The $WAL of the Walrus protocol doesn't just seem to be a governance token; in fact, it is the core "engine" that drives the entire network operation. This design approach is quite interesting—the utility of the token is tightly bound to the key activities of the protocol.

First, let's look at transaction and storage fees. Privacy transactions and decentralized storage on Walrus require payment in $WAL, with about 70% of these fees being burned directly. This continuous deflationary design provides a real foundation for the token's value.

Next is the staking and security mechanism. Users stake $WAL to run storage nodes or validation nodes in exchange for storage rewards and protocol fee dividends. This not only provides the necessary infrastructure for the network but also locks liquidity, reducing market sell pressure. Compared to purely governance tokens, this approach gives the token actual economic significance.

Governance rights are also crucial. $WAL holders can decide on fee adjustments, new feature proposals (such as supporting more privacy algorithms or storage types), and how the community treasury is used. This grants the token long-term governance premium.

Another detail is liquidity incentives. The protocol may use part of its fee income to reward key trading pairs like $WAL/$SUI on DEXs, enhancing market depth and price stability.

The key point is: the value capture of $WAL goes far beyond those DeFi projects that only serve as governance tokens. The token's value can grow in tandem with the adoption rate of the protocol because it is directly linked to the core revenue sources. This design logic is indeed unique.