Walrus, as a decentralized storage protocol within the Sui ecosystem, is rapidly becoming a key player in the Web3 storage track. Its native token WAL attracts capital attention primarily because it has found a balance between storage costs and security.

On the technical level, Walrus adopts a self-developed Red Stuff encoding scheme, which requires only 4 to 5 times data replication to ensure storage security—compared to established players like Arweave and Filecoin, this significantly reduces costs by a hundredfold. In other words, it avoids the high replication costs of the former and the potential data loss issues of the latter's low-cost storage.

After the mainnet launch in 2025, Walrus's practical applications have expanded rapidly. It has already processed over 800TB of encoded data, covering scenarios such as AI datasets, NFT metadata, digital media archives, and more, fully meeting the needs of Web3 data-intensive applications.

From a token perspective, WAL has a total supply of 5 billion tokens, with an initial circulation of 1.25 billion tokens. Its distribution structure emphasizes community participation—over 60% of the tokens are allocated to the community, including 10% airdrops and 43% ecosystem reserves. WAL itself has multiple uses, including paying for storage fees, node staking consensus, and protocol governance voting. As storage demand increases, stakers' rewards will rise accordingly, creating a positive ecological cycle.

In terms of funding, the project is also well-supported. Walrus has completed a $140 million financing round led by Standard Crypto, with top institutions like a16z participating. The funds are mainly used for technological upgrades and ecosystem development, providing strong backing for the project's growth.