Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 198

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 198
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 stake in the network. The rewards are funded by inflationary issuance of new tokens and transaction fees collected on the network. The specific amount each validator and staker receives depends on, among other things, their share of the total stake, the validator’s uptime and performance, and the overall network conditions. The historical range of staking rewards on the Story Network has varied due to differing levels of network congestion and protocol parameters. The actual annualized reward rate has fluctuated over time, reflecting changes in network activity, inflation rates and protocol adjustments. Staking rewards on $IP tokens are distributed at regular intervals. At the end of each epoch, with one epoch being roughly two days, the reward is calculated. The reward is automatically distributed at the beginning of the subsequent epoch. This regular reward frequency ensures that participants receive their share of rewards in a timely manner, reflecting their contribution to network security and transaction validation. Use of Custodians and Storage of $IP Tokens To date, there are a limited number of custodians that support staking of $IP tokens and, as a result, we currently self -custodyto hold our $IP tokens. We have implemented strict governance protocols to ensure security of the assets we hold. We are in active discussions with several custodians that are qualified to act as such under SEC rules in an effort to obtain support for staking of our $IP tokens. Following such time as one or more of such qualified custodians provide support for staking $IP tokens, we will evaluate such custodians’ financial positions, insurance coverage, terms, level of service and security practices and may custody some or all of our $IP tokens with one or more of such custodians. Intellectual Property on the Story Network Like some other blockchain networks such as Ethereum and Solana, the Story Network supports the deployment of smart contracts — that is, programmatic code that executes on every computer in the network and can instruct the transmission of information and value based on a sophisticated set of logical conditions. But while networks like Ethereum and Solana support general -purposesmart contracts, the Story Network is expressly designed for intellectual property content -centricuse cases, with a protocol architecture optimized for representing ownership, permissions and usage rights associated with digital works. These contracts can encode license terms, manage royalty flows, register authorship claims or facilitate composability among digital assets ( e.g., songs 117 sampled in a remix or images used in a larger work). This allows for a wide range of creative, legal and commercial relationships to be