Onchain Billing for Staking APIs: Lessons from 2025’s Developer Platforms

Short summary: In 2025, staking APIs finally moved billing onchain. This post distills what actually shipped (and worked) across Coinbase, Figment, Kiln and the EigenLayer ecosystem—plus concrete integration patterns, code-level examples, and a production checklist to make your own onchain billing observable, auditable, and cost‑efficient.

Why this matters now

Two shifts in 2025 turned onchain billing for staking from “nice idea” to table stakes:

• Platforms exposed fee‑split contracts as the validator’s fee recipient, removing manual invoicing and turning revenue share into deterministic onchain flows. Coinbase’s “Enhanced Onchain Billing” for Dedicated ETH staking is a good example: integrators attach a Plan ID and a reward‑split contract auto‑deploys and starts distributing execution‑layer rewards per percentages. (coinbase.com)
• The Ethereum Pectra upgrade plus paymaster tooling and faster USDC settlement (CCTP v2) cut operational friction: CL control and compounding via EIP‑7002/7251, gas sponsorship with ERC‑4337 paymasters, and near‑instant USDC treasury settlement across chains. (blog.ethereum.org)

What follows is a practical map of patterns, pitfalls, and best emerging practices we’ve seen across real 2025 launches.

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What “onchain billing” means for staking APIs in 2025

• Split only what the protocol pays to the fee recipient: execution‑layer (EL) tips and MEV. Consensus‑layer (CL) rewards follow protocol rules: they accrue/compound on the beacon chain and (depending on credentials) sweep to the withdrawal address. EL pays out immediately to the configured fee recipient. This is why onchain billing usually targets EL flows. (coinbase.com)
• Fee‑split contracts become the validator’s fee recipient. The split contract is stateless (or “zero‑balance”) between distributions, forwards rewards, and enforces the commercial split. This is now standard across multiple providers. (docs.cdp.coinbase.com)
• Reward distribution cadence is adjustable. Example: Coinbase initiates monthly distributions but lets integrators trigger distributions themselves onchain any time. (docs.cdp.coinbase.com)

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What changed in 2025 that made this viable

• Pectra went live on May 7, 2025, enabling:
  • EIP‑7002: execution‑layer–triggerable validator exits by the withdrawal credential (better safety in delegated/enterprise flows).
  • EIP‑7251: higher effective balance and compounding up to 2,048 ETH per validator (fewer validators to manage, simpler accounting).
  • EIP‑6110: deposit processing ~13 minutes vs ~9 hours pre‑Pectra (faster go‑live). (blog.ethereum.org)
• ERC‑4337 paymasters matured operationally; vendors and first‑party offerings (e.g., Coinbase Paymaster, Alchemy Gas Manager) made gasless distribution practical with clear billing models. (docs.cdp.coinbase.com)
• Circle’s CCTP v2 cut cross‑chain USDC settlement to seconds and is now the canonical version; this matters when your fee‑split contract pays to addresses on L2s or when you repatriate revenue to a treasury chain. (circle.com)
• Restaking platforms hardened economics. EigenLayer launched slashing and then “Redistribution,” and introduced rewards upgrades and multi‑chain verification—so operators/integrators could rely on programmable incentives and non‑L1 deployments. (coindesk.com)
• Regulatory clarity: On May 29, 2025, the SEC’s Division of Corporation Finance issued a statement that specified certain protocol staking activities do not involve an offer and sale of securities, strengthening the case for non‑custodial, onchain, programmatic flows. (sec.gov)

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Concrete platform patterns to copy (or avoid)

1) Coinbase Staking API: Plan‑ID driven fee‑split contracts

• How it works

  • You define a Reward Distribution Plan with percentages and payout addresses.
  • When you stake (Dedicated ETH), include fee_recipient_address and reward_splitter_plan_id. Coinbase deploys the fee‑split contract as the validator’s EL fee recipient. Rewards are split automatically; CL flows to your withdrawal address. (docs.cdp.coinbase.com)

