Walrus introduces a self-custodied, object-based staking model that redefines how users stake tokens. Rather than transferring funds into a protocol-controlled contract, staked WAL is wrapped into staking objects that stay fully owned within the user’s wallet. This design choice significantly reduces systemic risk and stays true to the principles of decentralized ownership.
When WAL is staked, it becomes an on-chain staking object that encodes all relevant parameters—stake amount, epoch timing, reward eligibility, and slashing rules. Importantly, ownership never leaves the user’s wallet. Walrus does not custody principal funds, eliminating the large attack surfaces common in pooled or escrow-based staking systems. Even in adverse scenarios, user funds are not concentrated in a single vulnerable contract.
This model also unlocks powerful composability. Because staking positions exist as on-chain objects, developers can build around them—adding delegation layers, automation strategies, analytics, governance tools, or even secondary markets for staking-related use cases. Staking evolves from a simple lock-up into a modular, programmable primitive.
At the same time, protocol enforcement remains robust. Walrus applies rewards, penalties, and exits through deterministic object rules and epoch transitions, without needing control over private keys. Slashing adjusts the value of the staking object itself, preserving both accountability and user sovereignty.
By combining self-custody, object-oriented staking, and clear economic enforcement, Walrus delivers a staking system that is more secure, composable, and future-ready—strengthening trust while enabling innovation across the decentralized storage ecosystem.
