0068 XLS-68d: Sponsored Fees and Reserves

[mvadari]

Title:       Sponsored Fees and Reserves
Revision:    1 (2024-05-02)

Author:      Mayukha Vadari

Affiliation: Ripple

Sponsored Fees and Reserves

Abstract

As the blockchain industry grows, many projects want to be able to build on the blockchain, but abstract away the complexities of using the blockchain - users don't need to submit transactions or deal with transaction fees themselves, they can just pay the platform to handle all that complexity (though, of course, the users still control their own keys).

Some projects also want to onboard users more easily, allowing users to create accounts without needing to pay for their own account reserve or needing to gift accounts free XRP to cover the reserve (this could get rather expensive if it is exploited).

In order to handle these sorts of use-cases, this proposal adds a process for users to maintain control over their keys and account, but to have another account (e.g. a platform) submit the transaction and pay the transaction fee and/or reserves on their behalf. This proposal supports both account and object reserves.

Similar features on other chains are often called "sponsored transactions", "meta-transactions", or "relays".

1. Overview

Accounts can include signatures from sponsors in their transactions that will allow the sponsors to pay the transaction fee for the transaction, and/or the reserve for any accounts/objects created in the transaction.

We propose modifying one ledger object and creating one new transaction type:

• AccountRoot ledger object
• SponsorTransfer transaction type

The common fields for all ledger objects and all transactions will also be modified.

In addition, there will be a modification to the account_objects RPC method, and a new RPC method called account_sponsoring.

This feature will require an amendment, tentatively titled featureSponsor.

1.1. Terminology

• Sponsor: The account that is covering the reserve or paying the transaction fee on behalf of another account.
• Sponsee: The account that the sponsor is paying a transaction fee or reserve on behalf of.
• Owner: The account that owns a given object (or the account itself). This is often the same as the sponsee.
• Sponsored account: An account that a sponsor is covering the reserve for (currently priced at 10 XRP).
• Sponsored object: A non-account ledger object that a sponsor is covering the reserve for (currently priced at 2 XRP).
• Sponsor relationship: The relationship between a sponsor and sponsee.
• Sponsorship type: The "type" of sponsorship - sponsoring transaction fees vs. sponsoring reserves.

1.2. The Sponsorship Flow

In this scenario, the sponsor, Spencer, wants to pay the transaction fee and/or reserve for the sponsee Alice's transaction.

• Alice constructs her transaction and autofills it (so that all fields, including the fee and sequence number, are included in the transaction). She adds Spencer's account and sponsorship type to the transaction as well.
• Spencer signs the transaction and provides his signature to Alice.
• Alice adds Spencer's public key and signature to her transaction.
• Alice signs and submits her transaction as normal.

1.3. Recouping a Sponsored Object Reserve

In this scenario, the sponsor, Spencer, would like to re-obtain the reserve that is currently trapped due to his sponsorship of Alice's object.

Spencer can submit a SponsorTransfer transaction, which allows him to pass the onus of the reserve back to Alice, or pass it onto another sponsor.

1.4. Recouping a Sponsored Account Reserve

In this scenario, the sponsor, Spencer, would like to retrieve his reserve from sponsoring Alice's account.

There are two ways in which he could do this:

• If Alice is done using her account, she can submit an AccountDelete transaction, which will send all remaining funds in the account back to Spencer.
• If Alice would like to keep using her account, or would like to switch to a different provider, she (or Spencer) can submit a SponsorTransfer transaction to either remove sponsorship or transfer it to the new provider.

2. On-Ledger Objects: Common Fields

2.1. Fields

As a reference, here are the fields that all ledger objects currently have:

Field Name	Required?	JSON Type	Internal Type
LedgerIndex	✔️	string	Hash256
LedgerEntryType	✔️	string	UInt16
Flags	✔️	number	UInt16

We propose this additional field:

Field Name	Required?	JSON Type	Internal Type
SponsorAccount		string	AccountID

2.1.1. SponsorAccount

The SponsorAccount is the sponsor that is paying the reserve for this ledger object.

3. On-Ledger Object: AccountRoot

3.1. Fields

As a reference, here are the fields that the AccountRoot ledger object currently has.

