Most Web3 storage projects struggle with the same invisible wall: they excel at one piece of the puzzle but fail to connect the whole system. Some have strong technology but no real users. Others gain users but lack monetization. A few generate revenue, yet can’t reinvest it into meaningful upgrades. The result is a broken cycle where growth stalls.
Walrus breaks this pattern by building a full-chain commercial loop — a system where demand, service, revenue, and iteration continuously reinforce each other. This approach explains how Walrus rapidly secured $140M in private funding, reached a $2B valuation, and achieved stable profitability in AI + RWA use cases. The strength of Walrus isn’t a single advantage, but a tightly connected growth engine spanning technology, ecosystem, users, and monetization.
1. Start With Real Demand, Not Abstract Technology
A sustainable business loop always begins with clear demand. Advanced technology without a concrete use case rarely survives. Instead of chasing “all scenarios,” Walrus deliberately narrowed its focus to two high-value sectors: AI and Real-World Assets (RWA).
Through months of direct research with AI labs and asset institutions, two critical truths emerged:
AI teams need low storage costs, fast access, and minimal integration complexity.
RWA projects prioritize compliance, traceability, and long-term operational reliability over cheap storage.
By defining these boundaries early, Walrus avoided feature bloat and concentrated development on solving real pain points.
This demand-first approach shaped everything — from RedStuff 2D erasure coding that balances cost and recovery speed, to seamless integration with the Sui ecosystem that allows developers to deploy in days instead of weeks. As a result, the majority of active testnet usage comes directly from AI and RWA users, creating a solid foundation for monetization.
2. Ecosystem Collaboration as a Cost Multiplier
Building a full commercial loop alone is expensive. Walrus reduced this burden by deeply integrating with the Sui ecosystem, forming a symbiotic relationship instead of operating as an isolated protocol.
User acquisition benefited from Sui’s developer network, dramatically lowering onboarding costs.
Infrastructure and operations reused Sui’s consensus and gas systems, cutting development time and expenses.
Node management and ecosystem tooling were partially shared, improving efficiency at scale.
Beyond technical reuse, Walrus reinvested a significant portion of funding into ecosystem incentives — subsidizing developer integration and reducing early costs for RWA participants. This not only accelerated adoption but also made Walrus a core infrastructure layer inside the ecosystem, strengthening long-term demand.
3. Scenario-Driven Monetization, Not Price Wars
True sustainability comes from monetization that matches user value. Walrus rejected low-price competition and speculative token models, instead designing scenario-based revenue structures.
In AI use cases, Walrus combines competitive base pricing with value-added services. High-frequency training data is priced for performance and reliability, while low-access data benefits from cost efficiency. Partnerships that bundle storage with computing power further increase revenue per user, turning storage into a gateway for higher-value services.
In RWA scenarios, compliance becomes the premium. Asset verification, traceability, long-term storage, and pledge services are priced according to asset value and risk, generating strong margins. This model transforms regulatory complexity into a revenue advantage rather than a burden.
Together, AI and RWA now form the core profit engines, providing stable cash flow instead of speculative spikes.
4. Profit Feedback: Turning Revenue Into Moats
What makes the loop powerful is what happens after monetization. Walrus continuously feeds profits back into:
Technology upgrades (cross-chain compatibility, lighter node architecture)
Service refinement based on real usage data
Ecosystem expansion and deeper partner integration
Token value alignment through buyback and burn mechanisms
This creates a reinforcing cycle: better services attract stronger users, stronger users generate higher revenue, and higher revenue funds further upgrades. Over time, this feedback loop becomes a barrier that’s hard for competitors to replicate.
The Bigger Lesson: Web3 Needs Circular Value, Not Hype
Walrus demonstrates that long-term success in Web3 doesn’t come from isolated innovation or rapid scaling alone. It comes from building a recyclable value system — where every decision strengthens the loop between demand, ecosystem, monetization, and iteration.
Challenges remain, from cross-chain expansion to node cost optimization. But the underlying strategy is clear:
focus on real users, leverage ecosystems, monetize by scenario, and reinvest with discipline.
In a market crowded with short-term narratives, projects that master this closed-loop thinking are the ones positioned for durable growth.
