A decentralized data storage and availability network designed to let users “publish, deliver, and program any data, onchain”. Developed by Mysten Labs (the team behind the Sui blockchain), Walrus offers scalable on-chain storage where large data (“blobs”) can be stored with minimal cost and maximum reliability. Mysten Labs built Walrus specifically to address shortcomings in other decentralized storage protocols around scalability, security, and flexibility, by delivering faster and cheaper on-chain storage solutions.

Project Function

Core Storage Network: At its heart, Walrus is a permissionless decentralized storage network where users can upload and retrieve arbitrary data blobs (files, media, datasets, etc.) on-chain. Data is stored across a distributed set of storage nodes rather than on a single server. The network is live with over 100 independent storage nodes as of launch.

Walrus Sites (Decentralized Web Hosting): One notable product built on Walrus is Walrus Sites, a service for decentralized web hosting. This allows developers to publish entire websites or web applications on Walrus’s storage network.

Developer Tools and APIs: Walrus provides a suite of tools for developers to integrate the storage network into applications. This includes a command-line client, JSON and HTTP APIs, and SDKs.

Token Utility 

Payment for Storage: WAL is the exclusive payment currency for using Walrus storage. When users upload data, they pay a fee in WAL tokens to compensate the network for storing and serving that data.

Network Security via Staking: WAL is a proof-of-stake token that secures the Walrus network. Holders can stake WAL (either by running a storage node or by delegating to a node) to participate in Walrus’s security and operation. The Walrus protocol uses a delegated staking mechanism where storage nodes compete to attract stake from token holder.

Governance and Network Control: WAL functions as a governance token for protocol parameters and upgrades. Walrus is intended to be community-governed, and WAL token holders (particularly node operators with stake) will have voting power to shape certain network settings.

Deflationary Mechanics: Walrus has built-in token burning features via two burn mechanisms:

Churn fees - If stakers move their stake from one node to another (short-term stake shifting), a fee is imposed, and a portion of the fee is burned.

Slashing penalties - When a storage node is slashed for poor performance, part of the slashed is burned.

About The Founders

WAL: Walrus was developed by the team at Mysten Labs, the blockchain infrastructure company which developed the Sui blockchain. Mysten Labs is a team of leading distributed systems, programming languages, and cryptography experts whose founders were senior executives and lead architects of pioneering blockchain projects. The mission of Mysten Labs is to create foundational infrastructure for web3. 

Risks of WAL

Like an investment in other crypto assets, there are some general risks to investing in WAL. These include:  (i) volatility risk and liquidity risk, (ii) short history risk, (iii) demand risk, (iv) forking risk, (v) code defects, (vi) regulatory risk, (vii) electronic trading risk, and (viii) cyber security risk. For additional information of these and other general risks associated with crypto assets and Uphold’s platform, please refer to the Risks Specific to Holding Digital Assets statement.

In addition to these general risks, an investment in WAL is subject to the following specific risks:

WAL operates using smart contracts, which have an association with vulnerabilities and security breaches. Despite undergoing successful audits by well-regarded third-party entities, it is essential to acknowledge the existence of inherent risks. 

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with WAL. Investors should conduct their own research and perform their own assessment before trading any crypto asset to determine the appropriate level of risk for their personal circumstances.

The WAL community and Walrus founding team are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of WAL have no recourse to the WAL community, Walrus founding team, or Uphold if WAL declines in value for any reason.

Changes to applicable law may adversely affect the use, transfer, exchange, or value of any of your crypto assets, and such changes may be sudden and without notice.

Uphold’s Evaluation Process

Prior to listing WAL on the Uphold Platform, Uphold performed due diligence on WAL and determined that WAL is unlikely to be a security or derivative under relevant securities legislation. Uphold’s analysis including reviewing publicly available information on the following: 

The creation, governance, usage, and design of WAL, including ensuring the source code is open-source, audited and peer reviewed, security, and roadmap for growth in the developer community. 

The supply, demand, maturity, utility, and liquidity of WAL.

Any marketing materials put forward by the WAL social team including on, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.

Material technical risks associated with WAL, including any code defects, security breaches and other threats concerning WAL and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them.

Legal and regulatory risks associated with WAL, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of WAL.