Field Name	Required?	JSON Type	Internal Type	Description
Account	✔️	string	AccountID	The identifying (classic) address of this account.
AccountTxnID		string	Hash256	The identifying hash of the transaction most recently sent by this account.
AMMID		string	Hash256	The ledger entry ID of the corresponding AMM ledger entry, if this is an AMM pseudo-account.
Balance		string	Amount	The account's current XRP balance.
BurnedNFTokens		number	UInt32	How many total of this account's issued NFTs have been burned.
Domain		string	Blob	A domain associated with this account.
EmailHash		string	Hash128	The md5 hash of an email address.
FirstNFTokenSequence		number	UInt32	The account's Sequence Number at the time it minted its first non-fungible-token.
LedgerEntryType	✔️	string	UInt16	The value 0x0061, mapped to the string AccountRoot, indicates that this is an AccountRoot object.
MessageKey		string	Blob	A public key that may be used to send encrypted messages to this account.
MintedNFTokens		number	UInt32	How many total non-fungible tokens have been minted by/on behalf of this account.
NFTokenMinter		string	AccountID	Another account that can mint NFTs on behalf of this account.
OwnerCount	✔️	number	UInt32	The number of objects this account owns in the ledger, which contributes to its owner reserve.
PreviousTxnID	✔️	string	Hash256	The identifying hash of the transaction that most recently modified this object.
PreviousTxnLgrSeq	✔️	number	UInt32	The ledger index that contains the transaction that most recently modified this object.
RegularKey		string	AccountID	The address of a key pair that can be used to sign transactions for this account instead of the master key.
Sequence	✔️	number	UInt32	The sequence number of the next valid transaction for this account.
TicketCount		number	UInt32	How many Tickets this account owns in the ledger.
TickSize		number	UInt8	How many significant digits to use for exchange rates of Offers involving currencies issued by this address.
TransferRate		number	UInt32	A transfer fee to charge other users for sending currency issued by this account to each other.
WalletLocator		string	Hash256	An arbitrary 256-bit value that users can set.
WalletSize		number	UInt32	Unused.

We propose these additional fields:

Field Name	Required?	JSON Type	Internal Type
SponsorAccount		string	AccountID
SponsoredOwnerCount		number	UInt32
SponsoringOwnerCount		number	UInt32
SponsoringAccountCount		number	UInt32

3.1.1. SponsorAccount

The SponsorAccount field is already added in the ledger common fields (see section 2.1.1), but it has some additional rules associated with it on the AccountRoot object.

This field is included if the account was created with a sponsor paying its account reserve. If this sponsored account is deleted, the destination of the AccountDelete transaction must equal SponsorAccount, so that the sponsor can recoup their fees.

Note: The Destination field of AccountDelete will still work as-is if the account is not sponsored, where it can be set to any account.

3.1.2. SponsoredOwnerCount

This is the number of objects the account owns that are being sponsored by a sponsor.

3.1.3. SponsoringOwnerCount

This is the number of objects the account is sponsoring the reserve for.

3.1.4. SponsoringAccountCount

This is the number of accounts that the account is sponsoring the reserve for.

3.2. Account Reserve Calculation

The existing reserve calculation is:

$$ acctReserve + objReserve * acct.OwnerCount $$

The total account reserve should now be calculated as:

$$ \displaylines{ (acct.SponsorAccount \text{ ? } 0 : acctReserve) + \\ objReserve * (acct.OwnerCount + acct.SponsoringOwnerCount - acct.SponsoredOwnerCount) + \\ acctReserve * acct.SponsoringAccountCount } $$

4. Transactions: Common Fields

4.1. Fields

As a reference, here are the fields that all transactions currently have.

We propose these modifications:

Field Name	Required?	JSON Type	Internal Type
Sponsor		object	STObject

4.1.1. Sponsor

The Sponsor inner object contains all of the information for the sponsorship happening in the transaction.

The fields contained in this object are:

Field Name	Required?	JSON Type	Internal Type
Account	✔️	string	AccountID
Flags	✔️	number	UInt16
SigningPubKey		string	STBlob
Signature		string	STBlob
Signers		array	STArray

4.1.1.1. Account

The Sponsor.Account field represents the sponsor.

