In the Walrus crypto protocol, manual native compounding is the standard process for maximizing staking returns. It requires users to actively and periodically claim their accrued WAL rewards from the native staking dashboard and then perform a separate transaction to restake those tokens back into their existing position.
The Compounding Process
Unlike some protocols where rewards automatically add to the principal balance, Walrus requires explicit user action for native staking rewards to start generating additional yield.
Rewards Accumulation: Rewards are calculated and accrue per epoch (which lasts approximately two weeks).
Manual Claiming: Users must connect their compatible Sui wallet (e.g., Martian, OKX Wallet) to the official Walrus staking dashboard and manually initiate a claim transaction for their earned $WAL.
Manual Restaking: The claimed tokens do not automatically compound. To benefit from compounding, the user must then take those claimed tokens and go through the initial staking process again—entering the amount, selecting a lock duration, and confirming the transaction.
This process involves two separate on-chain transactions and thus incurs two separate transaction (gas) fees, paid in $SUI.
Why Manual Compounding Matters
Letting rewards sit idle in the "Unclaimed Rewards" section means they are not actively securing the network and, crucially, are not earning any yield themselves. Regularly claiming and restaking is essential for users employing a conservative or balanced strategy focused on growing their principal over time.
Alternatives for Automatic Compounding
For users who prefer a "set-it-and-forget-it" approach, liquid staking protocols built on top of Walrus offer automatic compounding:
Liquid Staking Tokens (LSTs): Projects like Haedal and Winter Walrus operate independently and offer LSTs (e.g., haWAL or wWAL). When users stake their WAL through these platforms, their underlying rewards are automatically compounded, and the value of their LST increases relative to WAL over time. This removes the need for manual intervention but introduces additional smart contract risks associated with third-party protocols.