Introduction to Sponsorship

Network fees are the costs required to execute transactions, compensating network validators for processing and securing the blockchain. These fees are paid in the network’s native token, such as ADA on Cardano. While essential for incentivizing validators and maintaining network security, network fees can pose a challenge for end users, as they must hold tokens to cover these costs when interacting with applications.

To illustrate how much friction fees can add to your user experience, here’s an analogy: Imagine you’re trying to buy something on Amazon, when you get to the checkout screen, there is a new fee that you’ve never heard of, and you can only pay this new fee in a currency that you’ve also never heard of, and there are no instructions where to acquire this alien sounding currency. Adding fees to the purchase flow for a web3 asset adds this much friction for most users.

To address this challenge, Mesh Web3 Services offers a transaction sponsorship solution that enables developers to pay network fees on behalf of their users.

Sponsorship enables developers to create seamless user experiences by eliminating the need for end-users to hold tokens in their wallets for transactions. Instead, transactions inputs and network fees are deducted from the developer’s wallet, solving one of the most significant challenges in blockchain application development and enabling frictionless onboarding and interaction for end-users.

There are 2 types of sponsorship:

• Full Sponsorship: The developer pays for the network fees and the transaction inputs.
• Network Sponsorship: The developer pays for the network fees of the transaction.