Exploring the future potential of Walrus (WAL) Decentralization storage

In the current rapid development of blockchain technology, decentralized storage, as an important infrastructure of the Web3 ecosystem, is receiving increasing attention. Walrus, as an innovative decentralized storage and data availability protocol, has become a focal point in the industry due to its unique technical architecture and strong ecological support. Its native token, WAL, is the core driving force of this ecosystem. This article will delve into the technical advantages of Walrus, the functions of the WAL token, and its potential in the cryptocurrency market, providing you with a comprehensive understanding of this emerging project.

Walrus: Redefining Decentralized Storage

Walrus is a decentralized storage protocol built on the Sui blockchain, incubated and developed by the Mysten Labs team. It focuses on addressing the high costs, low efficiency, and centralization issues of traditional storage solutions, providing developers with a secure, scalable, and economical option. The core innovation of Walrus lies in its efficient handling of large files (referred to as "blobs"), making it suitable for storing media files, AI datasets, blockchain historical records, and various other scenarios.

The technical highlights of Walrus include:

Low-cost storage: By using advanced coding techniques (such as erasure coding), Walrus stores data in shards across distributed nodes, requiring only a 4-5 times replication factor to ensure data availability, which reduces costs by several dozen times compared to the full node replication of traditional blockchains (such as the 100 times replication of the Sui mainnet).

High-performance read and write: Walrus optimizes data access speed, ensuring users can quickly upload and retrieve large files.

Programmability: Walrus is deeply integrated with the Sui blockchain, allowing storage resources to be manipulated through smart contracts, opening up new application possibilities for dApp developers.

On March 27, 2025, the Walrus mainnet officially launched, marking a milestone in its transition from the testing phase to full commercial use, and laying the foundation for the circulation and application of the WAL token.

WAL Token: The Lifeblood of the Walrus Ecosystem

WAL is the native token of the Walrus protocol, with a total supply of 5 billion tokens. At the launch of the mainnet, the initial circulation is 1.25 billion tokens (accounting for 25% of the total supply). As the core asset of the ecosystem, WAL plays various key roles within the network:

Storage fees: Users pay storage fees using WAL. The fee structure is designed to maintain stability with fiat currency, avoiding the impact of cryptocurrency price fluctuations on user experience.

Staking and Security: WAL adopts a Delegated Proof of Stake (dPoS) mechanism, allowing users to support storage nodes by staking WAL, participating in network security maintenance, and earning rewards.

Governance: WAL holders can vote to adjust network parameters (such as penalty intensity or reward distribution) to ensure the decentralization and transparency of the protocol.

Incentive Mechanism: Over 60% of WAL tokens are allocated to the community, including airdrops, subsidies, and reserves, to reward early users and developers.

The Walrus token economic model also introduces a deflationary mechanism. For example, short-term staking adjustments will incur penalties and partially burn tokens, incentivizing long-term staking; low-performing nodes' stakes will also face slashing, resulting in the destruction of some WAL. These designs aim to enhance the scarcity of WAL and drive its long-term value growth.

Market Potential of Walrus (WAL)

Walrus has raised 140 million dollars through private placement before its launch, with a valuation of up to 2 billion dollars (fully diluted valuation, FDV). Based on FDV calculations, the issuance price of WAL is approximately 0.4 dollars, with an initial circulating market capitalization of 500 million dollars. Although this valuation is lower than Filecoin (approximately 6 billion dollars FDV), it far exceeds many emerging storage projects, reflecting the market's optimism about its prospects. The potential of WAL comes not only from the technological innovation of Walrus but also from the strong support of Mysten Labs and the Sui ecosystem.

Sui, as a high-performance Layer-1 blockchain, has made a name for itself in the DeFi and NFT sectors, and the addition of Walrus has further improved its infrastructure. Compared to competitors like Filecoin (focused on long-term storage) or Arweave (permanent storage), Walrus's low cost and high programmability make it more suitable for dynamic application scenarios, such as AI data management and real-time media storage.

In addition, Walrus's community-driven distribution strategy adds highlights to its market performance. Before the mainnet launch, 4% of WAL (approximately 200 million tokens) was airdropped to testnet participants in the form of NFTs, and another 6% was reserved for future community incentives. This model not only incentivizes early adopters but also lays the foundation for the circulation of WAL in the secondary market.

Future Outlook of WAL Token

The mainnet launch of Walrus marks its entry into a rapidly developing phase. With the growing demand for decentralized storage in Web3, Walrus is expected to become a key player in the Sui ecosystem and the entire blockchain industry. The WAL token, as the fuel of this ecosystem, will have its value closely related to the network's usage rate and community activity. If Walrus can continue to attract developers and expand application scenarios, the price of WAL may surpass its initial valuation and challenge predecessors like Filecoin.

However, WAL also faces certain risks, such as intensified market competition and difficulties in technology implementation. Investors should pay attention to the node operation status of Walrus, user growth data, and industry dynamics when participating, in order to make rational judgments.

The combination of Walrus and the WAL token injects new vitality into the decentralized storage sector. With its low cost, high performance, and programmability, Walrus is redefining the boundaries of blockchain data management, with WAL as its economic core.

Author: Rooick Z., Gate.io researcher *This article only represents the author's views and does not constitute any trading advice. Investment carries risks, and decisions should be made cautiously. *The content of this article is original and copyrighted by Gate.io. If you need to reprint it, please indicate the author and source, otherwise legal responsibility will be pursued.