Circle Introduces Gasless Transactions on Solana via Fee Payers

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.