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Blog

The Future of Smart Contracts Is Gasless

Account abstraction and sponsored transactions are shifting the gas burden from users to applications. This technical deep dive analyzes the infrastructure, economic models, and protocols like ERC-4337, Safe, and Biconomy driving this irreversible change.

introduction
THE PARADIGM SHIFT

Introduction

The next evolution of user-centric blockchain design moves execution logic off-chain, making gas fees an implementation detail, not a user burden.

Gasless user experience is the new baseline. Protocols like UniswapX and Particle Network abstract gas by using off-chain solvers and account abstraction, shifting the cost to dApps or relayers.

Intent-based architectures replace transaction specification. Users declare outcomes ('swap X for Y at best price'), and specialized networks like Anoma or Across's solver competition handle the messy, multi-chain execution.

Smart accounts become the standard. ERC-4337 and Safe{Wallet} enable sponsored transactions and batched operations, turning gas from a universal tax into a negotiable backend cost for applications.

Evidence: UniswapX processed over $7B in volume in its first six months, demonstrating user preference for gasless, MEV-protected swaps despite higher potential fees for fillers.

thesis-statement
THE PARADIGM SHIFT

The Core Thesis: Gas as a Customer Acquisition Cost

Gas fees are a user acquisition barrier that protocols must abstract away to compete for mainstream adoption.

Gas is a tax on interaction that creates immediate user friction. Every transaction requires users to hold a specific native token and understand fluctuating network fees, which is a cognitive and financial barrier to entry for non-crypto-native users.

Gas abstraction is the new CAC for smart contract platforms. Protocols like Ethereum's ERC-4337 (Account Abstraction) and Solana's fee subsidies treat gas sponsorship as a customer acquisition cost, absorbing the fee to onboard users seamlessly.

The winning L2s will be gasless. Chains that bake native account abstraction and sponsor transaction fees for users will outcompete those that don't. This is a direct subsidy, moving the cost from the user to the protocol's growth budget.

Evidence: The adoption of Pimlico's paymasters and Biconomy's SDK shows protocols are already paying millions in gas to subsidize user onboarding, treating it as a core growth metric, not an infrastructure cost.

market-context
THE GASLESS STACK

Market Context: The Infrastructure Is Live

The core infrastructure for gasless smart contract interactions is now operational, shifting the cost burden from users to applications.

The user pays nothing. Gasless transactions are live today via ERC-4337 Account Abstraction, which separates transaction execution from fee payment. Protocols like Biconomy and Stackup operate paymaster services that sponsor user operations, enabling applications to absorb or subsidize costs as a customer acquisition strategy.

Intent-based architectures abstract complexity. Frameworks like UniswapX and CowSwap let users specify a desired outcome (an 'intent'), while off-chain solvers compete to fulfill it optimally. This removes the need for users to manually manage gas, slippage, or cross-chain liquidity across bridges like Across and LayerZero.

The business model inverts. The cost center shifts from the end-user to the dApp or solver network. This mirrors web2's freemium model, where user acquisition costs replace gas fees as the primary growth metric, fundamentally altering product design and go-to-market strategies.

USER ABSTRACTION PRIMER

Gas Sponsorship Models: A Comparative Breakdown

A technical comparison of dominant architectures for subsidizing transaction fees, enabling gasless user experiences.

Core MechanismPaymaster (ERC-4337)Gasless Relayer (GSN)Intent-Based (UniswapX, Across)

Architectural Layer

Smart Contract Wallet

Relay Network

Solver Network

User Pre-Signs Transaction

User Signs an Intent / Message

Sponsor Pays Gas On-Chain

Typical Sponsor Cost Premium

10-30%

15-50%

0-5% (auction-based)

Requires Smart Contract Wallet

Native Support on L2s (e.g., Arbitrum, Optimism)

Primary Use Case

Generalized dApp Interactions

Permissioned App Users

Cross-Chain Swaps & Liquidity

deep-dive
THE PAYMASTER PROTOCOL

Deep Dive: The Mechanics of Sponsored Abstraction

Sponsored abstraction decouples transaction fees from the user, enabling gasless interactions by shifting the cost to a third-party paymaster.

