SIP‑00010: WHAT 32 IP AND 1 IP MEAN FOR STORY STAKERS
Atlas proposed a major quality‑of‑life upgrade for IP stakers. A new governance proposal, SIP‑00010: Reducing Staking Threshold, would cut minimum staking amounts and reward thresholds by more than 90%!. It will drastically reduce fees by 90% as well. This is a big deal for anyone who holds IP and wants to participate in securing the network without needing thousands of tokens.
In this post we’ll walk through SIP‑00010, what it changes, and what it means for you as an IP holder, delegator, and for validators on Story. If Story is new to you, be sure to check out our explainer series.
What SIP‑00010 actually changes
SIP‑00010 focuses on three main levers for IP token staking:
The minimum size of stake/unstake/redelegate transactions.
The minimum amount of rewards that must accumulate before they are automatically distributed.
The fees charged for staking transactions.
1. MINIMUM STAKE, UNSTAKE, AND REDELEGATE AMOUNTS
Right now, Story requires a minimum of 1024 IP for three core actions:
Staking IP.
Unstaking IP.
Redelegating IP from one validator to another.
WHY THE STAKING MINIMUM MATTERS
In our initial forum proposal we point out how this minimum prevents the average Joe from participating, prevents validators from growing stake, and thus prevents the network from being more secure. The community agreed and the Story team listened!
SIP‑00010 proposes to reduce that floor from 1024 IP to 32 IP for all three actions:
Minimum stake amount: 1024 IP → 32 IP.
Minimum unstake amount: 1024 IP → 32 IP.
Minimum redelegate amount: 1024 IP → 32 IP.
In other words, instead of needing a four‑figure IP balance to do anything meaningful with staking, you’d be able to move in 32 IP chunks.
2. Minimum reward distribution threshold
Today, rewards are automatically distributed only when a delegator’s accumulated rewards reach 8 IP. If you have a small stake, it can take a long time to hit that 8 IP threshold and see anything show up in your wallet.
SIP‑00010 proposes to reduce this auto‑distribution threshold from 8 IP to 1 IP:
Auto‑reward distribution threshold: 8 IP → 1 IP.
The distribution queue capacity (32 delegators per block) stays the same.
The protocol will still batch reward distributions to protect performance, but it will now “flush” rewards much more often for small holders.
WHY THE REWARD MINIMUM MATTERS
With a 1 IP threshold, smaller delegations will see rewards land much more frequently, which makes staking feel real instead of purely theoretical. Many stake because they need the income and this provides those people with cash flow.
You still receive all accrued rewards when you unstake, so nobody was “losing” rewards before, but this change dramatically improves the user experience day‑to‑day.
3. Staking operation fees
Story currently charges a 1 IP fee for a range of staking‑related operations. On a percentage basis, that’s a substantial amount when you’re dealing with smaller positions.
SIP‑00010 proposes to reduce the fee for all of these to 0.1 IP:
Stake
Claim rewards
Redelegate
Unstake
Each of these operations would go down from costing 1 IP to 0.1 IP.
WHY STAKING FEES MATTER
For active stakers 1 IP per operation adds up quickly.
Dropping fees to 0.1 IP makes normal maintenance and risk management affordable, especially once the 32 IP minimums are in place.
WHAT THIS MEANS FOR SMALL & MID-SIZE IP HOLDERS
If you’re a smaller IP holder or still accumulating a position, SIP‑00010 changes your life more than anyone else’s.
YOU NO LONGER NEED A FOUR-FIGURE IP BALANCE TO PARTICIPATE
With a 32 IP minimum:
You can start staking much earlier instead of waiting until you hit 1024 IP.
You can redelegate gradually from one validator to another instead of “all or nothing.”
You can test the system with a small delegation first, then scale up as you gain confidence.
This kind of granularity is critical for retail‑sized users who can’t or won’t put thousands of IP to work in a single transaction.
REWARDS FEEL REAL SOONER
Lowering the reward distribution threshold from 8 IP to 1 IP means:
You’ll see rewards hit your address more frequently, even with relatively modest stakes.
The staking experience looks and feels more like other chains most users are familiar with: you stake, and not too long after, you see rewards.
This is a big UX win, especially for people onboarding into Story from other ecosystems.
MAINTENANCE STOPS FEELING SO EXPENSIVE
When fees for actions like staking more or redelegation are 1 IP:
Smaller users might avoid making healthy changes (like leaving a poor‑performing validator) because it “costs too much” to fix.
Risk management becomes economically unattractive.
At 0.1 IP per transaction, it reduces the friction between profit and normal portfolio management.
WHAT THIS MEANS FOR VALIDATORS & THE NETWORK
SIP‑00010 isn’t just a gift to stakers. It also has important implications for validators and Story’s long‑term health.
MORE NATURAL GROWTH OF THE DELEGATOR BASE
Lowering the thresholds makes it possible for:
More delegators to enter earlier, instead of waiting until they accumulate 1024 IP, which many can’t afford.
Validators to grow stake more organically from a broader base, not just a few whales or institutions.
For validators like Atlas, that’s a better foundation: more delegators, more community alignment, fewer single points of failure.
BALANCED AGAINST PERFORMANCE & SPAM RISKS
The team explicitly mentions that they scoped this proposal to things they can change without opening the floodgates to spam or over complicating the system:
They did not adopt manual reward claiming at any amount because feeless micro‑claims could be abused, and adding a fee would feel terrible for tiny rewards.
They did not implement advanced “guardrails instead of higher minimums” (like rate limits or dust floors) in this SIP because those require extra design and testing; instead, they focused on base thresholds and fees.