• Minimal example (TypeScript)

  import { Coinbase, ExternalAddress, StakeOptionsMode } from "@coinbase/coinbase-sdk";
  
  const addr = new ExternalAddress(Coinbase.networks.EthereumHoodi, "WALLET_ADDRESS");
  const planId = "PLAN_ID";
  const feeRecipient = "END_USER_ADDRESS";
  
  const op = await addr.buildStakeOperation(
    32,
    Coinbase.assets.Eth,
    StakeOptionsMode.NATIVE,
    { fee_recipient_address: feeRecipient, reward_splitter_plan_id: planId }
  );
  await op.wait();
  

  Under the hood, this provisions the validator and sets the split contract as EL fee recipient—billing lives onchain. (docs.cdp.coinbase.com)

• When to use

  • Wallets, exchanges, or enterprise portals that want non‑custodial staking with deterministic revenue share and minimal new contract surface area.

2) Figment On‑Chain Billing: zero‑balance pass‑through splitters + reporting APIs

• Figment’s audited fee‑splitter contracts set the validator’s EL fee recipient to a pass‑through contract that splits to N parties; each withdrawal address gets its own splitter. APIs expose Net vs. Gross Rewards tailored for accounting and forecasting. (docs.figment.io)
• Useful APIs
  • Net Rewards API: only distributed (settled) amounts—what hit your wallet.
  • Gross Rewards API: accrued totals incl. pending items—use for performance analysis.
  • Add Address API: register staking wallets and the effective fee split. (docs.figment.io)
• When to use
  • You need validator‑level reconciliation and externalized “proof of payout” that finance teams can tie to invoices/GL.

3) Kiln “Integration Contract” and Fee‑Splitter Factory: highly configurable monetization

• Kiln lets partners own an integration contract that configures:
  • end‑user fee/commission,
  • commission splits across stakeholders,
  • weighting across multiple operator pools,
  • both EL and CL fee‑recipient pathways via deterministic CREATE2 receivers. (docs.kiln.fi)
• Native ETH staking with onchain fee‑splitting and Pectra features (e.g., partial withdrawals, compounding) are explicitly supported in their 2025 docs. (docs.kiln.fi)
• When to use
  • Platform distributors who need programmatic revenue routing, multi‑operator hedging, or white‑label control.

4) StakeWise V3 Vaults: fee splitters as first‑class objects

If you’re building on vault‑based staking, StakeWise exposes reward splitters you can query and manage via SDK, making fee recipients composable building blocks. (docs.stakewise.io)

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Integration patterns we recommend (with 2025‑ready details)

Pattern A — EL‑only split, CL flows to withdrawal address

• Set the validator’s fee recipient to your split contract.
• Keep CL untouched to maintain protocol‑native compounding or periodic sweeps (Pectra’s EIP‑7251/6110 improves both ops and timing).
• Observe with a Net vs. Gross lens to resolve monthly statements to chain data. (coinbase.com)

Why this works: You piggyback on the protocol’s immediate EL payouts and avoid interference with CL logic, simplifying audits and minimizing contract risk.

Pattern B — Dual‑path receivers (EL + CL) via CREATE2

• When you need CL‑level programmability (e.g., institutional policy around partial exits and automated treasury actions), compute deterministic recipients for both EL and CL and forward into an upgrade‑controlled dispatcher (Kiln’s approach).
• Use predictable addresses before deployment so validators can be configured ahead of time. (github.com)

Cautions: Keep dispatcher upgrade rights constrained (e.g., timelock + multisig), log distribution as events for immutable audit trails, and avoid holding balances on the dispatcher outside of distribution windows.

Pattern C — Restaking revenue multiplexing (EigenLayer Rewards v2)

• AVSs can specify reward time ranges, weights per strategy, and payout token. Your operator or integrator must map these to per‑customer entitlements. Do not hardcode a single token path—EigenLayer rewards are now multi‑token and time‑bounded. (mpost.io)
• With slashing and “Redistribution,” you may receive non‑proportional clawbacks or reimbursements—treat them as separate journal lines and surface them in customer‑visible statements. (coindesk.com)

Pattern D — Cross‑chain settlement to treasury with CCTP v2

• If your split contract pays out on Ethereum but you settle revenue to an L2 treasury (e.g., Base) or an exchange‑connected chain, CCTP v2 lets you bridge USDC in seconds with hooks to auto‑swap or route flows. Use it after you batch/aggregate micro‑rewards. (circle.com)

