# Credits

Credits are the usage unit inside Sealed. They allow users to send messages, create or edit nicknames, use Alias Chat packages, and interact with Sealed features that require a transaction on the network. For a regular user, credits should feel similar to an app balance: the user receives credits once, and Sealed uses them in the background when an action needs to be processed. The purpose of credits is to make Sealed easier to use without forcing every messaging wallet to manually hold and manage ALGO. Instead of asking users to think about blockchain fees each time they send a message, Sealed turns usage into a simpler credit-based experience.

### Receiving credits

Credits are obtained through the Sealed website. The website provides a simple interface where the user deposits ALGO into the credit smart contract. For every 10 ALGO deposit unit, the user receives a code that represents 500 credits. In practice, 500 credits equal 500 messages. The user can create one code or multiple codes at once by depositing a multiple of 10 ALGO. For example, a larger deposit can generate several separate codes, with each code representing the same fixed credit amount. This fixed-size model is important because it helps all credit codes look the same from the system’s perspective.

### Credit code

A credit code is the bridge between the deposit and later usage inside the app. After the deposit is made, the user receives a code that can be activated in Sealed to unlock 500 credits. This code works similarly to a private voucher. It proves that a valid deposit was made, but it does not need to reveal which wallet made the original deposit when the credits are later activated in the app. The goal is to separate the wallet that deposits ALGO from the wallet that uses credits for messaging.

### Activating credits in the app

Once the user has a credit code, they can enter or import it into the Sealed app. After activation, 500 credits become available for the user’s local Sealed identity and can be used for supported actions inside the application. From the user’s perspective, this should be simple: create a code on the website, activate it in the app, and start using Sealed. The app handles the technical details in the background, including credit activation, message sending, and transaction costs.

### Sponsored transaction costs

One of the main benefits of credits is that they can include the cost of blockchain transactions. This means that the user’s messaging wallet does not need to hold ALGO directly in order to send messages or use basic network features. For the user, this removes a major source of friction. They do not need to manually calculate fees, keep small amounts of ALGO in every wallet, or understand how transaction costs work. Credits make the experience closer to using a normal app balance, while the system handles transaction costs in the background.

### Alias Chat credit packages

Alias Chat uses a separate credit flow. From the main Sealed wallet, the user can convert regular credits into Alias Chat credits. These credits are divided into packages of 50 messages. Each package works as a separate code stored locally on the device. When an Alias Chat starts, the app creates a temporary local wallet and funds it with one of these packages. When the package runs out, the temporary wallet can be removed and replaced with a new one funded by another Alias Chat code.

### Credits architecture summary

Credits are the internal usage balance of Sealed. Users create credit codes through the website by depositing ALGO into the credit smart contract. Each 10 ALGO code represents 500 credits, equal to 500 messages. The code can then be activated inside the app and used for messages, network actions, nickname creation or editing, and Alias Chat packages. This design makes Sealed easier for regular users because they do not need to manage blockchain fees manually. It also supports the privacy model by separating the deposit address from the wallet that later activates and uses credits.


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