This field will be a signing field (it will be included in transaction signatures).

4.1.1.2. Flags

The Flags field allows the user to specify which sponsorship type(s) they wish to participate in. At least one flag must be specified if the Sponsor field is included in a transaction.

There are two flag values that are supported:

• 0x00000001: tfSponsorFee, sponsoring (paying for) the fee of the transaction.
• 0x00000002: tfSponsorReserve, sponsoring the reserve for any objects created in the transaction.

This field will be a signing field (it will be included in transaction signatures).

4.1.1.3. SigningPubKey and Signature

These fields are included if the sponsor is signing with a single signature (as opposed to multi-sign). This field contains a signature of the transaction from the sponsor, to indicate their approval of this transaction. All signing fields must be included in the signature, including Sponsor.Account and Sponsor.Flags.

Either Signature or Signers must be included in the final transaction.

There will be no additional transaction fee required for the use of the Signature field.

Signature will not be a signing field (it will not be included in transaction signatures, though it will still be included in the stored transaction).

4.1.1.4. Signers

This field contains an array of signatures of the transaction from the sponsor,'s signers to indicate their approval of this transaction. All signing fields must be included, including Sponsor.Account and Sponsor.Flags.

Either Signature or Signers must be included in the final transaction.

If the Signers field is necessary, then the total fee of the transaction will be increased, due to the extra signatures that need to be processed. This is similar to the additional fees for multisigning. The minimum fee will be $(\#signatures+1)*base\textunderscore fee$.

The total fee calculation for signatures will now be $( 1+\# tx.Signers + \# tx.Sponsor.Signers) * base\textunderscore fee$.

This field will not be a signing field (it will not be included in transaction signatures, though it will still be included in the stored transaction).

4.2. Failure Conditions

4.2.1. General Failures

• Sponsor.Signature is invalid
• Sponsor.Signers is invalid (the signer list isn't on the account, quorum isn't reached, or signature(s) are invalid)
• The sponsor account doesn't exist on the ledger
• An invalid sponsorship flag is used

4.2.2. Fee Sponsorship Failures

• The sponsor does not have enough XRP to cover the transaction fee

4.2.3. Reserve Sponsorship Failures

• The sponsor does not have enough XRP to cover the reserve (tecINSUFFICIENT_RESERVE)
• The transaction does not support reserve sponsorship (see section 4.4)

4.3. State Changes

4.3.1. Fee Sponsorship State Changes

The fee will be deducted from the sponsor instead of the sponsee. That's it.

4.3.2. Reserve Sponsorship State Changes

Any account/object that is created as a part of the transaction will have a Sponsor field.

The sponsor's SponsoringOwnerCount field will be incremented by the number of objects that are sponsored as a part of the transaction, and the SponsoringAccountCount field will be incremented by the number of new accounts that are sponsored as a part of the transaction.

The sponsee's SponsoredOwnerCount field will be incremented by the number of objects that are sponsored as a part of the transaction.

The SponsoredOwnerCount, SponsoringOwnerCount, and SponsoringAccountCount fields will be decremented when those objects/accounts are deleted.

4.4. Transactions that cannot be sponsored

All transactions (other than pseudo-transactions) may use the tfSponsorFee flag, since they all have a fee.

However, some transactions will not support the tfSponsorReserve flag.

• Batch (from XLS-56d)
  • It doesn't make any sense for Batch to support that flag. The sub-transactions should use tfSponsorReserve instead.
• All pseudo-transactions (currently EnableAmendment, SetFee, and UNLModify)
  • The reserves for those objects are covered by the network, not by any one account.

Also, many transactions, such as AccountSet, will have no change in output when using the tfSponsorReserve flag, if they do not create any new objects or accounts.

5. Transaction: SponsorTransfer

This transaction transfers a sponsor relationship for a particular ledger object's object reserve. The sponsor relationship can either be passed on to a new sponsor, or dissolved entirely (with the sponsee taking on the reserve). Either the sponsor or sponsee may submit this transaction at any point in time.

