1. Pays for Decentralized Storage Services
WAL is used to pay fees when users store and manage large files (like videos, datasets, NFTs, etc.) on the Walrus network. This provides a real utility beyond speculation — people actually need the token to use the system.
2. Staking to Earn Rewards
Token holders can stake WAL to secure the network. In return, they earn rewards — a way to generate passive income from holding the token.
3. On-Chain Governance
Holding (and staking) WAL gives you voting rights on protocol decisions — such as upgrades, fees, and rules. This lets the community influence how the project evolves.
4. Supports Network Security
Staking WAL helps secure the storage network because nodes must lock up tokens to participate. Good uptime and correct behavior earn rewards, while bad performance can be penalized (slashing).
5. Deflationary Elements & Economic Design
Some fees paid in WAL may be burned or removed from circulation, providing potential deflationary pressure as network usage grows.
6. Incentives & Community Rewards
Walrus has distributed tokens via airdrop and other incentive programs to early users and participants, encouraging ecosystem growth and user engagement.
7. Integration with DeFi Activities
Liquid staking and DeFi tools built around WAL allow holders to earn extra rewards or use derivative tokens (e.g., liquid-staked WAL) in liquidity pools or other protocols.
📌 Summary: Why People Value WAL
Benefit Category Description
Utility Token Used for real services — decentralized storage payments
Earning Rewards Staking rewards + DeFi integrations
Community Governance Vote on key protocol upgrades
Economic Incentives Airdrops and ecosystem growth rewards
Network Security Supports decentralized storage node performance
⚠️ Considerations
✔️ Provides utility beyond speculation
✔️ Helps decentralize data storage