The Walrus project has recently gained quite a bit of attention. Essentially, it is a decentralized storage protocol on the Sui blockchain, mainly aiming to solve the high costs of storing large files like AI data and NFTs.

What are its highlights? It transforms storage from a static asset into a programmable one, allowing smart contracts to directly interact with it. This indeed opens up some imaginative possibilities. Regarding token distribution, over 60% is allocated to the community, and it also incorporates a deflationary design to incentivize ecosystem participation. From this perspective, the approach is quite promising.

The background is indeed strong—having secured $140 million in funding from top-tier institutions like a16z, with official support from Sui, and actual projects already utilizing it. These are solid points that add to its credibility.

However, when it comes to risks, it’s important to be clear. The circulating supply is relatively high, and the market already has established storage protocols like Filecoin competing, making the landscape quite challenging. More importantly, the project's long-term success will depend on whether actual storage demand can grow, which cannot be determined by short-term market sentiment.