In the world of crypto things are changing fast. There are a lot of tokens there but not many of them are actually useful. They are just. Sold in the hope that they will be worth more later. $WAL is different. It is the token that is used by the @Walrus 🦭/acc . More and more people are starting to know about WAL especially after it started being used on Binance. This is because WAL is actually useful not something people are talking about.
The WAL system is built around three things that work together to make Walrus a storage network that does not need permission is not controlled by one person and is good, with money. Each of these things does something but they all work closely with each other. Walrus needs these three things to be a storage network. The three main things that make up WAL are important for Walrus to work properly.
1. Payments: WAL as the Currency of Decentralized Storage
WAL is basically a payment token. People use WAL to pay for storing data on the Walrus network. This sounds easy. It is really important. WAL is used for this purpose. It has big effects, on the Walrus network and how people use WAL.
Walrus is different, from cloud providers where it is hard to know how much things cost and the prices can change suddenly. Walrus has a pricing model that's easy to understand and based on what is happening in the market. The cost of storing things depends on what's going on in the network like how much space is available how many people want to use it and how well it is working. Walrus uses something called WAL to let users get to decentralized storage directly without having to go through a middleman.
To me this is what makes WAL really valuable. When people store things like pictures, videos or music on WAL it creates a need for the token. As Walrus starts to do things like create special digital items work with artificial intelligence and make safe places to store information on the blockchain the use of WAL will grow, as more people start to use it. This is because every time someone uses Walrus to store a file like a dataset or a media file they need WAL and that is what gives WAL its value.
The thing that sets WAL apart from tokens is that you have to use it to pay for something on the network. People use WAL because they are actually using the network. This is different, from tokens that people mostly just buy and sell. WAL is spent when the network is used.
2. Incentives: Aligning Nodes, Stakers, and Network Health
Decentralized systems need something to keep them going. That something is incentives. The people who made WAL thought about this a lot and they made sure it rewards people for doing the things. WAL is set up to encourage behavior and that is what makes it work.
Storage node operators get paid in WAL when they give people a place to store things that is always working and easy to access. The amount of WAL they get depends on how they do their job. This means that storage node operators need to make sure their storage is always up and running that it is correct and that it responds quickly. If storage node operators do a job they will not get as much WAL. This helps keep the network safe and makes sure that storage node operators are good at what they do. Storage node operators have to be serious about their work and make sure their storage is really reliable. This is good, for the network because it makes sure that people can always get to their stored things. Storage node operators and the network both benefit when storage is reliable.
Stakers are really important too. When they give their WAL to storage nodes they are helping to keep the network safe. They get a share of the rewards. This is, like a test to see which nodes are the best: the good nodes get support from stakers and the not so good nodes do not get as much help because people do not want to give them their WAL. This means that people are more likely to give their WAL to the storage nodes that are doing a job and the nodes that are not doing well will have a harder time getting support.
What really catches my eye is the balance. The WAL system rewards people for taking part. It also makes sure they are responsible for what they do. As the rules for punishing behavior get better people who do not do a good job will be penalized. I think this is really important. If you get rewards but do not have to face any consequences it is unlikely that the system will work well in the run. The WAL system is about finding this balance between rewards and penalties, for the WAL.
3. Governance: WAL as a Voice, Not Just a Token
The third pillar of WAL is governance. Token holders are not passive observers they are decision-makers.
WAL lets people who own it vote on changes to the system like how the economy works and the rules of the network. This means they get to decide things, like rewards and penalties and what the network will look like in the run. The people who get to vote have a lot of power and that power is based on how WAL they actually own so they really care about what happens to the WAL because they have a lot to lose if things go wrong.
This structure encourages long-term thinking. Short-term speculation does not benefit governance-heavy tokens. Commitment does.
