Company: IPST
Filing Date: 2025-12-12
Form Type: S-1/A
Source: 0001213900-25-121277
Chunk: 185

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-12
Form: S-1/A
Chunk 185
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 Tokens on the chain we feel will be more successful. In the event we receive tokens in an airdrop ( i.e., a distribution of digital assets other than $IP Tokens), we would evaluate whether such airdropped $IP Tokens were more likely to accrue value outside of our core $IP Tokens treasury. We cannot confirm how we would react to any particular fork or airdrop; however, we plan to disclose our decision regarding any fork or material airdrop periodically after such decisions are made. Our Staking Program Pursuant to our treasury strategy, in September 2025 we began using the vast majority of our $IP Tokens in our treasury reserve to generate a return through various opportunities, with the most significant portion being allocated to our staking program. We began our staking efforts of our $IP Tokens in late September 2025 after several weeks of incremental testing. Our validator operations were launched following Board -levelapproval of a comprehensive security and information security framework and were funded from our existing resources, with costs limited to AWS hosting and security monitoring, none of which are material to our financial position. The primary challenges associated with validator operations are maintaining uptime and ensuring resilience against protocol -levelslashing. We mitigate these risks through redundancy, continuous monitoring, and defense -in-depthsecurity controls. Most of the staked $IP Tokens we hold are currently staked to our own validator nodes on the Story Network. 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. We plan to move nearly all of our $IP Tokens to this custodied validator early in first quarter of 2026. In doing so, we will then be able to stake the $IP Tokens under longer -termcontracts to increase yield. 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