Walrus rethinks the way user funds interact with the protocol by implementing a self-custodied, object-based staking model. Walrus wraps staked money into staking objects that stay in the user's wallet rather than transferring tokens into a network-owned or controlled contract. This modest but effective design choice is in line with the fundamental ideas of decentralized ownership and significantly reduces systemic risk.
Tokens are converted into a staking object that encodes all pertinent rules, including amount, epoch limits, rewards eligibility, and slashing circumstances, when a wallet stakes WAL. Importantly, the wallet still owns this item. In contrast to pooled or escrow-based staking systems, Walrus never assumes custody of the principal, thus reducing the vulnerability surface. User funds are not concentrated in a single, appealing attack target, even in the event that portions of the protocol were compromised.
This method allows for deep composability in addition to security. Delegation layers, automated rebalancing, analytics tools, governance extensions, and even secondary markets for staking-related utilities can all be built around staking positions because they are on-chain objects. Instead than being a strict lock-up mechanism, staking becomes a flexible building block.
From the standpoint of the protocol, enforcement is still robust. Without ever having private keys, Walrus may use object rules and epoch transitions to administer rewards, punishments, and exits deterministically. Slashing maintains accountability and sovereignty by affecting the value of the staking object rather than user possession.
Walrus creates a staking system that is safer, more extensible, and future-proof by fusing self-custody, object-oriented design, and stringent economic regulations. This fosters innovation throughout the decentralized storage ecosystem and strengthens confidence. @Walrus 🦭/acc $WAL
