Walrus treats performance as an economic variable—and that’s the right instinct for decentralized storage. $WAL is described as deflationary with two burn-linked penalty paths: (1) short-term stake shifts are subject to a penalty fee that’s partially burned and partially distributed to long-term stakers, because noisy stake churn forces expensive data migration; (2) staking with low-performing storage nodes will be subject to slashing, with a portion of fees burned, pushing delegators toward reliable operators and discouraging malicious games. In plain terms: Walrus is pricing “network turbulence” and rewarding stable commitments.

If these mechanisms are implemented as intended, $WAL becomes a signal of operational quality, less churn, fewer weak nodes, and stronger incentives for durable storage service. @Walrus 🦭/acc $WAL #Walrus