Altcoin Set to Receive $30M Investment Is Leaving Its Own Chain: What Happens to Its Tokens?

DATA Network, which Sui Foundation plans to invest $30 million in, plans to shut down its independent blockchain, move to Sui, and transfer existing DATA tokens to the new network at a one-to-one ratio.

The partnership announced for DATA Network, which focuses on AI training data, will change the network’s operating infrastructure alongside its funding. According to a statement DATA Foundation shared with The Block, Sui Foundation will become the network’s largest institutional token holder; existing stakeholders include PIP Labs and DATA Foundation.

Existing tokens will be transferred one to one

As part of the transition, DATA Network will become a protocol running on Sui rather than an independent chain. The existing network will continue operating until the migration is complete, after which the standalone chain will be decommissioned.

DATA tokens will be transferred to Sui at a one-to-one ratio. Thus, for token holders, the most direct consequence of the partnership will be a change in the network on which their assets are used. A detailed migration timeline will be announced before the upgrade.

Walrus will be the default data storage layer for applications operated by DATA Foundation. In June, the organization shifted its focus from general intellectual property infrastructure to AI training data.

The source and payment of AI data will be tracked

The partnership aims to expand data sourcing through DATA Network’s Trace system. Launched in June, Trace records the origins of AI training data and its usage rights, while also enabling payments to the people who provide the data.

According to the foundation’s statement, the system has recorded more than 250 million contributions since its launch and processes an average of more than 3 million transaction receipts per day. The new infrastructure is intended to expand AI labs’ access to real-world data for which usage permission has been granted.