In the Sui ecosystem, a new player focused on storage and privacy called Walrus has recently emerged. Its core logic is not complicated—using erasure coding technology to shard and store data, which significantly reduces storage costs while maintaining privacy and decentralization.

Walrus's native token is WAL, with a total supply of 5 billion tokens. The token design is quite interesting; it is not only used to pay for storage fees and node rewards but also supports the entire delegated staking system. Nodes and delegators can earn rewards through staking, but nodes with poor performance face slashing penalties. This mechanism ensures network security.

In terms of token distribution, 43% goes to the community treasury (linear release before 2033), 10% for community airdrops, along with 10% for node subsidies, 7% for investors, 3% for the team, and other locked allocations. An intriguing aspect of this structure is the built-in deflationary mechanism—staking fines and node penalties are burned, which can increase the token's value over the long term.

Technically, WAL supports a privacy DeFi protocol that enables private transactions, dApp interactions, along with decentralized governance and staking mechanisms. The community can vote on network parameters and upgrade directions, giving participants control over the protocol's development. The entire system is built on the Sui chain, utilizing blob storage and erasure coding to create a scalable, censorship-resistant, low-cost decentralized storage infrastructure.