Blockchain networks can record money transfers and smart contracts. However, cost and capacity problems begin to emerge when large files such as videos, images, AI datasets, or extensive transaction histories enter the picture. Walrus stands out as a decentralized data platform designed to store, verify, and manage this type of large-scale data through smart contracts without relying on a centralized cloud provider.Definition and Origins of WalrusWalrus is a decentralized storage protocol that stores large and unstructured data across a distributed network. Images, videos, audio files, documents, website content, AI models, and blockchain histories can all be stored on Walrus.Files stored within the protocol are called “blobs.” A blob refers to a single file or a large piece of data used by an application. While the file itself remains on Walrus storage nodes, information such as ownership, storage duration, and availability is recorded on Sui.Walrus was initially developed by Mysten Labs, the company behind the Sui blockchain. The project later evolved into an open-source protocol supported by the independent Walrus Foundation.WAL serves as the native token of the Walrus network. Users pay in WAL to purchase storage space, while token holders can stake WAL to support storage nodes across the network. The token also plays a role in protocol governance.Walrus does more than simply copy files across different servers. Data is encoded through mathematical methods, divided into smaller pieces, and distributed among independent nodes. This structure allows files to be reconstructed even when some nodes go offline.According to Walrus’ official documentation, when a blob is stored, the system first encodes the file and creates a unique blob ID based on its content. The data fragments are then sent to storage nodes. Signatures collected from at least two-thirds of the nodes are combined into an availability certificate.Which Network Does Walrus Run On?Walrus is a separate decentralized storage network that operates in connection with Sui. Walrus nodes store the files, while payments, ownership records, staking operations, and storage certificates are managed through smart contracts on Sui Mainnet.For this reason, WAL follows the Sui network’s token standard. A user storing data on Walrus must pay the storage fee in WAL and the gas fees for Sui transactions in SUI. Registering a blob, allocating storage space, and adding an availability certificate on-chain all generate Sui transactions.Walrus data nodes and Sui validators do not need to be operated by the same organizations. File contents are not sent to Sui validators either. Only relevant metadata, including the blob ID, size, storage duration, and certificate, is recorded on Sui.This architecture forms the basis of Walrus’ “programmable storage” approach. Move-based smart contracts on Sui can manage ownership or usage conditions for files stored on Walrus.For example, a game can store user-generated content on Walrus while representing ownership on Sui. A data marketplace can also make access to a specific file conditional on payment, membership, or another on-chain requirement.Walrus Mainnet and Sui Mainnet operate together. According to official network parameters, Walrus Mainnet uses 1,000 data shards, and each epoch lasts approximately two weeks. Storage space can be purchased in advance for up to 53 epochs, equal to roughly two years.Why Was Walrus Created?Small transaction records can be stored directly on a blockchain, but writing large files on-chain can become extremely expensive. High-resolution videos, game files, and AI datasets can exceed the storage capacity of conventional blockchains.Centralized cloud services can store large files quickly. However, the data remains dependent on the infrastructure of a single company. Service outages, account closures, or changes in provider policies can affect an application’s access to its data.Walrus aims to deliver an experience close to the speed of centralized cloud services while distributing data among independent nodes. The protocol also uses a content-based identification system that allows users to verify whether a downloaded file has been altered.A blob ID is generated directly from the file’s content. Even a single change to the content creates a different blob ID. This makes it possible to verify file integrity independently and prevents previous versions from being overwritten without detection.At the technical core of Walrus is an encoding system called RedStuff. RedStuff divides data into pieces known as “slivers” and distributes them among nodes. The system operates with approximately 4.5 times storage redundancy while aiming to repair missing pieces with lower bandwidth requirements.This approach reduces the need to store a complete copy of the file on every node. According to official documentation, data remains available