That tradeoff is important to keep in mind: SIP‑00010 is intentionally modest and pragmatic. This is a first step toward inclusion. Further improvements can be made down the road.
WHERE ATLAS STANDS ON SIP‑00010
From our perspective, SIP‑00010 is a major step in the right direction for Story’s staking UX.
It dramatically lowers the barrier for smaller IP holders to start staking and getting paid to help secure the network.
It makes reward flows feel more tangible by dropping the distribution threshold to 1 IP.
It makes routine operations affordable, so people can safely manage risk and move their stake between validators.
We’ve been vocal in governance discussions about wanting even more accessibility and better compounding for small stakers. We’d like to see the minimum removed to add IP to one’s initial stake. We feel this allows people to compound their returns which increases network security, while still eliminating spam because of the initial 32 IP staking requirement.
Our stance is simple:
Support SIP‑00010 now as a clear, high‑impact improvement for today’s users.
If the proposal can be adjusted to remove the restaking minimum, sweet! That allows the bonded ratio (outstanding token supply that’s staked) to grow quicker.
Continue to explore, with the community and Story team, how to make staking and compounding even more friendly for smaller IP holders in follow‑up upgrades.
In the meantime, Atlas will keep:
Running a reliable Story validator aimed at long‑term alignment with the protocol.
Publishing clear, no‑nonsense explanations of governance changes like SIP‑00010 so you don’t have to parse every forum thread yourself.
Helping delegators understand how to participate in staking and the ecosystem as a whole.
If you’d like a deeper dive into how these changes affect your specific IP position, or you’re an IP project thinking about where to stake and why, please reach out.
FREQUENTLY ASKED QUESTIONS
What is SIP‑00010 in Story Protocol staking?
SIP‑00010 is a Story Protocol governance proposal that reduces the minimum staking amount and reward distribution threshold for IP stakers. It’s designed to make Story staking more accessible for smaller holders while preserving network performance.
How does SIP‑00010 change the minimum IP needed to stake on Story?
Currently Story requires a minimum of 1024 IP to stake, unstake, or redelegate, which effectively excludes most token holders from participating. With SIP‑00010, the minimum staking amount drops to 32 IP, allowing many more users to secure the network and earn IP staking rewards.
What does the new 32 IP minimum mean for small IP holders?
The new 32 IP minimum means that everyday users no longer need a four‑figure IP balance just to start staking on Story. Smaller IP holders can delegate in realistic increments to grow their staking position, instead of waiting until they accumulate 1024 IP.
What is the new 1 IP reward distribution threshold in SIP‑00010?
SIP‑00010 lowers the automatic reward distribution threshold from 8 IP to 1 IP. This means that once a delegator’s accumulated rewards reach 1 IP, the protocol will automatically distribute them, providing more regular income for those who need it.
Why does Atlas think the restaking minimum should be eliminated?
In our forum post we explain how the initial staking requirement of 32 IP prevents spam and controls growth of the network. Lowering the restaking minimum from 32 IP allows delegators to compound their returns, allows validators to grow faster and potentially increase profitability, and increases the bonded ratio and thus network security.
Do I lose any IP rewards if my balance is below 1 IP?
Nope. IP staking rewards continue to accrue on‑chain even if they have not yet reached the 1 IP distribution threshold. When you unstake your IP tokens, you still receive the full amount of rewards you have earned, regardless of how often intermediate distributions occurred.
How does SIP‑00010 affect staking operation fees on Story?
With SIP‑00010, common operations like staking, redelegating, and unstaking have fees reduced from 1 IP down to 0.1 IP. This makes normal portfolio management and risk management much more affordable for Story stakers.
Why didn’t Story make the minimum staking amount lower than 32 IP?
The current proposal focuses on a pragmatic balance between accessibility and network health. A 32 IP minimum for stake, unstake, and redelegation significantly improves UX while limiting spam and state bloat. Atlas feels the proposal can go a step further in its current form by removing the restaking minimum.
What should I do now as a Story IP holder?
If your stack is below 1024 IP and you’ve been waiting on the sidelines, get ready to stake! We’d be thrilled to have you as a delegator.
How can I choose the best Story validator after SIP‑00010?
When choosing a Story validator, look beyond headline APY and focus on uptime, community participation, slashing history, and education. Validators that publish clear guides, explain governance proposals like SIP‑00010, and maintain a transparent operational track record are generally better long‑term partners for your staked IP tokens.
Nothing we say is financial advice or a recommendation to buy or sell anything. Cryptocurrency is a highly speculative asset class. Staking crypto tokens carries additional risks, including but not limited to smart-contract exploitation, poor validator performance or slashing, token price volatility, loss or theft, lockup periods, and illiquidity. Past performance is not indicative of future results. Never invest more than you can afford to lose. Additionally, the information contained in our articles, social media posts, emails, and on our website is not intended as, and shall not be understood or construed as financial advice. We are not attorneys, accountants, or financial advisors, nor are we holding ourselves out to be. The information contained in our articles, social media posts, emails, and on our website is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation. We have done our best to ensure that the information provided in our articles, social media posts, emails, and the resources on our website are accurate and provide valuable information. Regardless of anything to the contrary, nothing available in our articles, social media posts, website, or emails should be understood as a recommendation to buy or sell anything and make any investment or financial decisions without consulting with a financial professional to address your particular situation. Atlas Staking expressly recommends that you seek advice from a professional. Neither Atlas Staking nor any of its employees or owners shall be held liable or responsible for any errors or omissions in our articles, in our social media posts, in our emails, or on our website, or for any damage or financial losses you may suffer. The decisions you make belong to you and you only, so always Do Your Own Research.