5.1. Fields

Field Name	Required?	JSON Type	Internal Type
TransactionType	✔️	string	UInt16
Account	✔️	string	AccountID
LedgerIndex		string	UInt256
Sponsor		object	STObject

5.1.1. LedgerIndex

This field should be included if this transaction is dealing with sponsored object, rather than on a sponsored account. This field indicates which object the relationship is changing for.

If it is not included, then it refers to the account sending the transaction.

5.1.2. Sponsor

The Sponsor field is already added in the ledger common fields (see section 4.1.1), but it has some additional rules associated with it on the SponsorTransfer transaction.

In this case, if Sponsor is included with the tfSponsorReserve flag, then the reserve sponsorship for the provided object will be transferred to the Sponsor.Account instead of passing back to the ledger object's owner.

If there is no Sponsor field, or if the tfSponsorReserve flag is not included, then the burden of the reserve will be passed back to the ledger object's owner (the former sponsee).

5.2. Ending the Sponsorship for a Sponsored Ledger Object

A sponsored ledger object will have the Sponsor field attached to it. Ending the sponsor relationship for a sponsored ledger object requires the LedgerIndex parameter, to specify which ledger object.

Two accounts are allowed to submit a SponsorTransfer relationship to end the sponsor relationship for a sponsored ledger object: either the sponsor for that object or the owner of that object (the sponsee).

5.3. Migrating a Sponsorship to a New Account

A sponsorship can be migrated to a new account by including the Sponsor field with the tfSponsorReserve flag. This can be done for either a sponsored account or a sponsored ledger object.

Two accounts are allowed to submit a SponsorTransfer relationship to migrate the sponsor relationship: the sponsor or the sponsee.

The sponsor will likely only rarely want to do this (such as if they are transferring accounts), but the sponsee may want to migrate if they change providers.

5.4. Failure Conditions

• If transferring the sponsorship, the new sponsor does not have enough reserve for this object/account.
• If dissolving the sponsorship, the owner does not have enough reserve for this object/account.
• The new sponsor does not exist.

5.5. State Changes

• The Sponsor field on the object is changed or deleted.
• The old sponsor has its SponsoringOwnerCount/SponsoringAccountCount decremented by one.
• The new sponsor (if applicable) has its SponsoringOwnerCount/SponsoringAccountCount incremented by one.
• If there is no new sponsor, then the owner's SponsoredOwnerCount will be decremented by one.

6. RPC: account_objects

6.1. Fields

The account_objects RPC method already exists on the XRPL. As a reference, here are the fields that account_objects currently accepts:

Field Name	Required?	JSON Type
account	✔️	string
deletion_blockers_only		boolean
ledger_hash		string
ledger_index		number or string
limit		number
marker		any
type		string

We propose this additional field:

Field Name	Required?	JSON Type
sponsored		boolean

6.2. sponsored

If this field is excluded, all objects, sponsored or not, will be included. If sponsored == True, only sponsored objects will be included. If sponsored == False, only non-sponsored objects will be included.

7. RPC: account_sponsoring

The account_sponsoring RPC method is used to fetch a list of objects that an account is sponsoring; namely, a list of objects where the SponsorAccount is the given account. It has a very similar API to the account_objects method.

Field Name	Required?	JSON Type	Description
account	✔️	string	The sponsor in question.
deletion_blockers_only		boolean	If true, the response only includes objects that would block this account from being deleted. The default is false.
ledger_hash		string	A hash representing the ledger version to use.
ledger_index		number or string	The ledger index of the ledger to use, or a shortcut string to choose a ledger automatically.
limit		number	The maximum number of objects to include in the results.
marker		any	Value from a previous paginated response. Resume retrieving data where that response left off.
type		string	Filter results by a ledger entry type. Some examples are offer and escrow.

8. Security

8.1. Security Axioms

Both the sponsee and the sponsor must agree to enter into a sponsor relationship. The sponsee must be okay with the sponsor handling the reserve, and the sponsor must be willing to take on that reserve. A signature from both parties ensures that this is the case.

A sponsor will never be stuck sponsoring an sponsee's account or object it doesn't want to support anymore, because it can submit a SponsorTransfer transaction at any point.

The sponsor's signature must always include the Account and Sequence fields, to prevent signature replay attacks (where the sponsor's signature can be reused to sponsor an object or account that they did not want to sponsor).

