The DATA Network and its Trace registry are joining the Sui blockchain stack to scale the supply of rights-cleared AI training data. Sui Foundation and The DATA Foundation announced the integration, which will upgrade the DATA Network to run as a protocol natively on Sui while Walrus serves as the default storage layer for DATA Foundation applications.
Trace, an onchain registry for AI training data, has registered more than 250 million contributions since its launch in June and now processes over 3 million receipts per day on average. The integration gives AI labs a single platform to source training data with documented provenance and consent, addressing regulatory requirements including the EU AI Act.
Data sourcing challenges
The next generation of AI models faces constraints in accessing real-world training data. With the open internet largely exhausted as a data source, future models will require data sourced directly from people with their consent and documented provenance. This data—including personal recordings, technical documentation, and customer interactions—requires regulatory compliance and proper compensation for contributors.
Applications currently writing to Trace include Kled, described as the largest opt-in human data marketplace with over 1.5 billion records being onboarded, as well as Numo and Oto, which license data to AI labs and robotics companies.
Technical integration
Sui's object-based architecture allows datasets and their licenses to be managed onchain as programmable objects, with independent transactions executing in parallel and settling in under a second. Walrus provides encrypted storage for large datasets with access controls that ensure data is only readable by licensed buyers.
The integration strengthens provenance guarantees by enabling Trace to store an encrypted, immutable copy of contributed files. This creates tamper evidence, as file hashes can be regenerated from the data itself rather than from supplied metadata.
Strategic backing and protocol transition
Sui Foundation is investing $30 million in the DATA Network, establishing its largest institutional stake in the network. SY Lee, Chairman of Poseidon and CEO of PIP Labs, joins Sui Foundation as Strategic Advisor.
The DATA Network will transition from its independent chain to run as a protocol natively on Sui. The $DATA token continues with one-to-one conversion, maintaining equivalent holder economics and governance rights. Locked and vesting positions carry over unchanged. The existing DATA Network will continue operating until the upgrade is complete.
