Chapter 4 — WAL Tokenomics:
4.1 The Native Token: WAL
The WAL token is central to the Walrus ecosystem. It serves three principal roles:
💰 Payment for Storage: Users pay WAL tokens to store or extend data storage durations.
🔐 Security & Staking: Node operators must stake WAL, while delegators can earn rewards by contributing their tokens.
🗳️ Governance: WAL holders vote on protocol parameters (pricing, penalties, network upgrades).
The total token supply is capped, often cited at 5 billion WAL, with a division into smaller units called FROST (e.g., 1 WAL = 1 billion FROST).
4.2 Payments and Rewards
Walrus uses a pay-up-front, distribute over time model:
Users pay WAL upfront for storage durations.
WAL fees are gradually distributed to storage providers and stakers.
This creates predictable storage pricing and sustained node incentives.
