In the crypto ecosystem, the most discussed topic is token economics, and the most heard term is "Bitcoin." Truly practical models, however, are quite rare.

Today, let's lift the curtain on the Walrus Protocol ecosystem and see what the $WAL token is really doing—how its three core functions are interconnected to keep the entire network running.

**Layer 1: The True Meaning of Governance Rights**

Unlike some projects' virtual voting, WAL holders hold real decision-making power over the protocol's development. Imagine not only participating in decisions but also genuinely influencing the outcomes. For example: Should we strengthen support for AI model data storage? How should the fees for different levels of storage services be adjusted? How should the rewards for node operators be allocated? These major issues affecting the ecosystem's survival are decided by community votes. The protocol is no longer solely dictated by the project team but shaped collectively by builders. This is called decentralization.

**Layer 2: Precise Distribution of Incentive Flows**

WAL acts as the reward hub of the entire network. Storage nodes provide hard drive space and bandwidth in exchange for WAL rewards—sounds good, but don't forget the other side: if services malfunction, the staked tokens of nodes can be penalized or confiscated. This "carrot and stick" approach is quite strict, using economic means to enforce honesty and stability in the network. Ordinary users can also participate—by staking WAL to earn a share of protocol fees. Each role is motivated to perform diligently, ensuring the network operates smoothly.

**Layer 3: The Closed-Loop of Value Capture**

When the ecosystem prospers and storage demand surges, the protocol's collected fees accumulate. These fees are then redistributed to stakers and nodes, providing the token with real cash flow support. This is not just empty talk; it involves actual value circulation that can be tangibly felt.