Company: IPST
Filing Date: 2025-12-23
Form Type: 424B3
Source: 0001213900-25-125341
Chunk: 186

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-23
Form: 424B3
Chunk 186
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 In early December 2025, we established a new validator under a custodian account held at Crypto.com, to which account we moved 1million $IP Tokens from our own wallet for testing on the new validator. In December 2025, we also established new custody arrangements with Bitgo.com and Kraken to give us flexibility and diversity for our future staking operations. We plan to move nearly all of our $IP Tokens to our custodied validators early in first quarter of 2026; however, we have not yet determined the amounts or percentages of our $IP Tokens that will be allocated to each custodial account. In doing so, we will then be able to stake our $IP Tokens under longer -termcontracts to increase yield. We plan to continue evaluating additional custody arrangements with new custodians as our staking program progresses. The Story Network penalizes bad behaviors by validators (specifically, double -signingblocks and downtime) by slashing out a fraction of their staked tokens. If a validator double signs for a block, the validator will get slashed 5% of its tokens and get permanently jailed, which is also referred to as “tombstoned.” If a validator is offline for too long and misses 95% of the last 28,800 blocks, the validator will get slashed 0.02% of its tokens and get jailed. A validator will also get jailed after self -undelegationif the validator’s remaining self -delegationamount is smaller than the minimum self -delegation. A jailed validator cannot participate in the consensus and earn any rewards; however, a jailed validator can unjail itself after a cooldown time, which is currently set at ten minutes. After ten minutes, the validator can call Story’s staking contract to unjail itself if its stake is more than the minimum stake amount (1,024 $IP Tokens), after which it can participate in the consensus again if it is still within the top 64 validators. One of our validator nodes incurred a slashing event during an early testing phase of our validator and prior to our validator being fully funded. That event did not have a material impact on the number of $IP Tokens or other assets we hold, and no additional slashing event or penalty has occurred with respect to our validator since that time. The Story Network currently offers incremental staking rewards for $IP Tokens staked in a longer -termsmart contract. To increase the yield on our $IP Tokens, our current staking strategy is to maintain a portion of our