“What does staking WAL actually do?”
When most people hear “staking,” they instinctively think of locking up tokens in exchange for interest. But what staking actually supports varies from one protocol to another.
In the Sui ecosystem’s #Walrus protocol, storage nodes must have enough WAL staked to operate. This stake can come from the nodes themselves or be delegated to trusted nodes by any WAL holder.
When users upload data and pay storage fees, those fees are distributed to nodes and their delegators in proportion to their stake, creating a source of revenue tied to the network’s actual usage.
At the same time, the protocol is designed to permanently burn a portion of the fees, creating a more direct link between WAL’s supply and the network’s actual usage.
When most people hear “staking,” they instinctively think of locking up tokens in exchange for interest. But what staking actually supports varies from one protocol to another.
In the Sui ecosystem’s #Walrus protocol, storage nodes must have enough WAL staked to operate. This stake can come from the nodes themselves or be delegated to trusted nodes by any WAL holder.
When users upload data and pay storage fees, those fees are distributed to nodes and their delegators in proportion to their stake, creating a source of revenue tied to the network’s actual usage.
At the same time, the protocol is designed to permanently burn a portion of the fees, creating a more direct link between WAL’s supply and the network’s actual usage.