Pattern E — Gasless distributions via ERC‑4337 paymasters

• For UX, let customers trigger “distribute()” or “claim()” without holding ETH. Coinbase’s Paymaster exposes clear billing: actualGasUsed × ethPriceUsd × 1.07 in USD billing; Alchemy offers similar at scale. Implement per‑op caps, allowlists, and observability for sponsored ops. (docs.cdp.coinbase.com)

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A tale of two builds (end‑to‑end examples)

Example 1 — A wallet adds Dedicated ETH staking with onchain splits (2‑week sprint)

• Goal: 80/20 split where 80% of EL rewards go directly to the end user, 15% to the wallet, 5% to the staking provider; CL rewards sweep to the user’s withdrawal address.
• Implementation:
  1. Define a Reward Distribution Plan in the provider portal; get a Plan ID.
  2. At stake time, pass planId + endUserAddress; the split contract is set as fee recipient.
  3. Show a “Pending first distribution” banner; expose a “Trigger distribution” button that calls the splitter (sponsored via your paymaster).
  4. Monthly: reconcile Net Rewards (EL) with chain logs; CL is separate and visible in your “staking balance” component. (docs.cdp.coinbase.com)
• Notes:
  • MEV/priority tips variability means revenue fluctuates with network conditions—set expectations in product copy. (ethereum.org)
  • Gasless distribution cost model: estimate sponsorship using past actualGasUsed for distribute() and apply business rules (per‑user daily cap). (docs.cdp.coinbase.com)

Example 2 — An exchange rolls out white‑label native staking with Kiln + Pectra features (quarter‑long rollout)

• Goal: Offer native validators with compounding (0x02), partial withdrawals, and partner monetization:
  • 8% of EL rewards as service fee, split 60/40 (exchange/partner).
  • Route 70% of EL rewards to the user. CL compounding enabled up to the new effective balance.
• Implementation:
  1. Deploy an Integration Contract via Kiln’s factory; set fee, recipients, and multi‑operator weights (e.g., 70% OperatorA, 30% OperatorB).
  2. Use deterministic CREATE2 recipients so EL/CL fee endpoints are known pre‑activation.
  3. Add USDC treasury settlement to Base via CCTP v2 when EL payouts exceed a threshold; settle weekly. (docs.kiln.fi)
• Notes:
  • Expose a “Compounding enabled” badge and show reduced validator count after consolidation—this is a Pectra‑era benefit your customers can see. (blog.ethereum.org)

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Observability and reconciliation: the data you must capture

• Payout traceability
  • Fee recipient address(es) per validator
  • Split contract address per withdrawal address/entity
  • Distribution tx hashes and event logs (amounts per recipient, token)
  • Source block and builder/relay metadata for EL reward context (MEV tips vs. priority fees) (ethereum.org)
• Accrual vs. cash basis
  • Use provider “Gross” APIs for accrual views and “Net” APIs for settled cash. Reconcile to Etherscan logs for each split contract. (docs.figment.io)
• Gas sponsorship logs
  • Store UserOperation hashes, simulate outcomes, and map to USD billing (actualGasUsed × ethPriceUsd × 1.07). Alert on outliers. (docs.cdp.coinbase.com)

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Security, risk, and governance in 2025

• Slashing and restaking
  • With EigenLayer’s slashing live—and “Redistribution” making clawbacks programmable—treat AVS earnings and penalties as separate ledgers, with customer‑facing visibility and dispute windows. Build internal tools to forecast the impact of operator set changes. (coindesk.com)
• Contract surface
  • Prefer zero‑balance pass‑through splitters and immutable/role‑limited logic where possible; if you need upgradeability, use timelocks and documented runbooks for emergency patches (recent industry events underscore why orderly exits and control transparency matter). (docs.figment.io)
• Compliance posture
  • The SEC’s May 29, 2025 statement is a positive signal for protocol staking activities at the non‑custodial layer; keep counsel looped in on revenue recognition for EL/CL flows and on any AVS‑related tokens you distribute. (sec.gov)

