Company: IPST
Filing Date: 2025-08-26
Form Type: S-1
Source: 0001213900-25-080839
Chunk: 195

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-26
Form: S-1
Chunk 195
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 “stake” $IP as collateral (like a security deposit) that shows the network that it has “skin in the game.” Holders of $IP tokens can also delegate their $IP to another validator, thus providing additional stake for that validator, in return for a share of the validation rewards. The validator operates a network of powerful, always -onlinecomputers that do the actual work of checking transactions on the blockchain, voting on which transactions are valid, and helping to add new “blocks” to the blockchain. Validators are randomly selected to propose a new block of transactions to be added to the Story blockchain. When a participant attempts a transaction, that participant is required to pay a minimum “gas” fee. A participant can opt to pay an additional fee to ensure that its transaction is added to the blockchain more quickly. These fees are denominated in $IP. The validator chosen to propose a block will (when that block is successfully confirmed by the other validator nodes) receive the gas fees for all transactions in the block (known as “execution layer rewards”). In addition, the Story blockchain automatically issues $IP as rewards to validators who successfully propose a block. The more cryptocurrency a validator has staked to it (including delegated stake), the more likely it is that such validator will be selected to validate a block and thus the more it earns. Validators market themselves to delegators through maintaining uptime and maximizing gas fees. Staking and Validation as a Revenue Source An owner of cryptocurrency can put that crypto to work instead of just letting it sit idle. One of the main ways to do this is called staking, which is similar to earning interest in a savings account — except instead of a bank paying interest to the account holder, the blockchain network pays rewards to the owner of the cryptocurrency. To “stake,” the owner sets aside some of its cryptocurrency and commits it to the blockchain network. This is similar to making a long -termdeposit to help run the system. By staking, the owner’s cryptocurrency is used to support the network — checking transactions, keeping records straight, and making the system secure. However, the owner is not required to do this work itself; it can “hire” or “partner” with a validator to do the technical heavy lifting. If the owner does not want to run its own validator, it can delegate its cryptocurrency to another validator. That validator would then earn rewards and share most of them back with the owner, keeping a small cut as a fee. In return for helping keep the system safe and running,