User Experience is the Bottleneck. The requirement for native gas tokens creates a hostile onboarding flow, blocking mainstream adoption. Sponsored abstraction solves this by making the transaction fee payer a programmable variable.

ERC-4337 Enables Paymaster Logic. The Account Abstraction standard introduces a paymaster opcode that allows a smart contract to sponsor gas. This contract can implement complex sponsorship rules based on user, dApp, or transaction type.

Sponsorship Creates New Business Models. DApps like Pimlico and Biconomy act as paymaster services, subsidizing fees to acquire users. Protocols can sponsor specific actions, like minting an NFT or swapping on a DEX, as a marketing cost.

The Counter-Intuitive Security Model. The paymaster, not the user, bears the reversion risk for insufficient gas. This inverts the incentive, requiring robust gas estimation and fraud detection systems to prevent economic attacks.

Evidence: Base's Onchain Summer sponsored over 1 million gasless transactions via a paymaster, demonstrating the model's scalability for mass-user campaigns without requiring wallet funding.

protocol-spotlight
THE ABSTRACTION FRONTIER

Protocol Spotlight: Who's Building the Gasless Stack

The next wave of UX innovation shifts gas management from users to protocols, abstracting complexity and enabling new application models.

01

The Problem: Pay-to-Play UX

Users must acquire and manage native gas tokens, creating a massive onboarding and usability barrier. This fragments liquidity and caps TAM.

  • Friction: Requires pre-funding, chain switches, and constant balance management.
  • Fragmentation: Each chain's native token acts as a separate, non-productive asset.
  • CapEx vs OpEx: Users treat gas as a capital expense, not a marginal operating cost.
>90%
Drop-off Rate
$100M+
Idle Gas
02

ERC-4337: Account Abstraction Standard

Decouples transaction validation from fee payment, enabling sponsored transactions, batched ops, and social recovery.

  • Sponsorship: DApps or paymasters can subsidize user gas fees.
  • Batching: Multiple actions in one UserOp, paying gas once.
  • Flexible Auth: Use social logins or session keys, not just EOAs.
  • Key Entities: Stackup, Biconomy, Alchemy, Candide.
~5M
AA Wallets
-99%
Onboarding Steps
03

Intent-Based Architectures

Users declare what they want, not how to do it. Solvers compete to fulfill the intent, abstracting all execution complexity, including gas.

  • User State: "Swap X for Y at best rate."
  • Solver State: Handles routing, liquidity, and pays all cross-chain gas.
  • Key Protocols: UniswapX, CowSwap, Across, Anoma.
  • Result: True gasless, cross-chain UX.
$10B+
Volume
~500ms
Quote Latency
04

The Solution: Session Keys & Subsidization

Protocols grant temporary signing authority for specific actions, while a centralized relayer network handles and pays for gas.

  • Model: User signs a meta-transaction; relayer pays gas and submits.
  • Use Case: Perfect for gaming, social, and high-frequency DeFi.
  • Key Entities: Gelato Network, OpenZeppelin Defender, Pimlico.
  • Trade-off: Introduces relayer centralization and censorship risk.
<1s
Tx Finality
$0
User Cost
05

Modular Fee Markets (EIP-4844 & Beyond)

Separates execution gas from data availability (DA) fees, enabling L2s to create custom, stable fee models for users.

  • Blobs: Cheap, ephemeral data packets for L2 settlement.
  • Stable Fees: L2s can subsidize blob costs, offering predictable user pricing.
  • Future: Dedicated fee token ecosystems (e.g., pay gas in stablecoins).
  • Impact: Enables sustainable app-chain gas sponsorship models.
-100x
DA Cost
$0.001
Target Tx Cost
06

The Endgame: Invisible Infrastructure

Gas becomes a backend concern, akin to AWS data transfer fees. The stack winner will be the one that makes it disappear completely.

  • Bundlers & Paymasters: Become critical, commoditized middleware.
  • New Biz Models: Subscription, take-rate, and premium service tiers.
  • Risk: Centralization of fee payment creates new choke points.
  • Verdict: Gasless isn't free; it's a redistribution of cost and control.
100%
UX Focus
TBD
Security Model
counter-argument
THE REAL COST

Counter-Argument: The Centralization & Sybil Boogeyman

Gasless architectures shift transaction costs from users to relayers, creating new centralization vectors and attack surfaces.