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Cost controls and UX: what actually works

• Batch and sponsor wisely
  • Sponsor gas for user‑triggered distributions only when payouts exceed a threshold; otherwise, batch monthly. Track average distribute() gas and mark up UX copy with ETA and cost coverage rules. (docs.cdp.coinbase.com)
• Use CCTP v2 hooks
  • On distribution finalization, auto‑swap a fixed portion of the platform’s share to USDC and bridge to treasury. Run a canary on low amounts first; alert on transfer latency >30s. (circle.com)
• Educate on EL variability
  • Tie user expectations to MEV/tips conditions—more chain activity typically means higher EL rewards; expose a rolling 7‑day EL/CL split chart in‑app. (coinbase.com)

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Emerging best practices (2025)

• Product
  • Show users exactly where CL vs. EL rewards go; let them trigger distributions gaslessly within policy limits. (coinbase.com)
• Engineering
  • Adopt Plan‑ID style abstractions so business splits change without new contracts. Provide a “dry‑run” endpoint to compute next distribution amounts before sending tx. (docs.cdp.coinbase.com)
• Finance/ops
  • Reconcile monthly using Net Rewards (settled) and disclose pending Gross amounts; attach tx hashes to downloadable statements. (docs.figment.io)
• Treasury
  • Set chain‑specific sweep thresholds; settle to your base chain with CCTP v2 weekly, then convert to fiat if needed. (circle.com)
• Risk
  • For restaking: version your AVS reward policies, track operator sets, and publish a customer‑readable note explaining how redistribution/slashing is handled. (forum.eigenlayer.xyz)

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7Block Labs’ implementation blueprint

• Discovery (1–2 weeks)
  • Map your current validator inventory and fee recipient configuration; identify which staking API(s) you’ll use (Coinbase, Figment, Kiln) and whether restaking is in scope. (coinbase.com)
• Design (2 weeks)
  • Choose Pattern A or B for EL/CL; define payout thresholds and paymaster policies; decide treasury chain and CCTP flow. (docs.cdp.coinbase.com)
• Build (3–6 weeks)
  • Wire Plan ID/Integration contract, deploy splitters, add Net/Gross reconciliation and statements, add gasless “distribute()” UX and observability. (docs.cdp.coinbase.com)
• Harden (ongoing)
  • Run integration tests around Pectra behaviors (partial exits, compounding), stress test paymaster caps, and simulate AVS reward/redistribution scenarios. (blog.ethereum.org)

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Final take

Onchain billing for staking moved from slideware to shipping product in 2025. If you adopt the patterns above—EL‑first splits, Plan‑ID configuration, paymaster‑guarded UX, and CCTP‑backed treasury rails—you’ll get simpler operations, cleaner finance, and an experience your users immediately understand. And with Pectra, ERC‑4337, and EigenLayer’s hardened incentives, the infrastructure underneath is finally ready for prime time. (docs.cdp.coinbase.com)

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References and further reading

• Coinbase Staking API: Enhanced Onchain Billing announcement; Dedicated ETH docs (Plan ID + split contract). (coinbase.com)
• Figment On‑Chain Billing docs (zero‑balance splitters, Net vs. Gross APIs). (docs.figment.io)
• Kiln integration and fee‑splitter factory; native staking with Pectra features. (docs.kiln.fi)
• EL vs. CL rewards and fee recipient mechanics (ethereum.org, stakefish). (ethereum.org)
• ERC‑4337 Paymasters (Coinbase Paymaster billing; Alchemy Gas Manager). (docs.cdp.coinbase.com)
• Circle CCTP v2 (press release; canonical v2). (circle.com)
• Ethereum Pectra (EF blog; EIP‑7002). (blog.ethereum.org)
• EigenLayer slashing, redistribution, rewards v2, multi‑chain verification. (coindesk.com)
• SEC statement on protocol staking activities (May 29, 2025). (sec.gov)

7Block Labs helps product leaders ship the above—with platform‑agnostic architecture, battle‑tested contracts, and the operational glue to keep finance, legal, and engineering aligned. If you want the full implementation spec or a teardown of your current flow, get in touch.