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I'm evaluating Solana as an option to support

  • Generate an embedded, user owned, wallet per sign-up (BYO as secondary option).
  • Only deal with USDC in and between these wallets, i.e. no customer awareness of SOL
  • Option to sponsor transaction costs

I've built this out with an L2 on Ethereum using account abstraction + paymaster, but noticed fees are still a bit high and execution a little slow so trying Solana.

All was looking good after I found Octane for paying tx in tokens.

However I then discovered Solana account rental.

My question is do I need to pay rent on every account I generate for a user? What if I have 100k+ accounts? Or the alternative is to load them with some SOL that is above the min threshold? That would be like burning that SOL as would never be used or returned (don't control the wallets, user unlikely to touch it).

Also isn't rental seen as micro tax events? Nightmare to track at scale. I guess these would be the responsibility of each individual user since they own the keys? Again not ideal as I don't want them to be aware of anything but USDC.

Maybe I'm misunderstanding things but currently a blocker. Would appreciate any clarity or pointers as still fairly new.

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  • In practice, currently, a mechanism called "rent exempt account" is being used, which means you don't pay rent regularly, but accounts must hold a minimum amount of SOL to exist on the blockchain. Currently that amount is around 0.0012 SOL. So all account must have this amount in them, the SOL can be redeemed when the account is closed.
    – Serban
    Commented Oct 26, 2023 at 8:29
  • Thanks, so at current SOL price of $33 that would be $0.04 per embedded wallet, or $4k for 100,000 users. Not ideal but not too bad. However if (when) SOL price moves up that could cause issues, e.g. SOL $200 would be $24k per 100,000 users. This is burnt value as user won't see or touch it, just USDC. So basically the cost to onboard a user is dependent on how well SOL does. Hopefully this variable can be dialled down or incentives are misaligned. Also worth noting that $24k would be $0 on an eth L2.
    – uxcxdx
    Commented Oct 27, 2023 at 9:42
  • Without knowing your specific needs, it's hard to offer advice. Maybe this link can offer some broad solutions: squads.so/blog/account-abstraction-use-cases
    – Serban
    Commented Oct 27, 2023 at 14:37
  • Thanks for the link, some useful resources but unfortunately not relevant to this issue. I'd hoped I'd outlined my needs in the original post. Generate a user-owned wallet (e.g. MPC secured with passkey) for every user on my platform, and have USDC move in/out of these wallets (e.g Uber drivers or AirBnB hosts). Feels like a common use case for any platform dealing with payments.
    – uxcxdx
    Commented Oct 27, 2023 at 20:32
  • "user-owned wallet" and "MPC secured with passkey" are not directly interchangeable. If you need the user to own a Solana wallet then yes, you need to create an account(or more) for each user. If you want the user to control funds based on a secret, that can be achieved without new accounts for all users via the magic of smart contracts. Also, if users have USDC on their wallets, I don't see why they couldn't pay for their fees during onboarding.
    – Serban
    Commented Oct 28, 2023 at 11:55

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