Executive Summary

Walrus is a decentralized storage and data availability protocol designed to address the challenges of securely, cost-efficiently, and programmably storing and managing large, unstructured data files, referred to as ‘blobs’.

Mysten Labs, the same team behind developing the Sui blockchain, is developing the Walrus protocol. It aims to empower Web3 builders by providing a robust solution for handling rich media content, such as videos, images, PDFs, and other large datasets like blockchain histories and AI training data. Walrus introduces a unique approach that combines high availability, scalability, and integration with smart contract programmability. 

At its core, Walrus leverages the Sui blockchain as its coordination layer. It utilizes Sui’s Move programming language and object-oriented design to manage metadata, ensure data availability, and enable seamless interaction with stored data. Although the protocol operates as an integration with Sui, it remains chain-agnostic, so builders on other networks like Ethereum and Solana can also use it. 

So Walrus is redefining how large data is stored and utilized in a decentralized world, leveraging Sui’s capabilities while extending its reach beyond a single blockchain network, and tackling the critical need for scalable, reliable, and cost-efficient storage solutions. 

About the Project

Vision: 

Walrus aims to empower developers, creators, and blockchain ecosystems by providing a scalable and cost-effective storage protocol. The team envisions a decentralized internet where large, unstructured data can be stored securely, accessed efficiently, and utilized programmatically without reliance on centralized intermediaries. Walrus seeks to bridge the gap between Web3’s need for rich data management and the limitations of existing infrastructure, fostering a future where decentralized applications (dApps) and content platforms can thrive with seamless data availability. 

Problem:

The decentralized ecosystem faces a significant challenge in managing large quantities of data. Traditional blockchains like Bitcoin and Ethereum are optimized for small, structured data, such as transaction records, but not for storing media or extensive datasets like AI models. Existing solutions of centralized cloud providers like AWS introduce single points of failure risk and thus trust issues. At the same time, decentralized alternatives like IPFS either lack programmability and scalability or incur high costs due to full data replication. This creates bottlenecks for Web3 applications like NFT platforms, decentralized social media, or layer 2 rollups, that rely on affordable and reliable access to large datasets. 

Solutions:

Walrus addresses these problems with a decentralized storage and data availability protocol built on innovative technology and integration with the Sui blockchain. Instead of replicating entire files across all nodes, Walrus uses an advanced erasure coding technique called ‘Red Stuff’. It splits data into smaller, redundant fragments distributed across a network of storage nodes, ensuring resilience with a replication factor of roughly 4x-5x, far lower than traditional blockchain methods. The protocol leverages Sui’s Move language to enable smart contract programmability, allowing developers to store data and define how it’s accessed. The multi-chain compatibility makes Walrus a versatile, efficient solution for Web3’s data storage needs. 

Market Analysis

The Walrus protocol operates within the decentralized storage and data availability sector, a rapidly growing niche within the broader blockchain and Web3 infrastructure market. This sector addresses the growing demand for scalable, secure, and cost-efficient storage solutions for decentralized applications (dApps), NFTs, and layer 2 blockchain networks. According to CoinGecko, today's total decentralized storage market capitalization is $4.64B. This falls under the global data storage market, which was valued at $255B in 2025, and it is expected to grow to $774B by 2032, at a CAGR of 17.2%, as per the research report from Fortune Business Insights. As decentralized storage is cost-efficient and more secure than traditional cloud storage providers, there is enough potential to grow in this market. 

Competition: 

Walrus today is the second-largest decentralized protocol as per market capitalization, and it has a few strong competitors:

• Filecoin: Filecoin is a decentralized storage network built on IPFS. Its marketplace allows users to pay miners in $FIL. Unlike Walrus’s low-cost, integrated programmability model, Filecoin uses market-driven pricing and full replication. 

• Arweave: Arweave offers permanent storage on its blockchain, with a one-time $AR fee for infinite retention. Walrus, focused on temporary-to-medium-term storage and cost-efficient erasure coding, contrasts with Arweave’s permanence and higher redundancy. 

• Storj: Storj provides encrypted, decentralized cloud storage with a pay-as-you-go model. It targets privacy and enterprise use, differing from Walrus’s Web3 focus and smart contract programmability via Sui. 

