WAL tokenomics, distribution & release schedule

Walrus is a decentralized, delegated proof-of-stake storage protocol, built by Mysten Labs.

Its WAL token plays a central role in incentivizing (and disincentivizing) desired storage node behavior, as a means for storage payments and for nodes to make governance decisions.

In this article, we will look at WAL’s utility, distribution and release schedule.

WAL token utility

Payment

Users prepay for storage with WAL, locking in fixed rates for up to two years. This ensures stable pricing throughout the contract, protecting users from token price fluctuations.

Payments are distributed to storage nodes at the end of each epoch, guaranteeing reliable compensation for storing data.

Storage resources can also be extended, traded, or reassigned to new data, creating a secondary market for storage.

Security

Walrus uses delegated staking to secure the network, allowing users to stake WAL tokens with storage nodes.

Nodes with higher stake allocations are assigned more data, directly influencing network reliability. They earn rewards for correctly storing data, while failures result in slashing.

To reinforce long-term network performance, Walrus introduces two burning mechanisms.

Short-term stake shifts will incur a penalty fee, partially burnt and partially rewarded to long-term stakers.

Staking with underperforming nodes leads to slashing, with a portion of those penalties also burned.

Governance

Walrus governance is determined by nodes, who vote on system parameters to regulate network behavior.

Nodes collectively set penalties, with voting power proportional to their WAL stake. This ensures fairness, as they bear the costs of underperforming peers.

Proposals can be submitted before each epoch, and decisions are made by majority vote. If no proposal passes, the existing parameters remain unchanged.

WAL token distribution

• 10% is allocated to Walrus user drops, with 4% already distributed through the initial airdrop and 6% reserved for future distributions.

• 43% is allocated to the community reserve, supporting long-term ecosystem growth through grants, developer support, incentive programs, and other initiatives.

• 7% is reserved for investors.

• 30% is allocated to core contributors, including 20% for early contributors and 10% for Mysten Labs.

• 10% is set aside for subsidies to support storage nodes as the fee base grows.

WAL token release schedule

10% Walrus User Drops

• These tokens are fully unlocked and not subject to any vesting schedule. The 4% distributed in the pre-mainnet airdrop will be immediately tradable once Walrus mainnet goes live on March 27th, 2025.

43% Community Reserve

• The community reserve consists of 2.15 billion WAL tokens. 690 million WAL will be available at launch, with the remaining 1.46 billion unlocking linearly until March 2033.

7% Investors

• 350 million WAL tokens are allocated to investors and will unlock 12 months after mainnet launch, becoming available in March 2026.

30% Core Contributors

• 20% Early Contributors – Unlocks over 4 years with a 1-year cliff.
• 10% Mysten Labs – 50 million WAL available at launch, with the remaining 450 million unlocking linearly until March 2030.

10% Subsidies

• 500 million WAL will unlock linearly over 50 months (~4 years, 2 months).

WAL airdrop 

Walrus announced the WAL airdrop on February 18th. Here’s a quick overview:

• Tokens will be available once Walrus moves to mainnet.

• The tokens are stored in a soulbound NFT, meaning they cannot be traded or transferred.

• The airdrop was awarded to users who actively contributed to the Sui and Walrus ecosystem.

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This article is intended for educational and informational purposes only and should not be considered as financial advice.