as long as honest nodes control at least two-thirds of the shards. Once a file has been stored, the content can still be reconstructed if only one-third of the nodes remain accessible.Walrus does not, however, offer built-in privacy. Blobs uploaded directly to the system are public by default and can be downloaded by anyone who knows the blob ID. Sensitive data must first pass through a separate encryption or access-control layer.History of Walrus: Major MilestonesMysten Labs introduced Walrus as a developer preview on June 18, 2024. The initial version was designed mainly for Sui developers to test the protocol, store large files, and provide technical feedback.The Walrus whitepaper was published on September 16, 2024. The document explained key technical topics, including the RedStuff encoding system, data availability, node changes, and distributed storage security. Mysten Labs also said that more than 12 TiB of data had already been stored during the developer preview.The Public Testnet launched on October 17, 2024. During the testnet phase, independent storage nodes, publisher services, data retrieval infrastructure, and the staking system were tested under conditions closer to those of a live network.This phase was not limited to measuring technical performance. Economic processes such as node participation, WAL delegation, epoch transitions, and the transfer of data fragments to new committees were also tested.The Walrus Foundation began operating as a separate organization supporting protocol development and ecosystem growth before the mainnet launch. In February 2025, Rebecca Simmonds, a member of Vega Protocol’s founding team, was appointed Managing Executive to oversee the foundation’s daily operations.Mainnet Launch and Exchange ListingsThe Walrus Foundation announced on March 19, 2025, that it had completed a $140 million private token sale. Standard Crypto led the funding round, with participation from a16z crypto, Electric Capital, Franklin Templeton Digital Assets, Creditcoin, and other investment firms.The first epoch of Walrus Mainnet began on March 25, 2025. The broader mainnet launch was announced on March 27. At launch, more than 100 independent storage nodes were operating the network.The mainnet launch also introduced the live WAL token. Users gained the ability to publish blobs, retrieve data, create Walrus Sites, and delegate stake to storage nodes.WAL began trading on several cryptocurrency exchanges alongside the mainnet launch. Binance introduced a WALUSDT futures contract on March 27, 2025. Spot trading later began on October 10, 2025, with WAL/USDT, WAL/USDC, WAL/BNB, WAL/FDUSD, and WAL/TRY pairs.The Walrus team also organized an NFT-based airdrop for early community members. Ten percent of the total WAL supply was allocated directly to community distributions, with 4 percent assigned to the initial NFT distribution.Exchange listings gave WAL broader market access. However, a higher number of listings does not necessarily mean that technical usage of the project is growing at the same rate. Sustainable token demand depends on the development of applications that use Walrus for actual storage.Current StatusFollowing its mainnet launch, Walrus expanded beyond basic blob storage. Walrus Sites enables decentralized website hosting, while Quilt reduces costs by combining many small files into a single storage package.Uploading small files to Walrus separately can create disproportionate costs because of fixed metadata overhead. Quilt stores hundreds of small blobs in one structure while still allowing each file to be retrieved separately.Seal provides encryption and programmable access control for data stored on Walrus. This layer helps add privacy rules on top of Walrus’ public-by-default data structure.The project placed greater emphasis on artificial intelligence in 2026. Walrus Memory, launched in beta in March 2026 and expanded in June, provides a memory layer designed to carry AI agents’ conversations, work histories, and context across different applications.The Lighthouse integration announced in June 2026 aims to allow developers using IPFS to access Walrus storage without completely rewriting their existing applications. In April 2026, Tatum announced that it had moved 11 TB of blockchain history data to Walrus for developers and AI agents.As of July 2026, Walrus’ official website reported 356 TB of active data on the network and more than 200 ecosystem partners.As of July 2026, the WAL coin price was around $0.0293219.How Does the WAL Token Work?The first major use case for WAL is storage payments. Users purchase storage resources from the Walrus system for a specific amount of data and storage period. The payment is divided among the relevant epochs and transferred to the storage fund.At the end of each epoch, WAL in the fund is distributed to storage nodes and the stakers who delegated tokens to