Features

• Advanced Erasure Coding with “Red Stuff”: Walrus employs a unique algorithm called “Red Stuff”, which fragments data into smaller, redundant pieces distributed across its storage network. This ensures data resilience against node failures while maintaining a replication factor of approximately 4x-5x, significantly lower than traditional blockchain replication methods. 

• Programmability via Sui Integration: Built using the Sui blockchain, Walrus leverages Move language to enable smart contract functionality. This allows developers to define access rules, automate data interactions, and build dApps directly atop stored data, such as decentralized websites or NFT media platforms, making it more than a passive storage solution. 

• Chain-Agnostic Flexibility: While anchored to Sui for metadata and coordination, Walrus is designed to be chain-agnostic, meaning it can serve applications and users across blockchains like Ethereum and Solana, or even non-blockchain systems. This positions Walrus as a universal storage layer for Web3 and beyond, broadening its potential use cases. 

• Cost-Efficient and Scalable Storage: Walrus prioritizes affordability and scalability, offering a default 180-day storage period (extendable via fees) at a fraction of centralized cloud costs. It handles large data with minimal overhead, catering to data-intensive needs like AI datasets or blockchain state histories without breaking the bank. 

• Decentralized Data Availability: Beyond storage, Walrus ensures data availability through its distributed node network, making it a viable solution for layer 2 rollups or other systems requiring accessible off-chain data. So, it provides high reliability without the redundancy of full replication, which is a key advantage for Web3 infrastructure. 

Token

$WAL is the native token of the Walrus protocol. It is designed to ensure competitive pricing, the efficient allocation of resources, and minimal adversarial behavior by nodes. $WAL is the payment token for storage, and users pay to have data stored for a fixed amount of time, and the $WAL paid is upfront distributed across time to storage nodes and stakers as compensation for their services. The Walrus protocol is defaltionary and includes a token burning mechanism for penalty fees and slashing. $WAL tokens have a total supply of 5 billion, of which 1.25 billion are in circulation, and the token is trading on several centralized exchanges like Upbit, Gate.io, Bybit, Kraken, and others. 

Traction

Walrus protocol mainnet went live on March 27th, 2025, and so far it is being used by more than 120 projects and 11 websites. Some notable partnerships are Talus, Linera, data tokenization platform Itheum, 3DOS, and TradePort. The protocol has launched its RFP program, which aims to fund projects that tackle specific product use areas critical to Walrus, like dev tooling, integrations, and new use cases for programmable storage. This shall help them bring more developers and projects into their ecosystem. 

Team

The Walrus protocol is backed by a skilled team from Mysten Labs, the original developers behind the Sui blockchain, who have deep expertise in blockchain technology and decentralized systems. Founded by ex. Meta researchers, including Evan Cheng (CEO), Sam Blackshear (CTO), and George Danezis (Chief Scientist), Mystem Labs brings a wealth of experience from building scalable infrastructure like Facebook’s Libra/Diem project. Their work on the Sui blockchain, where Walrus originated, showcases their proficiency in high-performance distributed systems and the Move programming language, tailored for smart contracts. Since it spun out as a standalone protocol under the Walrus Foundation, the team has expanded to include Web3 professionals and experts in cryptography, distributed computing, and finance. 

Investors

Walrus announced a private token sale for $140M in March 2025 ahead of its mainnet launch. Standard Crypto led the sale, which saw participation from Andreessen Horowitz (a16z), Electric Capital, Franklin Templeton Investments, Comma3 Ventures, Karatage, Raptor Group, Lvna Capital, Protagonist, and RW3 Ventures. 

Conclusion

Walrus emerges as a transformative force in the decentralized storage sector. It addresses critical needs for scalable, cost-efficient, and programmable data solutions. By leveraging the Sui blockchain and its innovative ‘Red Stuff’ erasure coding, Walrus offers a unique blend of affordability, resilience, and smart contract functionality, setting it apart from competitors.

Backed by experts at Mysten Labs and a $140M token sale from top-tier investors, the protocol has rapidly gained traction since its mainnet launch last week, powering over 120 projects and securing key partnerships. With its native $WAL token driving a deflationary economy and a chain-agnostic design broadening its reach, Walrus is well-positioned to capitalize on the booming decentralized storage market. 

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