How are WAL payments distributed to storage nodes over time

$WAL payments from storage users are distributed to storage nodes and stakers gradually over the duration of the storage contract, typically across multiple epochs, to match the ongoing costs of data maintenance. Users pay the full amount upfront in WAL for a fixed storage period up to two years, locking it into smart contracts on Sui that then release portions of the funds as rewards at the end of each epoch, which lasts roughly two weeks. The distribution follows a structured economic model with four main rules to balance user pricing, node commissions, staker rewards, and protocol subsidies. First, a user pays a discounted price User_Price = Storage_Price x (1 - Subsidy_Rate) where the subsidy rate funded by a 10 percent token allocation keeps user costs low during early growth. Second, the node operator earns a commission Node_Revenue = Storage_Price * Subsidy_Rate * (1 - Commission_Rate) covering fixed costs like hardware while commissions incentivize reliable service.

Third, after deducting the node’s commission, the remaining revenue is paid to stakers delegated to that node Staker_Revenue = Storage_Price * Subsidy_Rate * Commission_Rate distributed proportionally based on each staker’s share of the node’s total delegated WAL. Fourth, the subsidy pool tops up the difference Subsidy_Payment = (Storage_Price - User_Price) * 2 * Subsidy_Rate ensuring nodes and stakers are fully compensated even if user fees alone fall short. These payments are streamed linearly per epoch, proportional to the data stored and the contract’s remaining time, so a one year contract releases rewards steadily rather than all at once. Epochs define the payout cadence At the end of each epoch, smart contracts on Sui settle rewards to nodes in the Current Committee elected via delegated proof of stake from WAL holders, based on uptime, availability proofs, and assigned data volume. Nodes with higher delegated stake get more data assigned, which means more revenue potential, while underperformers face future slashing partially burned to align incentives. Stakers earn their cut passively by delegating WAL to performant nodes, with rewards accruing proportionally to their stake relative to the node’s total. This intertemporal streaming design prevents front loading revenue which could lead to node churn after quick payouts and ties payments directly to sustained data availability. If data needs migration due to stake shifts or node changes, penalty fees apply partially burned and partially redirected to long term stakers, further reinforcing stability. Governance via WAL holders can adjust parameters like subsidy rates, commissions, and slashing to optimize the flow over time. $WAL #Walrus @WalrusProtocol