When sponsoring transaction fees, the sponsor must approve of the Fee value of the transaction, since that is the amount that they will be paying.

When sponsoring reserves, the sponsor's signature must include any aspects of the transaction that involve a potential account/object reserve. This would include the Destination field of a Payment transaction (and whether it is a new account) and the TicketSequence field of a TicketCreate transaction (since that dictates how many Ticket objects are created, each of which results in one object reserve).

A sponsee cannot take advantage of the generosity of their sponsor, since the sponsor must sign every transaction it wants to sponsor the ledger objects for. A sponsee also must not be able to change the sponsorship type that the sponsor is willing to engage in, as this could lock up to 500 of the sponsor's XRP (in the case of 250 tickets being created in one TicketCreate transaction).

An axiom that is out of scope: the sponsee will not have any control over a sponsorship transfer. This is akin to a loanee having no control over a bank selling their mortgage to some other company, or a lender selling debt to a debt collection agency.

8.2. Signatures

Since a fee sponsorship must approve of the Fee field, and a reserve sponsorship must approve of a broad set of transaction fields, the sponsor must always sign the whole transaction. This also avoids needing to have different sponsorship processes for different sponsorship types. This includes the non-signature parts of the Sponsor object (Sponsor.Account and Sponsor.Flags). The same is true for the sponsee's transaction signature; the sponsee must approve of the sponsor and sponsorship type.

A sponsor's Signature cannot be replayed or attached to a different transaction, since the whole transaction (including the Account and Sequence values) must be signed.

9. Invariants

An invariant is a statement, usually an equation, that must always be true for every valid ledger state on the XRPL. Invariant checks serve as a last line of defense against bugs; the tecINVARIANT_FAILED error is thrown if an invariant is violated (which ideally should never happen).

9.1. Tracking Owner Counts

A transaction that creates a ledger object either increments an account's OwnerCount by 1 or increments two separate accounts' SponsoringOwnerCount and SponsoredOwnerCount by 1. The opposite happens when a ledger object is deleted.

The equivalent also should happen with SponsoringAccountCount.

9.2. Balancing SponsoredOwnerCount and SponsoringOwnerCount

$$ \sum_{accounts} Account.SponsoredOwnerCount = \sum_{accounts} Account.SponsoringOwnerCount $$

In other words, the sum of all accounts' SponsoredOwnerCounts must be equal to the sum of all accounts' SponsoringOwnerCounts. This ensures that every sponsored object is logged as being sponsored and also has a sponsor.

10. Example Flows

Each example will show what the transaction will look like before and after both the sponsor and sponsee sign the transaction.

The unsigned transaction must be autofilled before it is passed to the sponsor to sign. Tooling can be updated to handle combining the sponsor and sponsee signatures, similar to helper functions that already exist for multisigning.

10.1. Fee Sponsorship

10.1.1. The Unsigned Transaction

Details

{
  TransactionType: "Payment",
  Account: "rOldB3E44wS6SM7KL3T3b6nHX3Jjua62wg",
  Destination: "rNewfcu9RJa5W1ncAuEgLH1Xpi4j1vzXjr",
  Amount: "20000000",
  Sequence: 3,
  Fee: "10",
  Sponsor: {
    Account: "rSponsor1VktvzBz8JF2oJC6qaww6RZ7Lw",
    Flags: 1
  }
}

10.1.2. The Signed Transaction

Details

{
  TransactionType: "Payment",
  Account: "rSender7NwD9vmNf5dvTbW4FQDNSRsfPv6",
  Destination: "rDestinationT6N5fJdaHnRqLpW1D8oFrZ",
  Amount: "20000000",
  Sequence: 3,
  Fee: "10",
  Sponsor: {
    Account: "rSponsor1VktvzBz8JF2oJC6qaww6RZ7Lw",
    Flags: 1,
    SigningPubKey: "03072BBE5F93D4906FC31A690A2C269F2B9A56D60DA9C2C6C0D88FB51B644C6F94", // rSponsor's public key
    Signature: "3045022100C15AFB7C0C4F5EDFEC4667B292DAB165B96DAF3FFA6C7BBB3361E9EE19E04BC70220106C04B90185B67DB2C67864EB0A11AE6FB62280588954C6E4D9C1EF3710904D"
  }
},
SigningPubKey: "03A8D0093B0CD730F25E978BF414CA93084B3A2CBB290D5E0E312021ED2D2C1C8B", // rAccount's public key
TxnSignature: "3045022100F2AAF90D8F9BB6C94C0C95BA31E320FC601C7BAFFF536CC07076A2833CB4C7FF02203F3C76EB34ABAD61A71CEBD42307169CDA65D9B3CA0EEE871210BEAB824E524B"