Relayers become centralized bottlenecks. The entities subsidizing gas—like Pimlico, Biconomy, or protocol treasuries—control transaction ordering and censorship. This recreates the miner extractable value (MEV) problems of traditional blockchains within a smaller, permissioned set of actors.

Sybil attacks target subsidy models. A malicious actor can spam a network with signed, gasless transactions, draining the relayer's wallet. Without robust proof-of-humanity or stake mechanisms, systems like ERC-4337 account abstraction are vulnerable to this economic exhaustion.

The trust model regresses. Users must trust the relayer's liveness and honesty instead of the base layer's consensus. While projects like Etherspot and Stackup decentralize relay networks, the economic incentive to consolidate for efficiency remains a powerful force.

Evidence: The Ethereum Foundation's ERC-4337 bundler market is already dominated by a few providers, demonstrating rapid centralization. This mirrors the initial centralization of early sequencer networks like Arbitrum and Optimism before their decentralization roadmaps.

risk-analysis
GASLESS CONTRACTS

Risk Analysis: What Could Derail Adoption?

Removing gas fees is a paradigm shift, but introduces new attack vectors and systemic dependencies that could stall mainstream integration.

01

The Centralized Sequencer Problem

Gasless execution relies on a third-party sequencer to pay fees, creating a single point of failure and censorship. This reintroduces the trusted intermediary that decentralization aimed to eliminate.

  • Risk: A malicious or compromised sequencer can censor, reorder, or front-run transactions.
  • Dependency: Systems like EIP-4337 account abstraction and Layer 2 rollups (e.g., Arbitrum, Optimism) are vulnerable until decentralized sequencer sets are live.
1
Critical Point of Failure
~100%
Current Centralization
02

Economic Viability of Paymasters

Paymasters (fee sponsors) must have sustainable business models. If subsidizing transactions becomes unprofitable, the gasless model collapses.

  • Risk: Volatile gas prices or spam attacks can bankrupt paymaster contracts, halting user sessions.
  • Challenge: Requires sophisticated MEV capture (like UniswapX), subscription models, or opaque data monetization that users may reject.
$0
User Fee Tolerance
Unproven
Revenue Model
03

Security Model Erosion

Gas fees act as a spam and Sybil attack deterrent. Removing them shifts the security burden entirely to off-chain reputation or stake, which are easier to game.

  • Risk: DDoS attacks become trivial, forcing protocols to implement complex rate-limiting or proof-of-humanity gates.
  • Consequence: Increases reliance on centralized identity providers or zero-knowledge proofs, adding friction and new trust assumptions.
0
On-Chain Spam Cost
High
Collateral Requirement
04

Interoperability Fragmentation

Gasless standards are not universal. A contract on Ethereum with ERC-4337 won't work natively on Solana, Cosmos, or Bitcoin L2s, fracturing the user experience.

  • Risk: Developers must implement multiple gasless schemes, increasing complexity and audit surface.
  • Reality: Cross-chain intent systems like LayerZero and Axelar must bridge both state and fee payment logic, a largely unsolved problem.
10+
Competing Standards
High
Integration Overhead
05

Regulatory Ambiguity on Subsidization

Who is the regulated entity when a dApp pays your fees? Regulators may view fee sponsorship as a securities-like subsidy or payment for order flow, triggering compliance overhead.

  • Risk: SEC or MiCA could classify active paymasters as money transmitters or brokers, forcing KYC on all sponsored users.
  • Result: Kills permissionless access, the core value proposition of gasless UX.
High
Legal Uncertainty
Global
Jurisdictional Risk
06

User Abstraction Overload

Hiding complexity is good until it breaks. Gasless transactions obfuscate critical chain interactions, making it harder for users to audit what they're signing.

  • Risk: Increases susceptibility to phishing via malicious user operations (UserOps) that appear 'free'.
  • Trade-off: The convenience of account abstraction could lead to a decrease in user sovereignty and security vigilance.
Opaque
Transaction Stack
Increased
Phishing Surface
future-outlook
THE GASLESS FUTURE

Future Outlook: The 24-Month Horizon

Smart contract execution will decouple from native token payments, shifting the cost burden to applications and solvers.

