Fee Sponsors on Monad

DFNS Fee Sponsors now work on Monad. Pay gas for your users' wallets from a sponsor wallet, with the same Transfers API as every other network, and the two Monad-specific rules a sponsor needs to know.

Chris Sutton
Chris Sutton
| 4 min read

DFNS now supports Fee Sponsors on Monad. A platform can designate one of its DFNS wallets as a sponsor, fund it with MON, and pay the gas for transfers made from any number of other wallets. Users send USDC or any other asset on Monad without ever holding the network’s native token. The integration uses the same API as fee sponsorship on Ethereum, Solana, Stellar and the other networks DFNS supports, with two details specific to how Monad charges for gas.

Why fee sponsorship matters on Monad

Monad was built for payments at scale. Blocks arrive every 300 milliseconds, finality comes in 600 milliseconds, and fees run at a fraction of a cent. That is exactly the profile where a missing gas token hurts most. A user holding a stablecoin balance should be able to move it without first being taught to acquire MON, and a platform running thousands of wallets should not have to top each one up to keep it functional.

Fee Sponsors remove that friction. The platform keeps a small set of sponsor wallets funded with MON and uses them to pay for everyone else. Users see a transfer. The sponsor sees the gas.

How it works on Monad

Monad is fully compatible with the Ethereum Virtual Machine, and it supports EIP-7702, the standard that lets an externally owned account take on smart contract code. DFNS uses the same mechanism on Monad as on Ethereum, Base and the other EVM networks. When a wallet makes its first sponsored transfer, it is delegated to the DFNS smart account contract through EIP-7702. From then on, the sponsor wallet submits and pays for the transaction, while the sponsored wallet authorizes the action with its own key. The source code of the smart account is public at github.com/dfns/dfns-smart-account, and the contract was independently audited by RAID Square in May 2025, with no critical or high-severity findings.

To sponsor a transfer, create a fee sponsor from an existing Monad wallet, fund it with MON, and pass its ID when creating a transfer from any other Monad wallet in your organization.

POST /wallets/{walletId}/transfers
{
  "kind": "Erc20",
  "contract": "0x...",
  "to": "0x...",
  "amount": "1000000",
  "feeSponsorId": "fs-xxxxx-xxxxx-xxxxxxxxxxxxxxxx"
}

The sponsor and the sponsored wallet must be on the same network. By default, service accounts and organization users can use a fee sponsor when creating transfers. To let end users of delegated wallets benefit from sponsorship, create the sponsor with allowEndUser set to true. Fee sponsors can also be created and managed in the dashboard under Settings and Fee Sponsorship.

Two things that are different on Monad

Monad executes transactions asynchronously from consensus, and two rules follow from that design. Both matter to a sponsor.

Gas is charged on the limit, not on usage. On Ethereum, a transaction pays for the gas it actually consumes. On Monad, the amount deducted is the gas price multiplied by the gas limit the transaction declared, whether or not all of it was used. This is a deliberate defence against denial of service under asynchronous execution. For a sponsor, it means the cost of every sponsored transfer is known before it is sent, and it means gas limits should be set tightly. DFNS estimates gas for each sponsored transaction and applies a small Monad-specific margin rather than the generous buffers common on other EVM chains, so sponsors pay close to what the transaction needs.

A delegated wallet cannot spend its own MON below 10. Monad reserves a balance of 10 MON on every externally owned account to guarantee that in-flight transactions can be paid for. An account delegated through EIP-7702, which every sponsored wallet is, cannot make a transaction that lowers its own MON balance below that reserve. For the common case this changes nothing. A sponsored wallet that holds stablecoins and little or no MON works exactly as intended, because the sponsor pays the gas and the wallet’s MON balance never moves. The rule only applies if a sponsored wallet holding a small MON balance tries to send MON itself. In that case the transfer reverts unless the wallet keeps at least 10 MON afterwards. DFNS surfaces this before broadcast rather than letting the transaction fail onchain.

Policies, permissions and audit

A sponsored transfer involves two signatures, the sponsored wallet authorizing the action and the sponsor wallet paying for it. Both pass through the Policy Engine. Policies on the sponsored wallet govern the transfer as usual. Policies on the sponsor wallet govern its spending, which lets a platform cap what a sponsor may pay per period or require approval above a threshold. Every sponsored transfer appears in the history of both wallets, with the sponsor recorded, so finance teams can attribute gas costs precisely.

For high-volume flows, use one sponsor per sponsored wallet where possible. It lets DFNS schedule transactions more efficiently and improves throughput.

Getting started

Fee Sponsors on Monad are available now, on Monad mainnet and testnet, through the API and the dashboard. Monad joins Ethereum, Base, Arbitrum, Optimism, Polygon, BNB Smart Chain, Berachain, Flow EVM, Plasma, Solana and Stellar as networks where DFNS sponsors gas through one API.

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