10.2. Account Sponsorship

The only way an account can be created is via a Payment transaction. So the sponsor relationship must be initiated on the Payment transaction.

10.2.1. The Unsigned Transaction

Details

{
  TransactionType: "Payment",
  Account: "rOldB3E44wS6SM7KL3T3b6nHX3Jjua62wg",
  Destination: "rNewfcu9RJa5W1ncAuEgLH1Xpi4j1vzXjr",
  Amount: "20000000",
  Sequence: 3,
  Fee: "10",
  Sponsor: {
    Account: "rSponsor1VktvzBz8JF2oJC6qaww6RZ7Lw",
    Flags: 2
  }
}

10.2.2. The Signed Transaction

Details

{
  TransactionType: "Payment",
  Account: "rOldB3E44wS6SM7KL3T3b6nHX3Jjua62wg",
  Destination: "rNewfcu9RJa5W1ncAuEgLH1Xpi4j1vzXjr",
  Amount: "20000000",
  Sequence: 3,
  Fee: "10",
  Sponsor: {
    Account: "rSponsor1VktvzBz8JF2oJC6qaww6RZ7Lw",
    Flags: 2,
    SigningPubKey: "03072BBE5F93D4906FC31A690A2C269F2B9A56D60DA9C2C6C0D88FB51B644C6F94", // rSponsor's public key
    Signature: "30440220702ABC11419AD4940969CC32EB4D1BFDBFCA651F064F30D6E1646D74FBFC493902204E5B451B447B0F69904127F04FE71634BD825A8970B9467871DA89EEC4B021F8"
  },
  SigningPubKey: "03BC74CA0B765281E31E342017D97B3F6743A05FBA23D2114B98FC8AD26D92856C", // rAccount's public key
  TxnSignature: "30440220245217F931FDA0C5E68B935ABB4920211D5B6182878583124DE4663B19F00BEC022070BE036264760551CF40E9DAFC8B84036FA70E7EE7257BB7E39AEB7354B2EB86"
}

10.3. Object Sponsorship

10.3.1. The Unsigned Transaction

Details

{
  TransactionType: "TicketCreate",
  Account: "rAccount4yjv1j2x79wXxRVXnFbwsjUWXo",
  TicketCount: 100,
  Sequence: 3,
  Fee: "10",
  Sponsor: {
    Account: "rSponsor1VktvzBz8JF2oJC6qaww6RZ7Lw",
    Flags: 2
  }
}

10.3.2. The Signed Transaction

Details

{
  TransactionType: "TicketCreate",
  Account: "rAccount4yjv1j2x79wXxRVXnFbwsjUWXo",
  TicketCount: 100,
  Sequence: 3,
  Fee: "10",
  Sponsor: {
    Account: "rSponsor1VktvzBz8JF2oJC6qaww6RZ7Lw",
    Flags: 2,
    SigningPubKey: "03072BBE5F93D4906FC31A690A2C269F2B9A56D60DA9C2C6C0D88FB51B644C6F94", // rSponsor's public key
    Signature: "30450221009878F3A321250341886FE344E0B50700C8020ABAA25301925BD84DDB5421D432022002A3C72C54BACB5E7DAEC48E2A1D75DCBB8BA3B2212C7FC22F070CCABAF76EC1"
  },
  SigningPubKey: "03BC74CA0B765281E31E342017D97B3F6743A05FBA23D2114B98FC8AD26D92856C", // rAccount's public key
  TxnSignature: "3044022047CB72DA297B067C0E69045B7828AD660F8198A6FA03982E31CB6D27F0946DDE022055844EB63E3BFF7D9ABFB26645AA4D2502E143F4ABEE2DE57EB87A1E5426E010"
}

Appendix

Appendix A: FAQ

A.1: Does the sponsee receive any XRP for the reserve?