Gas abstraction becomes standard. Users will not hold native gas tokens. Protocols like ERC-4337 Account Abstraction and Particle Network's Universal Account will enable apps to sponsor transactions via stablecoins or credit systems.

Intent-centric architectures dominate. Users declare outcomes, not transactions. This shifts complexity to off-chain solvers and fillers, as seen in UniswapX and CowSwap, making the user experience gasless by design.

The fee market inverts. Validators and sequencers will compete for order flow based on execution quality, not just fee priority. This creates a subsidized user acquisition model where dApps pay for user interactions to drive growth.

Evidence: The combined volume for intent-based protocols (UniswapX, 1inch Fusion, CowSwap) exceeded $50B in 2023, proving demand for gasless, MEV-protected swaps.

takeaways
THE GASLESS FRONTIER

Key Takeaways for Builders and Investors

Gas fees are a UX and economic dead-end. The next wave of adoption requires abstracting them away entirely.

01

The Problem: Gas Fees Are a Tax on Innovation

Every new user is a churn risk at the first transaction prompt. Gas creates unpredictable costs, breaking composability and capping application complexity.

  • User Churn: >60% of potential users abandon transactions at the gas fee screen.
  • Economic Drag: Projects lose 10-30% of potential revenue to meta-transaction overhead and subsidization programs.
  • Innovation Ceiling: Complex multi-step DeFi operations become economically unviable.
>60%
User Churn
10-30%
Revenue Drag
02

The Solution: Intent-Based Architectures (UniswapX, CowSwap)

Shift from transaction execution to outcome declaration. Users sign what they want, not how to do it. Solvers compete to fulfill the intent, paying gas and taking MEV as profit.

  • User Pays in Output: Fees are deducted from the final received asset, eliminating the need for a native token balance.
  • Solvers Optimize: Results in better prices and guaranteed execution via batch auctions and MEV capture.
  • Chain-Agnostic: Intents can be fulfilled across any liquidity source (EVM, Solana, Cosmos) without user bridging.
$10B+
Processed Volume
~500ms
Solver Latency
03

The Infrastructure: Paymasters and Account Abstraction (ERC-4337)

Smart contract wallets with sponsored transactions. A third-party (dApp, wallet, protocol) can pay gas fees on behalf of the user, enabling subscription models and seamless onboarding.

  • Sponsored Sessions: Users can interact for a set period without ever seeing a gas prompt.
  • Flexible Payment: Fees can be paid in any ERC-20 token, not just the native chain token.
  • Bundler Market: A new infrastructure layer emerges, with bundlers competing on inclusion and efficiency.
~5M
AA Wallets
-99%
Onboarding Friction
04

The New Business Model: Abstraction as a Service

Gasless isn't free—it's a shifted cost center. The winning protocols will monetize the abstraction layer itself.

  • Relayer Networks: Services like Gelato, Biconomy, and LayerZero's DVN charge for guaranteed, fast execution.
  • Subscription SaaS: DApps offer premium 'gas-free' tiers, baking the cost into a flat monthly fee.
  • Intent Monetization: Solvers and fillers (Across, UniswapX) capture value from flow routing and MEV.
$100M+
Annualized Fees
New TAM
Market Creation
05

The Security Shift: From Validators to Verifiers

Gasless architectures move trust from chain validators to intent solvers and state verifiers. Security models must evolve.

  • Solver Reputation: Systems require robust slashing and bonding to prevent malicious fulfillment (e.g., CowSwap's CoW AMM).
  • Verification Complexity: Users must trust the fulfillment path is optimal, not just valid. This requires new transparency tools.
  • Centralization Risk: Efficient solving favors large, capital-rich entities, creating potential new points of failure.
New Attack
Vectors
Solver Bond
>$1M
06

The Endgame: Invisible Infrastructure

The final state is where users never think about chains or gas. Applications are judged purely on utility, not underlying blockchain mechanics.

  • Mass Adoption On-Ramp: Web2 users can onboard with social logins and credit cards, completely unaware of gas.
  • True Composability: Applications can seamlessly integrate services across any chain, as cost and complexity are abstracted.
  • Developer Freedom: Builders can design complex state transitions without worrying about gas economics for their users.
1B+
Potential Users
0 Gas
Awareness
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