Stop Wasting Hard Drive Space – Make It Pay You!
Ever look at all that empty space on your hard drive and think,
“Man, there’s got to be a better way to use this—you know, a way to make it work for you?”
Exactly. Like turn it into some passive income, right?
Totally right. And you’re in luck because that’s exactly what we’re diving into today. We’re talking about a project called Walrus, built on the SUI blockchain, and it might just be the answer to your storage-to-cash dreams.
How Walrus and SUI are Changing the Game
So today we’re going to break down how Walrus works.
We’ll look at what kind of hardware you need to get involved and if you need to, like, rush out and buy a bunch of new equipment. Spoiler alert: you probably don’t.
Then we’ll look at what kind of return you can expect and how long it might take to see that return. Plus, we’ll explore all the other cool ways you can get involved with Walrus, even if you aren’t ready to dive into the deep end of running a full storage node. So think of Walrus like a giant, global, and totally decentralized data storage network.
Yeah. And it’s built right alongside the SUI blockchain, which is known for being super fast and efficient. What’s really interesting is that Walrus is designed to handle those massive files—they call them blobs—efficiently and cheaply.
Big Names Are Betting Big on Walrus
Much more so than traditional methods. And to give you an idea of how much faith people have in this project, some pretty big names in investing have jumped on board. Like serious players, right?
Right. Like Franklin Templeton and A Horowitz’s crypto arm. They poured $140 million into the Walrus Foundation, which tells you they really believe in this vision.
How to Turn Extra Storage Into Passive Crypto
All right, let’s get into the nuts and bolts. How can someone with, say, a few extra terabytes lying around actually make money providing storage on Walrus? Well, what’s really cool here is how Walrus picks who gets to be a storage provider.
Okay, how does that work? They use something called delegated proof of stake. I’ve heard of proof of stake, but delegated?
Why Delegated Proof of Stake Matters
Basically, the computers that store the data get chosen based on how many WAL tokens they have staked. Okay, so the more WAL tokens you stake, the more likely you are to get chosen as a storage provider. It’s like the network is saying, “Hey, we trust the people who’ve got skin in the game to be reliable with our data.”
That makes sense. So if I’ve got some spare drive space, how do I actually become a storage provider? The idea is that eventually anyone with extra storage space can become a provider.
What You Need to Run a Walrus Node
Okay, so what does that involve? You’d need to run what they call a Walrus node. Basically, a piece of software, right?
And you’d also need to stake some WAL tokens to show you’re serious. Exactly. Now the thing is, it’s not completely open to everyone just yet.
They’re rolling it out in stages. So the opportunity is coming. It is—definitely keep an eye out for that.
What Rewards Look Like in the Walrus Ecosystem
Got it. So this WAL token—that’s the key to the whole earning thing, right? Absolutely.
When you’re a storage provider and you’re part of the active network, you earn rewards. And those rewards are paid out in WAL tokens. Yes, for doing the work of storing those blobs of data, making sure they’re safe and sound, and making them accessible whenever someone needs them.
Hardware Requirements – Do You Qualify?
So that’s the passive income part, right? Yeah, you’re basically lending out your unused storage space and getting paid for it. Okay, that makes sense.
So let’s talk hardware. What do you need to run a Walrus node? That’s a good question.
And this is one of the areas where Walrus really wants to stand out. Okay, how so? They want to make it super easy for anyone to join in—even if you don’t have a ton of tech expertise.
No Server Farm? No Problem
So you don’t need a server farm in your basement? Not at all. They’ve repeatedly said that anyone with a bit of spare disk space should be able to participate.
So they’re really focusing on accessibility. Exactly. Do we know the actual minimum requirements—like what kind of CPU, RAM, or disk space you need?
We don’t have those precise specs yet. Okay. But the general idea is that they’re going to be pretty low.
Keep in mind you’ll need to run that Walrus node software. That’s how your computer talks to the network, right? And to be part of that active group of nodes, you’ll need to stake those WAL tokens, right?
The WAL Token, FROST Units, and Storage Integration
We talked about that. And there was another term, right? Something to do with WAL?
Oh yeah—FROST. It’s like the cents to WAL’s dollar. Okay, so one WAL is equal to a billion FROST.
Exactly. It’s just a way to handle smaller transactions and calculate rewards more precisely. That makes sense.
Now how does all my spare storage actually get used? I mean, how does it get integrated into the Walrus network?
This is where the connection to SUI gets really interesting.
SUI + Storage = A Digital Asset Revolution
Okay, tell me more. Your storage space on Walrus isn’t just some, you know, abstract thing. It’s like a real asset.
