Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 193

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 193
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 and we may determine to sell the $IP tokens from one chain in order to purchase additional $IP tokens on the chain we feel 114 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. All of the staked $IP tokens we hold are currently staked to our own validator nodes on the Story Network. We do not currently, and have no plans to, delegate tokens to third -partyvalidators. 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. We maintain possession and, except during deactivation periods as discussed below, control of our $IP tokens at all times when they are staked and only engage in native staking. Native staking is generally considered a lower risk activity than liquid staking or staking through third -partyprotocols, as it is done in -protocol( i.e., is built into $IP token itself). 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