them based on performance. Nodes conduct lightweight audits of one another, and operators that fulfill their storage duties correctly receive rewards.Starting in May 2026, Walrus moved to a pricing model that fixes storage fees in US dollar terms. Official documentation lists a base price of $0.023 per gigabyte per month. Payments are still made in WAL, but the required amount of WAL adjusts according to the token’s market price.This model aims to prevent a rise in the WAL price from automatically making storage more expensive. Users must still pay separate SUI gas fees for registration and certification transactions on Sui.The second major use case is staking. Token holders can delegate WAL to selected storage nodes and participate in network security. The number of data shards assigned to a node is linked to the total amount of stake the node receives.WAL tokens cannot be withdrawn immediately after staking. Under the native staking system, unstaking may take one or two epochs, equal to roughly 14 to 28 days. The ecosystem also includes liquid staking solutions such as haWAL and wWAL, although these are developed by independent protocols and carry additional smart contract risks.WAL is also used in the governance mechanism. Voting power is linked to the amount staked, and storage nodes can participate in decisions involving system parameters, protocol upgrades, and penalties.Supply and TokenomicsThe maximum WAL supply is fixed at 5 billion tokens. At the mainnet launch, the initial circulating supply stood at 1.25 billion WAL, equal to 25 percent of the total supply.According to market data, approximately 2.46 billion WAL were circulating as of July 2026. This represented around 49 percent of the maximum supply.Ten percent of the total supply was allocated directly to community distributions. The first 4 percent was used for an NFT airdrop targeting community members active before the mainnet launch, while the remaining allocation was reserved for later incentive and distribution programs.When Binance listed WAL on the spot market in October 2025, the circulating supply stood at 1.48 billion WAL. The exchange allocated 32.5 million WAL to its HODLer Airdrop program and approximately 99.49 million WAL to additional marketing campaigns.The gradual increase in circulating supply shows that previously locked tokens are entering the market. New token releases can create selling pressure, although their actual effect depends on token-holder behavior, the staking ratio, market liquidity, and demand for storage.The WAL economic model attempts to create a direct link with storage demand. Users pay WAL for storage, nodes earn WAL for providing services, and stakers supply capital to the network’s security structure.However, dollar-denominated storage pricing makes the relationship between rising storage demand and token demand more complex. When the WAL price increases, less WAL is required to purchase the same amount of storage. For that reason, higher network usage does not necessarily translate into a proportional increase in the token price.Network, Storage, and Security StructureWalrus uses a security model similar to Delegated Proof of Stake. Storage nodes provide capacity to the network, while WAL holders delegate their tokens to these operators. Nodes receiving more stake may become responsible for a larger share of the network’s data shards.When a file is uploaded, the Walrus client encodes the data using RedStuff. The resulting slivers are sent to different nodes, which issue signed receipts for the fragments they receive. Once receipts from at least two-thirds of the nodes have been collected, the blob is certified as available.During file retrieval, the client or aggregator collects the necessary fragments from nodes. The original blob can be reconstructed once more than one-third of the valid slivers have been obtained. The downloaded content is then verified using the blob ID and cryptographic metadata.Walrus uses approximately 4.5 times encoding redundancy. For example, a 1 GB file may generate around 4.56 GB of billable storage after encoding and metadata are taken into account.This additional capacity may initially appear inefficient. The goal, however, is to maintain high availability without storing numerous full copies and to avoid retransmitting the entire file whenever the node committee changes.Network security does not rely solely on encoding. Node performance is monitored, and operators that violate protocol rules may face staking penalties. Mainnet epochs lasting two weeks also allow committee changes and staking operations to proceed in a more controlled manner.Why Is Walrus Important?Decentralized applications often keep their smart contracts on a blockchain while storing large files on centralized servers. As a result, critical data can remain dependent on a single service provider even when the visible part of