It is. Yeah. It’s represented as a resource on the SUI blockchain.
And those data blobs—they become SUI objects. So they’re like digital items that are tracked and managed on the blockchain. Exactly.
And that opens up a lot of possibilities for data ownership and control. That’s pretty cool.
So for someone listening who’s thinking, “All right, I’m in. I’ve got the space,” what should they do right now?
Stay in the Loop to Jump In Early
The best thing to do is stay up to date on all the latest from Walrus. So follow them on social media. Yeah.
Check out their Discord, follow their updates on X, and keep an eye on their website. That’s where they’ll announce when the node program fully opens up. Exactly.
And they’ll also release the specific hardware requirements there. So anyone who’s serious about becoming a storage provider should definitely stay tuned. Absolutely.
When Will You See a Return?
Okay, let’s talk about the money. When can someone realistically expect to see a return on their investment? There are a few key factors that are going to influence that timeline.
Okay, like what? Obviously the cost of your hardware is a big one. Then there’s the amount of WAL tokens you stake.
The more you stake, the more likely you are to be chosen as a storage provider. Exactly. And of course the rewards themselves can change, meaning how much WAL you get paid for storing data.
It All Depends on Network Growth
Right. It all depends on how much the network is used and the overall economics of the Walrus ecosystem. So the main way you make back your money and actually see a profit is through earning those WAL token rewards.
Exactly. Your ongoing earnings come from those WAL tokens. And we should mention the price of WAL—like any cryptocurrency—can fluctuate.
That’s going to affect your return too. Okay, so providing storage is maybe a longer-term strategy. It could be.
No Node? No Problem – Easy Ways to Earn
What about right now? Are there other ways to get involved and potentially earn some rewards? Absolutely. There are a few other options.
Okay, lay ’em on me.
The easiest one is just staking WAL tokens on a trusted exchange like BitGet.
Even if you’re not running a node, right?
You’re basically delegating your tokens to an existing node, and that helps secure the network. Exactly. And you get rewarded for it.
Staking, Airdrops, and More Passive Plays
Paid in WAL. That’s right. It’s much easier than setting up your own node.
And the Starry crypto video we saw showed just how simple it can be. Yeah, you just connect your SUI wallet and you’re good to go. Okay, staking is one option. What else?
Keep an eye out for airdrops. Bear drops? Yeah—free WAL tokens.
Free Money? Don’t Miss the Airdrops
The SUI ecosystem has a history of giving out airdrops to early adopters. Like when the SUI token itself launched, right? And with projects like Deepbook and SUI Name Service—so there’s a chance Walrus might do the same.
The co-founders of Mysten Labs have definitely hinted at it. Mysten Labs is the team behind SUI and Walrus, right? That’s right.
And they even did an initial airdrop for NFT holders. So if I’m staking WAL, I might be in line for some free tokens down the road? It’s definitely a possibility.
Go Deeper with Liquidity and Liquid Staking
That’s pretty cool. So we’ve got staking and potential airdrops. Anything else?
Well, you could look into providing liquidity. Liquidity? What does that mean?
It means making it easier for people to buy and sell WAL on decentralized exchanges. And you can earn a fee for doing that. You can.
It’s a bit more advanced, though. Okay, so maybe not for beginners, right? What about that liquid staking thing I read about?
Double Your Rewards with HawWAL
Oh yeah, liquid staking is pretty interesting. Tell me more. Platforms like Kadal let you stake your WAL and get another token in return.
So instead of holding regular WAL tokens, you’d have these other tokens, right? In this case, it’s called HawWAL. Okay, and what’s so special about these HawWAL tokens?
You can use them in other decentralized finance protocols, like lending or borrowing. Exactly. So you can potentially earn even more on top of your regular staking rewards.
That’s a clever way to make your staked tokens work harder for you. It is. You also mentioned lending and borrowing earlier, right?
Lending, Borrowing, and DeFi Magic
Platforms like Silent might allow you to earn interest on your WAL by lending them out to other people. Exactly. Or you could use your WAL as collateral to borrow other crypto assets.
The possibilities are pretty endless. They are, although the specifics—like the interest rates—will vary. Okay, one last thing about these different ways to earn: what about governance?
Uh, that’s more of a long-term thing. Okay, how so? As Walrus matures, they’ll likely move towards a more decentralized system.
Your Tokens, Your Voice
So the users would have more say in how the network runs. Exactly. And holding WAL tokens would probably give you voting rights.
So you could influence the direction of the project. And in some systems, participating in governance can earn you rewards. So holding WAL could eventually give you a real voice.
