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NO. 05 / Chains & infrastructure / FULL PAPER

The Cost of a Better Wallet

Gas sponsorship and batching redistribute costs and authority. Evaluate the complete task and the permissions that remain afterward.

Series period 2025.05Published 2026-10-18Updated 2026-10-194 min read

The series period is a retrospective topic label, not a historical publication date. Source observation and publication dates are identified separately. Full English edition updated on 19 October 2026.

The Cost of a Better Wallet · CryptoBridge Korea Research 05
In this paper
  1. Key findings
  2. What reducing wallet friction actually means
  3. Delegation moves authority as well as execution
  4. Where should free transactions end?
  5. Batch efficiency has an explanation cost
  6. Evaluate behavior after the subsidy
  7. What would change the assessment?
  8. Scope & limitations
  9. Sources

Key findings

  1. Protocol delegation capabilities do not guarantee that every wallet offers the same experience.
  2. Gas sponsorship reallocates costs; it does not eliminate them.
  3. Reduced interaction friction must be matched with clear authority, revocation and abuse controls.

What reducing wallet friction actually means

In April 2025 the Ethereum Foundation announced Pectra’s scheduled 7 May mainnet activation and highlighted EIP-7702. Code delegation can support experiences such as batching and gas sponsorship. A network upgrade date is not a release date for every feature in every wallet. [1]

Reducing approvals and asset-preparation steps matters, but fewer prompts do not necessarily mean safer permissions. A smoother screen can grant broader authority without the user understanding it. Convenience and increased exposure can arrive together.

Delegation moves authority as well as execution

EIP-7702 discusses the extensive access delegated code can gain. Delegation should not be understood as a temporary convenience limited to one submitted transaction. How authority is configured, replaced and constrained defines the product’s trust boundary. [2]

Ask which counterparties, assets, limits, expiry conditions and change records users can inspect. Separate protocol guarantees from restrictions enforced by delegated code or operational policy.

FIGURE 01The responsibility behind each convenience
Experience improvementCost or authority moves toCondition to verify
Gas sponsorshipService paying network costsLimits, abuse and budget exhaustion
Batch executionSeveral actions under one approvalComplete action summary and failures
Automated permission limitsModule or delegated-code policyScope, expiry and revocation
Recovery experienceAdditional actors and rulesAuthority, delays and notification

CBK analysis. This is an analytical framework, not observed customer performance or a market benchmark.

Where should free transactions end?

For 10,000 hypothetical tasks at $0.02 each, network sponsorship costs $200. If verification and support cost another $800, gas accounts for only 20% of total expense. These amounts illustrate the accounting, not actual network fees or customer economics.

A narrow objective such as a new user’s first successful task can make a pilot easier to evaluate. Unlimited recurring subsidies may attract reward-seeking activity; excessive checks can recreate the friction sponsorship was meant to remove. Track completion and abuse together.

Batch efficiency has an explanation cost

Combining several actions in one approval is useful, but a risky permission can look incidental when bundled with routine steps. Summarize asset movements and any authority that remains after the task, not only the immediate output.

For Korean users, explaining responsibility matters as much as translating terminology. If sponsorship, approval, delegation and recovery are all called a simple wallet, users cannot identify who can help when something goes wrong. Marketing and support should describe the same permission model.

Evaluate behavior after the subsidy

Sponsoring a first transaction may improve activation while merely postponing abandonment until fees return. Follow the same cohort through the sponsored period and afterward. Did users experience enough value to accept the actual cost?

Eligibility checks also have costs. Strong identity checks may be appropriate for some activities but disproportionate for every small transaction. Combine task ceilings, periodic account budgets and allowed actions around the specific purpose. This is an acquisition-cost and risk decision, not just a wallet feature.

FIGURE 02Observe the whole sponsorship cycle
PeriodMeasures to compare
Before sponsorshipAbandonment at signing and gas preparation
During sponsorshipCompletion, total cost and abnormal repetition
After sponsorshipPaid repeat usage and support requests
Expansion decisionIncremental customer value against total operations

CBK analysis. This is an analytical framework, not observed customer performance or a market benchmark.

What would change the assessment?

If a deployment combines narrow authority with high completion and low support cost, concerns about complexity weaken. If fewer clicks produce slower incident handling, convenience has been overstated. The relevant unit is the whole task.

Protocol improvements expand the experiment space. Economic benefit still depends on explaining who pays, who holds authority and who can intervene. Smart-account functionality alone does not certify an implementation’s security. [3]

Scope & limitations

This is technical and economic analysis, not a wallet security audit. Numerical examples are hypothetical. Protocol specifications and announcements establish capabilities, not guaranteed product outcomes.

CryptoBridge Korea analysis based on public materials. Source facts are distinguished from interpretation and hypothetical calculations. References to organizations or projects do not imply their sponsorship or review of this paper.

Sources & scope

  1. Ethereum Foundation, Pectra Mainnet Announcement ↗2025-04-23 · Accessed 2026-10-18Announcement of upgrade features and the 7 May 2025 activation schedule.
  2. EIP-7702, Set Code for EOAs ↗Created 2024-05-07; current specification reviewed · Accessed 2026-10-18Protocol delegation specification, not a security assessment of a wallet product.
  3. Safe, How do Safe Smart Accounts work? ↗Continuously updated · Accessed 2026-10-18Owners, thresholds, modules and guards; not certification of any individual configuration.