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Let’s say I create a new empty wallet. Let’s call this wallet A.

In wallet B I have SOL and a Spl token. From wallet B I send to wallet A some of the SPL tokens and I pay SOL to initiate the token account. Then let’s say wallet A never receives any more SOL and I use wallet B to pay for transactions from wallet A. Is there something wrong with this setup? I’m curious to know if I can skip funding SOL to wallet A. Is it enough that we fund the token account?

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This is a perfectly fine situation! As long as wallet A never needs to pay for transaction fees or transfer SOL from its balance, it doesn't actually need to hold SOL.

This is a common situation with program-derived addresses -- you only use them to sign, and never to hold SOL or data.

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  • thank you for making that super clear.
    – Gsuz
    Commented Mar 11 at 20:23

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