the application appears decentralized.Walrus aims to store large files across distributed nodes while proving data integrity on-chain. Application developers can independently verify that a file is available and that it has remained identical to the version originally uploaded.Content-based blob IDs also make it easier to track data provenance. Developers can verify which dataset was used to train an AI model, which version of a financial report was used, or which file is linked to an in-game asset.Another distinctive feature of Walrus is its representation of storage resources as Sui objects. These resources can be divided, combined, and transferred to other addresses. Storage capacity therefore becomes a programmable asset that smart contracts can manage.Walrus is not a permanent archival system that automatically guarantees unlimited storage. Users pay for a specific number of epochs and must extend the storage period before it expires. This creates a different model from permanent-storage projects such as Arweave.Walrus’ Position in the Decentralized Storage EcosystemThe decentralized storage market already includes older solutions such as Filecoin, Arweave, and IPFS. Walrus entered the sector later, with its main differentiation centered on direct programmability through Sui and high-speed data access.Walrus does not focus solely on Web3 files. Its potential use cases include AI datasets, agent memory, advertising data, financial records, gaming content, NFT media, decentralized websites, and blockchain histories.According to official data, small files can be downloaded in approximately 800 milliseconds. This performance claim may vary depending on network conditions, file location, and the aggregator service being used.Walrus Sites allows website files to be stored on Walrus while domain and ownership information is managed through Sui. As a result, the closure of an account by a centralized hosting company does not directly remove access to the website’s core files.Walrus’ verifiable data approach is also becoming relevant in artificial intelligence. An agent can record the model, dataset, or previous work history it used through blob IDs. Since these records cannot later be altered without changing their identifiers, tracing the data behind generated results becomes easier.Integration with IPFS and other developer tools could also help Walrus expand beyond applications built exclusively on Sui. Even so, payments, staking, and the core coordination layer continue to operate on Sui.Risks and WAL VolatilityWAL is a cryptocurrency token and is therefore exposed to significant price volatility. Market conditions, token unlocks, exchange liquidity, and developments within the Sui ecosystem can affect the WAL price over short periods.With roughly half of the maximum supply in circulation, additional WAL tokens may enter the market in the future. Token unlocks do not always result in selling, but investors should still monitor changes in circulating supply.Walrus also faces adoption risk. A functioning technical infrastructure is not enough on its own. For the protocol to create long-term value, developers must build applications on Walrus and genuine demand for storage must continue to grow.Its connection with Sui provides Walrus with a fast and programmable coordination layer. At the same time, this connection makes Walrus partially dependent on technical issues, gas costs, and ecosystem risks associated with Sui.The public-by-default nature of stored data creates another risk. Users should not upload private keys, personal documents, trade secrets, or other sensitive information to Walrus without encryption. Keeping a blob ID private is not considered a sufficient security measure.Encoding and reconstructing large files can also require substantial memory. Current documentation lists an approximate file-size limit of 13.6 GiB for a standard blob. Encoding a 5 GiB file may require between 10 and 15 GiB of available RAM.The staking system may also face operator concentration risk. If a large share of WAL is delegated to a small number of nodes, data responsibility and governance influence may become concentrated among certain operators. Token holders should examine node performance and stake distribution alongside commission rates.Walrus Community and EcosystemIt would not be accurate to identify a single person as the founder of Walrus. The protocol was developed by a team of researchers and engineers at Mysten Labs, the company behind the Sui network.Mysten Labs was founded by Evan Cheng, Sam Blackshear, Adeniyi Abiodun, Kostas Chalkias, and George Danezis. The company’s founders previously worked on projects including Meta’s Diem blockchain initiative and the Move programming language.The academic paper on Walrus lists George Danezis, Giacomo Giuliari, Eleftherios Kokoris Kogias, Markus Legner, Jean-Pierre Smith, Alberto Sonnino, and