No, there is no XRP transfer in a sponsorship relationship - the XRP stays in the sponsor's account. The burden of the reserve for that object/account is just transferred to the sponsor.

A.2: What happens if you try to delete your account and you have sponsored objects?

If the account itself is sponsored, then it can be deleted, but the destination of the AccountDelete transaction (in other words, where the leftover XRP goes) must be the sponsor's account. This ensures that the sponsor gets their reserve back, and the sponsee cannot run away with those funds.

If the sponsee still has sponsored objects, those objects will follow the same rules of deletion blockers. Whether or not they are sponsored is irrelevant.

If a sponsored object is deleted (either due to normal object deletion processes or, in the case of objects that aren't deletion blockers, because the owner account is deleted), the sponsor's reserve becomes available again.

A.3: What if a sponsor that is sponsoring a few objects wants to delete their account?

An account cannot be deleted if it is sponsoring any existing accounts or objects. They will need to either delete those objects (by asking the owner to do so) or use the SponsorTransfer transaction to relinquish control of them.

A.4: Does a sponsor have any powers over an object they pay the reserve for? I.e. can they delete the object?

No. If a sponsor no longer wants to support an object, they can always use the SponsorTransfer transaction instead.

A.5: What if a sponsee refuses to delete their account when a sponsor wants to stop supporting their account?

The sponsor will have the standard problem of trying to get ahold of a debtor to make them pay. They may be able to use SponsorTransfer transaction to put the onus on the sponsee, though the sponsee would need to have enough XRP in their account to cover the reserve.

A.6: What happens if the sponsor tries to SponsorTransfer but the sponsee doesn't have enough funds to cover the reserve?

If the sponsor really needs to get out of the sponsor relationship ASAP without recouping the value of the reserve, they can pay the sponsee the amount of XRP they need to cover the reserve. These steps can be executed atomically via a Batch transaction, to ensure that the sponsee can't do something else with the funds before the SponsorTransfer transaction is validated.

A.7: Would sponsored accounts carry a lower reserve?

No, they would still carry a reserve of 10 XRP at current levels.

A.8: Can an existing unsponsored ledger object/account be sponsored?

Yes, with the SponsorTransfer transaction.

A.9: Can a sponsored account be a sponsor for other accounts/objects?

No.

A.10: Can a sponsored account hold unsponsored objects, or objects sponsored by a different sponsor?

Yes, and yes.

A.11: What if I want different sponsors to sponsor the transaction fee vs. the reserve for the same transaction?

That will not be supported by this proposal. If you have a need for this, please provide example use-cases.

A.12: Won't it be difficult to add two signatures to a transaction?

This is something that good tooling can solve. It could work similarly to how multisigning is supported in various tools.

A.13. Why not instead do [insert some other design]?

See Appendix B for the alternate designs that were considered and why this one was preferred. If you have another one in mind, please describe it in the comments and we can discuss.

A.14: How is this account sponsorship model different from/better than XLS-23d, Lite Accounts?

• Sponsored accounts do not have any restrictions, and can hold objects.
• Sponsored accounts require the same reserve as a normal account (this was one of the objections to the Lite Account proposal).
• Lite accounts can be deleted by their sponsor.

A.15: How will this work for objects like trustlines, where multiple accounts might be holding reserves for it?

The answer to this question is still being explored. One possible solution is to add a second field, Sponsor2, to handle the other reserve.

A.16: How does this proposal work in conjunction with XLS-49d? What signer list(s) have the power to sponsor fees or reserves?

Currently, only the global signer list is supported. Another SignerListID value could be added to support sponsorship. Transaction values can only go up to $2^{16}$, since the TransactionType field is a UInt16, but the SignerListID field goes up to $2^{32}$, so there is room in the design for additional values that do not correlate to a specific transaction type.

