustainability.

We also support the adjustment to the locked staking multiplier, as it realigns incentives toward unlocked staking and supports a healthier validator set over time.

Overall, we believe this proposal is a positive step for the Story ecosystem and are in favor of its adoption.

12

As DragonStake, we support SIP-00009.

We view this change as an important step toward greater discipline in emissions, which is ultimately essential to keep the network’s monetary policy sustainable over the long term. Giving the project time to mature and create real onchain value is key—over time, we believe a larger share of incentives should increasingly come from the network’s own economic activity rather than from high emissions.

For validators and stakeholders who are genuinely committed to Story’s long-term success, this proposal is a very positive signal. In our view, it reinforces long-term alignment and helps build a healthier, more sustainable ecosystem.

13

We are in support of this proposal and glad to see this being tackled preemptively.

14

Even though TrustedPoint operates an unlocked validator, recalibrating emissions and lowering the locked multiplier feels like the right move for long-term sustainability and healthier stake distribution. Also, community stakers don’t have access to locked tokens, so regular delegators shouldn’t be affected. Glad to see broad validator alignment on this.

15

As initially planned emission rate did not account for the engineering achievements and tokens volume overshot the expectations the rate has to be adjusted. It makes sense to incentivize unlocked staking with more rewards compared to locked to keep liquid tokens in the staking, which will help keep chain security high and potentially smoothen the voting power distribution curve.

Nodes.Guru supports SIP-00009 proposal.

17

ITRocket team support SIP-00009.

Even though we currently operate a locked validator, we agree that recalibrating emissions and adjusting the locked staking multiplier is a reasonable step toward long-term sustainability. Keeping inflation under control and gradually rebalancing incentives between locked and unlocked staking helps maintain a healthy validator set as the network matures.

18

We support SIP-00009 proposal, and as a locked validator, we have the infrastructure ready to make the shift to an unlocked validator type.

The fact that almost all operators are in favour is a good signal of shared values aligment, which demonstrates the strength and reliability of the network at the social consensus level.

19

Republic supports SIP-00009. As a locked validator operator ourselves, we recognize that this proposal may directly affect our current incentive structure. Nevertheless, we believe recalibrating emissions and adjusting the locked staking multiplier is the right move for the network’s long-term health. Sustainable tokenomics and a balanced incentive model between locked and unlocked staking will benefit the entire ecosystem. We’re in favor.

20

Krews supports SIP-00009. Lowering per-block emissions and updating the locked staking multiplier reduces extra inflation and helps keep rewards more balanced over time. We believe this is better for the long-term health of the network and the validator set.

21

Strong support from SpiderNode for SIP-00009! Aligning emissions and staking multipliers for long-term sustainability is spot on.