Walrus Protocol (@walrusprotocol) is a decentralized storage network on Sui blockchain, optimized for AI datasets, NFTs, gaming assets, and large files in Web3. $WAL powers staking, payments to nodes, governance, and deflationary burns from penalties, with mainnet live since March 2025 and $140M backing from a16z.
Core Technology
Walrus uses "Red Stuff" erasure coding to shard data into slivers across nodes, achieving 4.5x replication for resilience recoverable even if 2/3 nodes fail while slashing costs 80-99% below Filecoin/Arweave.
Sui handles on-chain metadata, proofs of availability, payments, and smart contract composability, enabling programmable storage where contracts reference off-chain blobs directly.
Token Utility
WAL pays for uploads/downloads, with users staking to select storage epochs and nodes; operators stake WAL as collateral, slashed for downtime.
Burns occur via short-term stake migration fees and low-performer penalties, reducing supply; locked investor tokens (7%) curb early dumps until March 2026.
Market Snapshot
As of January 2026, $WAL trades ~$0.16 USD amid AI/gaming demand, $17M+ volume, hosting 120+ projects; multi-chain expansions target Ethereum/Solana.
Ecosystem Momentum Recent Humanity Protocol collab enhances privacy storage; roadmap eyes rollups, AI provenance proofs, and verifiable datasets for institutional adoption.