It’s definitely something to watch out for. Now, I remember reading that WAL is deflationary. You have a good memory.
WAL Supply Shrinks Over Time – Here’s Why
What does that mean exactly? It means the total supply of WAL tokens will decrease over time. Okay, and how does that happen?
Through burning mechanisms. Burning? Like they literally destroy some of the tokens?
Pretty much. Okay, why would they do that? Well, one reason is to discourage short-term staking.
Burn Mechanisms that Reward Long-Term Holders
What’s wrong with short-term staking? It can make the network less stable. Okay, so how does burning fix that?
If you stake your WAL and then unstake it too quickly, you get penalized. And part of that penalty is burning some of your tokens, right? And another part gets distributed as a reward to the people who are staking long term.
So it encourages people to stick around. Exactly. You mentioned there was another burning mechanism, right?
The other one has to do with node performance. So if a node is doing a bad job, they get penalized. Yeah.
Nodes Behaving Badly Get Slashed
If they’re consistently underperforming or being malicious, they can get slashed. Slashed? It means they lose some of their staked WAL.
And some of those slashed tokens are burnt, right? Which further reduces the total supply. Okay, so both of these mechanisms are designed to keep the network running smoothly and make sure everyone is playing by the rules.
Exactly. What about the initial distribution of WAL tokens? Who got them first?
A Community-First Approach to Token Distribution
Walrus is really big on being community-driven. Okay, so they gave a lot of the tokens to the community. Over 60% were allocated to the community.
Wow, that’s a lot. It’s through airdrops, subsidies, and a community reserve. What’s a community reserve?
It’s basically a pool of funds to support future development and growth. So they can fund grants for developers and other cool initiatives. Exactly.
Supply Cap, Circulating Tokens, and Subsidies Explained
What about the total supply of WAL tokens? How many are out there? The total supply is capped at 5 billion WAL.
And how many are in circulation right now? At launch, it was about 1.25 billion. So about 25% of the total, right?
The rest are subject to vesting schedules. Vesting? It means they get released gradually over time.
Okay. Okay. And what about those subsidies?
The subsidies are basically a way to encourage people to use the network early on. So it’s like a discount on storage, kind of, right? The idea is to make it more affordable for users to store their data on Walrus.
Everyone Wins with Early Adoption Incentives
Especially in the beginning, right? And it also helps to ensure that storage nodes can still make a profit. So everyone wins.
Exactly. It’s a way to bootstrap the network. Okay, let’s zoom out a bit. What’s the big picture here?
Why Walrus Could Be the Next Big Thing
What’s the potential for Walrus? I think Walrus has the potential to be huge in the decentralized storage space. Huge?
Yeah. I mean, think about Filecoin. That’s already a big player, right?
And Walrus is building on that but with some major improvements. Like what? It’s faster, more efficient, and it has this native integration with SUI, which is already gaining a lot of traction.
Exactly. And the need for decentralized storage is only going to grow, right? Absolutely.
The Future is Decentralized – Own Your Data
With all the data being generated these days and the growing concern about data ownership and security, decentralized storage seems like a no-brainer. It really does. And being a part of Walrus—whether you’re a storage provider or just staking your WAL tokens—it’s a chance to be a part of something big and potentially earn some passive income along the way.
So let’s recap. What are the main ways our listeners can earn with Walrus? Providing storage space is the big one, but that’s still in the works.
Here’s How to Start Earning Today
Right. For now, staking is the easiest way to get involved but potentially earn those future airdrops. Exactly.
And then there’s providing liquidity, liquid staking, and lending or borrowing. All built around the WAL token. That’s right.
And don’t forget about governance down the road. So holding WAL could give you some real decision-making power in the future. It could.
Final Advice: Stay Informed and Get In Early
What’s the single most important thing for anyone who wants to get involved? Stay informed. Follow Walrus online.
Yes. Read their documentation. Check out their website and join their Discord.
That’s where you’ll get all the latest news and announcements. Exactly. Well, this has been a fascinating deep dive into Walrus.
It really has. It’s an exciting project with a ton of potential. And it makes you think about the future of data, right?
It does. As we put more and more of our lives online, how are we going to control our data and who are we going to trust to keep it safe?
Decentralized solutions like Walrus offer a really compelling answer. They put the power back in the hands of the users. Exactly.
Yeah. So for everyone listening, think about that. Think about how you want to be a part of this new world of decentralized storage and how you might benefit from it.
It’s a fascinating space to watch, and we’re excited to see what the future holds for Walrus. We’ll be sure to keep you updated on any major developments. Thanks for joining us for this deep dive, and keep exploring.