Karl Wüst as authors. The team worked on the RedStuff encoding system, epoch transitions, and data recovery mechanisms.Although Mysten Labs initially developed the protocol, ecosystem activities are managed by the Walrus Foundation. The nonprofit organization supports developer grants, partnerships, research proposals, and community programs.Rebecca Simmonds has served as Managing Executive of the Walrus Foundation since February 2025. Technical development of the protocol continues through its open-source code repository and contributions from different participants.Community and GovernanceThe Walrus community includes WAL holders, storage-node operators, application developers, and data-service providers. Before the mainnet launch, testnet participants contributed by operating nodes, uploading files, and developing applications.WAL holders can participate in network security by staking their tokens with storage nodes. The amount of stake helps determine a node’s data responsibilities and influence within governance.Governance is more technical than a system in which every WAL holder votes directly on a separate proposal platform. Node operators supported by staked WAL can vote on protocol upgrades, system parameters, and penalty decisions when necessary.The Walrus Foundation runs grant and request-for-proposal programs for developers. These initiatives support the development of storage tools, developer kits, data marketplaces, AI applications, and user-experience projects.The ecosystem includes tools for TypeScript, Python, Swift, Dart, and other programming environments. This range of tools aims to help developers upload files without working directly with low-level blockchain transactions.Partnerships and Use CasesWalrus partnerships demonstrate how the storage protocol can be used across different sectors. Plume announced that it would use Walrus as its default blob-storage solution for documents and financial metadata related to real-world assets.The integration with Linera focuses on allowing microchain applications to store large files on Walrus. Walrus also plans to use some parts of Linera’s verification infrastructure for data-processing operations.Pudgy Penguins began working with Tusky, a platform within the Walrus ecosystem, for decentralized storage of media files. This model aims to reduce dependence on a single centralized provider for GIFs, images, videos, and brand content.Chainbase aims to verify data integrity by storing raw data collected from different blockchains on Walrus. Itheum uses Walrus storage to support the tokenization of large media files and AI datasets.In gaming, Walrus can turn user-generated content into verifiable digital assets. Super-B plans to store player designs on Walrus while managing ownership and reward mechanisms through Sui smart contracts.Frequently Asked Questions (FAQ)Below are some frequently asked questions about Walrus and WAL.What is Walrus, and when was it launched?: Walrus is a decentralized storage protocol that stores large files across distributed nodes and makes the data programmable through Sui smart contracts. Mysten Labs announced the project in June 2024. The Public Testnet launched in October 2024, followed by Mainnet in March 2025.What is the WAL token used for?: WAL is used to purchase storage space, stake with storage nodes, reward operators, and participate in protocol governance. Storage fees are paid in WAL, while gas fees for transactions on Sui are paid in SUI.Which network does Walrus run on?: Walrus operates its own independent storage nodes but uses Sui Mainnet as its coordination layer. Blob registrations, storage resources, payments, staking, and availability certificates are managed through smart contracts on Sui.Who founded Walrus?: Walrus does not have a single founder. The project was initially developed within Mysten Labs, which was founded by Evan Cheng, Sam Blackshear, Adeniyi Abiodun, Kostas Chalkias, and George Danezis. Ecosystem activities are now supported by the independent Walrus Foundation.What is the WAL token supply?: WAL has a maximum supply of 5 billion tokens. Its initial circulating supply at mainnet launch was 1.25 billion WAL. According to CoinMarketCap and CoinGecko data, approximately 2.46 billion to 2.5 billion WAL were circulating as of July 2026.Is Walrus suitable for investment?: There is no single answer to this question. WAL has practical use cases in storage, staking, and governance, but it also carries risks related to high volatility, token unlocks, competition, technical challenges, and uncertain adoption. Before making a decision, investors should assess WAL distribution, the token-unlock schedule, network usage, the staking ratio, and their personal risk tolerance.For more information about decentralized data-storage projects like Walrus, the Sui ecosystem, and Web3 infrastructure, follow the JR Kripto Guide series.