Whether a project can go far often depends on its token model. Today I want to talk about the $WAL design of the Walrus protocol. To be honest, the details are quite meticulous.

Let's first look at the distribution logic. Over 35% of the total supply is directly allocated to community and ecosystem development, which is indeed among the top in similar projects. What's more interesting is the deflationary design—the protocol repeatedly uses a portion of its revenue to buy back and burn $WAL. This not only creates scarcity but also allows token holders to share in the growth cake. It's somewhat similar to a company's stock buyback strategy, but executed transparently on-chain.

The staking mechanism is very flexible. The tiered system caters to different risk preferences, with annual yields ranging from 5% to 25%, giving users the option to choose based on their own ideas. This is clearly better than a one-size-fits-all single yield rate.

The most critical aspect is governance rights. Token holders can vote on major protocol events—adjusting parameters, launching new features, selecting partners. This is not just a formal democratic process; all on-chain records are fully transparent, and anyone can verify. Currently, the community has approved several important proposals, and this operational approach indeed enhances participation.

However, no matter how elegant the token model is, it ultimately depends on practical application and ecosystem development. Walrus's future performance in these areas will be the real test.