Skip to main content

About Sponsoring Transactions

Developers creating user-friendly hybrid apps and dApps on the Nodle Network have a choice: they can cover transaction costs or set aside funds for specific user actions. In practice, this means they can elect to pay all or a portion of their user’s transaction fees on the Nodle Chain. This makes it easy for users to use decentralized blockchains and enjoy the benefits, like having a public proof of their participation. It also saves them from dealing with complicated blockchain things like managing coins and fees. The ability to create a Nodle application without exposing their users to complex crypto concepts is the basis on which the sponsorship feature is developed. This feature also supports Web3 principles of decentralization and user transparency.

What is Sponsorship?

An individual creates a virtual fund reserve (called a pot) on the Nodle chain and allocates users to this digital pot. They also control how much the users can spend on the Nodle Network by setting limits. The individual creating the fund is called the “sponsor” as they are willing to put up the money to fund the transactions of the users they registered for their pot. These users need not have any wallet money of their own. The money comes from the sponsor who must actually have funds in their wallet before they can sponsor users.


Sponsors can pause the sponsorship at any time and terminate pots with no active users.

Key Features of Sponsoring Transactions

  • Accessibility: Any individual should be able to create a virtual fund (aka “pot”) to cover specific transactions for a set of registered users, and no special permissions are required for this. Note that this pot is just a representation of usage limits and it doesn’t get locked or reserved. Thus, it remains liquid at all times. However, the transaction will fail if there are no actual funds in the sponsor’s wallet
  • Batch registration: Sponsors can register users individually or in batches, offering flexibility and ease of use.
  • Robust user management: User accounts need not exist in the system or they don’t need funds to get started, minimizing barriers to entry. Sponsors can remove inactive users, ensuring that resources are allocated efficiently.
  • Fund control: Sponsors maintain control over the funds they provide, ensuring that they are used as intended. Reserve limits for pots or users can be used for transactions that require reservations or deposits.
  • Liquidity-friendly: Sponsors aren't required to hold the entire sponsorship amount in their wallets, promoting liquidity.
  • Decentralization: Users' actions through the sponsorship pallet remain attributed to themselves, ensuring a decentralized user experience.
  • Transaction control: Sponsors can specify the types of transactions they support, allowing for a tailored user experience. For example, NFTMinting, or AnySafe (which means safe transactions that are compliant with the sponsorship type, unlike the ones not controlled by the sponsorship).
  • Proxy mechanism: An internal proxy mechanism protects sponsors' wallets and ensures that the borrowed funds return to the sponsor.

Advantages of Sponsoring Transactions

This feature:

  • Significantly lower barriers to entry for enterprise and Web3 customers who want to use the Nodle Network
  • Doesn’t require detailed understanding of crypto concepts for the end user
  • Helps anyone to sponsor anyone as they see fit without any special permissions
  • Maintains high security by rejecting invalid transactions and preventing fund leaks