Walrus has secured $140 million in funding with a valuation of $2 billion. The key to this success lies in the clever design of its token economy. This is also the core reason why I remain optimistic about this project.

Let's first look at the logic behind the distribution strategy. In the WAL token, investors only receive 7%, while community airdrops account for 10%, which means tokens worth $200 million are directly distributed to users. This approach, where the airdrop scale exceeds the funding allocation, is rarely seen in the storage sector, demonstrating the project's dedication to community building.

Next, consider the supply-side design. Every transaction on the Walrus network burns a portion of WAL. The more active the ecosystem and the higher the trading volume, the less the total token supply becomes—forming a self-reinforcing intrinsic value logic. Compared to models with unlimited issuance, this deflationary mechanism is indeed more promising.

There's also the weight of institutional backing. Top funds like a16z, Standard Crypto, and Electric Capital have all invested, most of which are deep players in the Sui ecosystem. This vested interest means these institutions are unlikely to withdraw easily; instead, they will continue to invest resources to promote the expansion of the Walrus ecosystem.

For long-term value investors, WAL's design balances both short-term and long-term interests: short-term airdrops and exchange listings provide liquidity, while the deflationary logic and institutional support offer long-term stability. Such a combination is rare in the storage sector.