Validator Performance Overview

In December 2025, IP Strategy transitioned its validator operations to a custodied, long-term staking model. This strategic move is expected to significantly boost blended staking yields compared to previous flexible arrangements while ensuring institutional-grade custody and security. Initial results from this transition show promise, though the full impact on yields is expected to materialize in future reports.

Since its launch on September 18, 2025, IP Strategy’s validator has maintained an impressive uptime, crucial for securing the Story network's security and transaction validation. Below are the key performance metrics for the validator from December 1 to December 31, 2025:

• $IP tokens earned from Staking: 247,662.50 (Total: 913,569.39)
• Validator uptime: 99.98% (99.8% average)
• Fees ($IP) earned: 14,160.76 (Total: 50,131.92)

As of December 31, 2025, the company has staked 39.9 million unlocked $IP tokens, yielding cumulative validator rewards valued at approximately $4.68 million based on recognized cost basis.

Business Model Snapshot

IP Strategy's validator operations are a central revenue stream for the company, which generates on-chain yield through transaction validation and network security. Key components of the business model include:

• Rewards in $IP tokens based on staked weight and network uptime.
• Commission income from third-party $IP token holders delegating to the company's validator.

This dual revenue model enhances sustainability and scalability, closely tied to the Story ecosystem's growth. The current yield from staking 39.9 million $IP tokens is estimated at 5.64%, with potential annual revenues projected around $3.78 million assuming a token price of $1.68.

Highlights from the Story Ecosystem

The end of 2025 marked significant advancements in the Story ecosystem, including updates on network milestones, protocol enhancements, and increased involvement from creators and data providers. Notable highlights include:

• Poseidon: An AI-native data infrastructure that supports rights-cleared data sourcing for AI training.
• Aria: Successfully launched on-chain, royalty-bearing music assets, showcasing strong demand for compliant and yield-generating IP assets.

The ecosystem's progression underscores IP Strategy's strategic positioning within the growing market for programmable intellectual property, supported by the increasing demand for rights-cleared data and digital assets.

Looking Ahead

IP Strategy plans to maintain its commitment to transparency by continuing to release monthly updates on validator performance and ecosystem developments. The company anticipates that as the Story ecosystem expands, there will be enhanced staking participation and transaction volume, further reinforcing its revenue potential.

About IP Strategy

IP Strategy (Nasdaq: IPST) is a pioneering company in the Nasdaq market that operates a validator for the Story Protocol while holding $IP tokens as primary reserve assets. The company provides investors with exposure to the expansive $80 trillion programmable intellectual property economy in a regulated equity format. Its treasury of $IP tokens directly facilitates on-chain registration, licensing, and monetization strategies.

About Story

Story functions as an AI-native blockchain network that underpins the $IP token, making intellectual property programmable and traceable in real-time. With backing from prominent investors, Story has quickly emerged as a leading infrastructure for tokenized intellectual property, enabling creators and businesses to turn diverse content into legally enforceable digital assets.

Forward-Looking Statements

This article may contain forward-looking statements in accordance with the Private Securities Litigation Reform Act of 1995, including expectations regarding future performance and revenue potential. Such statements involve risks and uncertainties that could cause actual results to differ materially from projections.