Walrus token (WAL) is more than a standard payment coin; it powers a specialized storage layer that treats data as a programmable on-chain object rather than a static file.
Unique Peculiarities of the Walrus Protocol
What sets Walrus apart from competitors like Filecoin or Arweave is its technical and economic architecture:
"Red Stuff" 2D Erasure Coding: Walrus uses a custom encoding scheme called "Red Stuff" that splits files into "slivers" distributed across nodes. This allows the original file to be reconstructed even if two-thirds of the storage nodes go offline, all while maintaining a low replication factor (about 4.5x) compared to the massive overhead of traditional blockchain replication.
Programmable Storage: Unlike most decentralized storage where you simply "upload and hope," Walrus integrates with the Sui blockchain and its Move language. This means a smart contract can natively own, modify, or even delete a stored file (blob), enabling "self-expiring" data or pay-per-view access directly on-chain.
Stable Storage Pricing: To prevent the volatility of the WAL token from making storage too expensive, the protocol uses a mechanism to keep storage costs stable in fiat (USD) terms.
Deflationary Pressure: The token economy includes a burn mechanism for transaction fees and penalties levied on underperforming nodes or users who shift their stakes frequently.