Circle Introduces Gasless Transactions on Solana via Fee Payers

Alvin
Lang

Aug
10,
2024
05:33

Circle’s
new
Gas
Station
feature
on
Solana
eliminates
gas
fees
for
users
by
sponsoring
them
through
fee
payer
wallets.

Circle,
a
prominent
fintech
firm,
has
launched
a
new
feature
called
Gas
Station
on
the
Solana
blockchain,
allowing
developers
to
sponsor
gas
fees
for
their
users
through
fee
payer
wallets,
according
to

circle.com.
This
innovation
aims
to
eliminate
a
significant
barrier
for
blockchain
app
developers
and
users
by
simplifying
the
transaction
process.

Introduction

In
the
blockchain
ecosystem,
gas
fees
often
pose
a
challenge
for
developers
aiming
to
create
seamless
user
experiences.
Circle’s
Gas
Station
feature
addresses
this
by
enabling
developers
to
sponsor
these
fees,
thereby
enhancing
user
acquisition
and
retention.

What
is
a
Fee
Payer?

A
fee
payer
is
an
account
on
Solana
that
covers
transaction
fees
on
behalf
of
the
user.
This
eliminates
the
need
for
users
to
manage
native
tokens
like
SOL,
facilitating
a
smoother
interaction
with
blockchain
applications.

Advantages
of
Fee
Payers

• 
  Simplified
  onboarding:
  Users
  can
  start
  using
  the
  app
  without
  acquiring
  native
  tokens.
• 
  Increased
  user
  acquisition:
  Reducing
  initial
  steps
  encourages
  higher
  user
  engagement.

Circle’s
Implementation
of
Fee
Payers

Programmable
Wallets

Circle’s
Programmable
Wallets
offer
flexible
in-app
wallets
for
blockchain
activities,
allowing
users
to
send
and
receive
assets,
interact
with
smart
contracts,
and
mint
NFTs
without
handling
private
keys.

These
wallets
can
be
user-controlled
or
developer-controlled,
both
secured
by
multi-party
computation
(MPC)
technology
to
prevent
unauthorized
access.

Gas
Station

Circle’s
Gas
Station
simplifies
the
process
of
sponsoring
gas
fees.
Developers
can
create
policies
specifying
conditions
under
which
transactions
are
sponsored.
Gas
Station
uses
Solana
fee
payer
accounts
to
sponsor
these
fees
for
eligible
programmable
wallets.

How
Gas
Station
Supports
Fee
Payers

The
process
begins
with
the
wallet
creating
a
transaction
based
on
the
user’s
request
and
sending
it
to
Gas
Station.
The
transaction
is
then
signed
by
the
fee
payer’s
wallet
via
the
Key
Management
System
(KMS)
and
returned
to
the
user’s
wallet
for
final
signing.
The
fully
signed
transaction
is
broadcast
to
the
blockchain,
and
Gas
Station
updates
the
transaction
history
in
the
Developer
Console.

Guide
to
Using
Fee
Payers

Part
1:
Create
Developer-Controlled
EOA
Wallets
on
Solana

Developers
need
to
create
externally
owned
account
(EOA)
wallets
on
Solana
to
sponsor
transaction
fees.
Circle
provides
a
quickstart
guide
for
setting
up
these
wallets
on
testnet.

Part
2:
Source
Testnet
USDC
from
Faucet

Once
the
wallets
are
set
up,
developers
need
to
supply
them
with
testnet
USDC.
Circle
automates
this
step
on
testnet,
but
on
mainnet,
developers
can
transfer
USDC
to
the
wallet
and
set
up
a
Gas
Station
policy.

Part
3:
Send
a
Sponsored
Transaction

Developers
can
send
transactions
that
meet
policy
requirements,
covering
gas
fees
automatically
if
the
criteria
are
met.
This
allows
users
to
interact
with
the
app
without
managing
SOL
themselves.

Wrapping
Up

Developers
can
review
their
wallet
funds
and
gas
station
policies,
observing
how
much
gas
has
been
charged.
This
setup
simplifies
user
onboarding
and
encourages
engagement
by
eliminating
transaction
fees.

Benefits
of
Implementing
Fee
Payers

Onboarding
new
users:
Covers
initial
transaction
fees,
easing
user
onboarding.

Incentivizing
beneficial
transactions:
Sponsors
specific
actions
to
boost
network
growth
or
user
engagement.

Increasing
user
retention:
Provides
a
familiar
and
enjoyable
user
experience
by
removing
transaction
fee
barriers.

Conclusion

Fee
payer
wallets
offer
an
effective
way
to
sponsor
blockchain
transaction
fees,
enhancing
user
experience
and
engagement.
Circle’s
Programmable
Wallets
and
Gas
Station
feature
streamline
this
process,
making
it
easier
for
developers
to
manage
fees
on
behalf
of
users.

Image
source:
Shutterstock