Appendix B: Alternate Designs

B.1: Add a Sponsor to the account

This design involved updating AccountSet to allow users to add a Sponsor to their account (with a signature from the sponsor as well). The sponsor would then sponsor every object from that account while the field was active, and either the sponsor or the account could remove the sponsorship at any time.

This was a previous version of the spec, but it made more sense for the relationship to be specific to a transaction/transactions, to prevent abuse (the sponsor should decide what objects they want to support and what objects they don't want to support).

The current design also supports having different sponsors for different objects, which allows users to use a broad set of services and platforms, instead of being locked into one.

B.2: A Wrapper Transaction

There would be a wrapper transaction (tentatively named Relay), similar to Batch in XLS-56d, that the sponsor would sign. It would contain a sub-transaction from the sponsee.

It would look something like this:

FieldName	Required?	JSON Type	Internal Type
TransactionType	✔️	string	UInt16
Account	✔️	string	STAccount
Fee	✔️	string	STAmount
Transaction	✔️	object	STTx

This was a part of a previous version of the spec (inspired by Stellar's sandwich transaction design for their implementation of sponsored reserves), but the existing design felt cleaner. From an implementation perspective, it's easier to have the fee payer as a part of the existing transaction rather than as a part of a wrapper transaction, since that info needs to somehow get passed down the stack. Also, while the wrapper transaction paradigm will be used in XLS-56d, they should be used sparingly in designs - only when necessary - as their flow is rather complicated in the rippled code.

In addition, the signing process becomes complicated (as discovered in the process of developing XLS-56d). You have to somehow prevent the sponsor from submitting the as-is signed transaction to the network, without including it in the wrapper transaction.

B.3: A Create-Accept-Cancel Flow

The rough idea of this design was to have a new set of transactions (e.g. SponsorCreate/SponsorAccept/SponsorCancel/SponsorFinish) where a sponsor could take on the reserve for an existing object.

This design was never seriously considered, as it felt too complicated and introduced several new transactions. It also doesn't support adding a sponsor to the object at object creation time, which is a much smoother UX and never requires the owner/sponsee to hold enough XRP for the reserve.

[ObiajuluM]

Out of curiosity, wouldn't it be better if account x could submit a signed transaction on behalf account y so account y would bear the txn cost.

[wojake]

If I'm understanding your question correctly, you want Account X to sign a transaction using their own private key (correlating to Account X's public key) but Account Y would bear the transaction's cost and the transaction affects Account Y's holdings & settings?

You could already do that by delegating your account to another public key by adding them as a Regular Key or adding them on multi-sig list.

Otherwise, this proposal delivers that.

[mvadari]

This design was considered and discarded - see Appendix B.2. Both Account X and Account Y must agree to enter into this sponsorship relationship.

[tequdev]

Does the sponsored account itself not require 10XRP for account reserves?

If 10XRP is not required, then the new Account Reserve Calculation should subtract 1 acctReserve if the AccountRoot has SponsorAccount.

[mvadari]

Good catch - updated the equation.

[tequdev]

Perhaps acct.SponsorAccount ? 0 : acctReserve is correct.

[mvadari]

Oops - fixed

[tequdev]

Currently a PriceOracle object requires an incremental reserve of 1 or 2.

If an object with such a dynamic incremental reserve increases its reserve requirement from 1 to 2 (object update), is it necessary to specify a Sponsor field to the txn?

[mvadari]

I don't think it makes sense to allow the ability to split up the reserve - that adds a whole lot of extra complexity.

[tequdev]

Is it possible to update the PriceOracle object to increase the incremental reserve from 1 to 2 without explicitly specifying the Sponsor field?

[mvadari]

You mean for a sponsored object? I think you'd probably need another sponsor signature for that, otherwise you're essentially able to lock up their XRP without their permission.

[tequdev]

If a trust line is automatically created when an offer you created is executed, is it possible to have someone else sponsor it? How?

[mvadari]

Hmm probably not. But I'm open to ideas. I suppose theoretically there could be an additional field on OfferCreate for that.

[tequdev]

same for ttNFTokenAcceptOffer.

As a result of accepting a BuyOffer, a new NFTokenPage may be created for the Buyer, so we will need to think about sponsoring this as well.

[mvadari]

This feels like an addition that is not necessary in a V1 implementation of this feature.