Kana Paymaster For Aptos

Transaction Sponsorship on Aptos:

If users do not have their transactions sponsored, they will need to maintain an Aptos wallet balance in order to pay gas fees for transactions. This typically involves KYC procedures to purchase Aptos and transfer it to their wallet, introducing friction that may discourage adoption among Web2 users. Requiring an Aptos wallet balance for app usage could prevent many potential users from participating.

However, with Kanalabs paymaster apps built on Aptos have the option to sponsor transactions for their end users, removing this onboarding friction. This improves conversion rates and enhances the user experience. Developers deposit Aptos into a fund managed through the Kanalabs Paymaster. The Paymaster then handles the distribution of gas fee to facilitate sponsored transactions. By sponsoring user transactions, apps can lower barriers to entry and onboard more users without requiring them to manage their own Aptos wallets.

Apps can integrate with the Kanalabs paymaster to offer subscription plans to their users. By depositing funds to their dedicated feepayer wallets they can pay transaction fees for subscribed users. Wallets can offer monthly or annual subscription plans to their users, starting at affordable price points like $5-10 per month. Subscribed users receive a certain number of "free" transactions per month based on their plan.

Kanalabs paymaster API methods

  1. Deposit Funds: Sponsors can use this API method to deposit funds into the Kanalabs paymaster, which will be used to cover transaction fees.

  2. Check Allowance: Sponsors can check their account balances with this method, allowing them to monitor the funds available for covering transaction fees.

  3. Check User Subscription Status: Wallet extensions and dapps can use this API method to check the subscription status of their users. It helps them determine who qualifies for sponsored transactions.

  4. Sponsor Transactions: Wallets can initiate sponsored transactions for subscribed users through this API method. It enables seamless payment of transaction fees on behalf of users.

  5. Add to Whitelist: Sponsors can add users to a whitelist using this API method, allowing them to be included in the list of users eligible for sponsorship.

  6. Remove from Whitelist: This API method enables sponsors to remove users from the whitelist, excluding them from the list of users eligible for sponsorship.

These API methods facilitate the interaction between sponsors, and the Kanalabs paymaster, streamlining the process of sponsoring user transactions and managing financial aspects within the system.

Benefits for DApps

Here are 5 potential use cases for how dapps could utilize paymasters:

  1. Gaming - Game developers could sponsor transactions for basic gameplay, deposits, withdrawals, etc. to remove friction for users and encourage more engagement.

  2. Social Media - Apps like forums or social networks could sponsor posting, commenting, and basic account actions actions actions to lower onboarding hurdles and grow participation.

  3. Marketplaces - Transaction sponsorship could reduce barriers for users browsing listings, placing bids, or making purchases on decentralized marketplaces.

  4. Content/Subscription Services - Dapps providing media, publications, or other recurring access could sponsor initial signups and basic usage to gain more subscribers through reduced on-chain costs.

  5. Exchanges - Decentralized exchanges could utilize paymasters to sponsor deposits, trades, and withdrawals up to certain limits to attract greater trading volume and liquidity from users without crypto experience.

In each case, paymaster sponsorship streamlines the user experience by removing the need to manage or fund individual wallets, lowering the technical know-how required to participate in that sector's decentralized applications and networks. This could unlock greater mainstream adoption of blockchain-based services.

Benefits for Wallets

Paymasters also enable wallets and extensions to build sustainable monetization strategies:

  • Generate recurring subscription revenue from sponsored users.

  • Increase retention and engagement by further reducing transaction friction.

  • Improve competitiveness against free wallets by offering "freemium" tiers with sponsored transactions.

The Kanalabs paymaster model enables dapps and wallet extensions to easily offer sponsored transaction subscriptions and build sustainable monetization strategies, which can increase the adoption of their wallets and services.

Benefits for users

  1. Free or reduced cost transactions - By subscribing to wallet plans, users can have their transaction fees covered up to a certain number per month based on the plan. This effectively makes transactions free within the subscription limits.

  2. Increased access to DApps and services - Fee-free transactions enabled by subscriptions remove financial barriers for users. They can more freely explore, interact with and engage with DApps.

  3. Bundled subscription plans - Offering monthly/annual subscription tiers provides an affordable all-inclusive option for users rather than paying per transaction.

  4. Support for new users - The subscription model simplifies the onboarding process and makes the experience more seamless for newcomers to blockchain.

  5. Whitelist eligibility - Being added to a sponsor's whitelist qualifies users to benefit from transaction sponsorship through subscribed wallets.

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