Seamless Decentralized Payments With W5: Everything You Need to Know
A shift in the Web3 narratives has occurred in 2024. While initial discussions focused heavily on decentralization and disrupting traditional systems, the emphasis has now shifted towards user experience, accessibility, and practical utility.
The original ideals of decentralization and anonymity, while still important, are being balanced with the need for scalable, user-friendly solutions that can achieve mainstream adoption.
Consider the basic onboarding challenge for any blockchain. A new user wants to send or receive USDt. Typically, they would need to hold the native token, Toncoin, to cover the transaction fees. For someone new to blockchain, this adds complexity and an additional step that could deter users.
To address this challenge, Tonkeeper has introduced W5 Wallet, a new wallet standard that supports gasless transactions. With W5, users can cover transaction fees using the token which is already being transferred (e.g., USDt). This eliminates the need to hold Toncoin, simplifying the process and making it more accessible.
Gasless Payments in USDt with W5: How and Why
On May 30, Tonkeeper unveiled W5, a standard for gasless USDt payments on TON. This acts as a next step to Tonkeeper Battery, a feature that allows users to cover gas fees by “charging up” with in-app purchases. W5 was launched on July 25 and is now available to any TON builder who wants to enhance their dApps with an exceptionally smooth payment experience.
Tonkeeper, Installs and Monthly Active Users (MAU), Million
Our previous report about the launch of the native USDt on TON introduced the W5 standard:
W5 standard simplifies the transaction process by enabling users to pay network fees using the same token being transferred, eliminating the need to hold Toncoin to cover fees. This not only enhances accessibility but also significantly accelerates the adoption of blockchain for everyday financial activities.
The Open Platform. (2024). Native USDt on TON: Adoption and Market Dynamics Q2 2024 [Medium].
Beyond the headline feature of enabling gasless transactions, W5 standard supports up to 255 simultaneous transactions. This makes it highly efficient for use cases like transferring multiple NFTs or managing decentralized subscriptions.
The standard also reduces gas fees by 25% and supports account delegation and recovery, offering flexibility and convenience. This is especially useful in scenarios where users might need to delegate transaction permissions or recover lost access.
The introduction of subscription payments and low-cost multi-transfers further broadens the scope of applications that can be developed, making it easier to handle regular payments within the TON ecosystem.
The synergy between W5’s gasless feature and its support for high transaction volumes creates a powerful combination for developers. When combined with the ability to handle large transaction volumes efficiently, gasless transactions allow developers to build scalable, user-friendly dApps with a payment experience similar to traditional peer-to-peer payments or in-app purchases.
Why This Works: Ecosystem Balance and Long-Term Vision
It is important to note that W5 does not eliminate gas fees. Instead, it allows users not to worry about a wallet’s Toncoin balance when making transfers. Gasless payments using USDt on W5 wallet are slightly more expensive than paying directly with Toncoin using the same wallet standard.
Specifically, gasless USDt transactions cost around $0.10 with Battery and $0.14 with W5 at $7.00 per TON. The average fee for sending any amount of TON is 0.0055 TON (TON Docs), which translates to $0.038 at the same price.
The fee increase occurs because of additional steps involved in the process. However, the efficiency of W5 standard and TON’s ultra-low fees keep the final cost low enough that, for many users, the convenience of not needing to hold Toncoin outweighs the slight additional expense.
Why is TON the first blockchain to implement gasless payments?
First, the technical complexity of designing a seamless conversion mechanism that maintains network security and efficiency is a significant barrier. Many blockchains prioritize other developments or may lack the same level of integration with stablecoins that TON has achieved.
Furthermore, governance and consensus challenges within these blockchain communities could slow the adoption of such innovative features. Any change to fee structures would require broad stakeholder agreement and careful consideration of potential impacts on the ecosystem.
Conversely, TON has consistently prioritized user experience as one of the central aspects of its development strategy. By eliminating the need for new users to acquire Toncoin just for transaction fees, W5 can lower barriers to entry and attract more users to the TON ecosystem. This indirectly increases the utility and demand for TON in the long run, as users engage in other activities that require Toncoin.
Addressing the Need for a New Web3 Narrative
In 2024, several Web3 narratives have stalled, particularly those centered around the promise of full decentralization and total privacy. While these ideals were initially compelling, the reality of scaling such systems and achieving mass adoption has proven challenging.
Many projects now recognize the need for practical compromises, such as hybrid models that combine decentralization with more centralized elements for better user experience, security and regulatory compliance. As a result, the once-dominant narrative of complete decentralization has been tempered by the practical needs of today’s blockchain applications.
W5 may well be at the forefront of a fresh Web3 narrative because it addresses the critical need for usability and accessibility in blockchain technology. W5 shifts the focus from the traditional Web3 ideals of decentralization, creating a more user-centric and developer-friendly ecosystem.
TON’s connection with Telegram, which has nearly a billion users, leverages the W5 standard to introduce blockchain technology to a vast base of users seamlessly. This integration aims to create a bridge between Web2 and Web3, making blockchain interactions as simple as using any other Telegram feature.
Getting Started with W5
W5 is available in Tonkeeper and is expected to be supported by other TON-based wallets like TON Space and MyTonWallet in the near future. Users can already try W5 by updating Tonkeeper to the most recent version, tapping “Settings” and selecting “W5 Wallet” to add W5 and start using it like a regular wallet.
Builders are encouraged to learn more about W5’s technical specification at docs.ton.org and access W5 features through the TON API for integration into dApps. Learn more about W5:
- Tonkeeper’s Official Article on W5: Tonkeeper’s Gasless Payments — Explains the gasless payment feature and the role of the relay service.
- TON Documentation: TON Wallet Contracts — Provides technical details about W5, including features like plugin interfaces and transaction delegation.
- Tonkeeper’s Telegram Announcements: Tonkeeper News — Updates and announcements about W5 and its features.
- Wallet Address Versions: Tonkeeper Help Guide
- W5 Help Section: Tonkeeper Help Guide on W5.
