diff --git a/packages/distributor-oracle/src/client.ts b/packages/distributor-oracle/src/client.ts
index 5245d8bb0..5a13fa640 100644
--- a/packages/distributor-oracle/src/client.ts
+++ b/packages/distributor-oracle/src/client.ts
@@ -277,18 +277,22 @@ export async function formBulkTransactions({
     assetEndpoint || provider.connection.rpcEndpoint,
     assets
   );
+  const willPay = (await axios.get(
+    `${lazyDistributorAcc.oracles[0].url}/will-pay-recipient`
+  )).data.willPay;
   let ixsPerAsset = await Promise.all(
     recipientAccs.map(async (recipientAcc, idx) => {
       if (!recipientAcc) {
         return [
-          await (
+          await(
             await initializeCompressionRecipient({
               program: lazyDistributorProgram,
               assetId: assets![idx],
               lazyDistributor,
               assetEndpoint,
               owner: wallet,
-              payer,
+              // Temporarily set oracle as the payer to subsidize new HNT wallets.
+              payer: willPay ? lazyDistributorAcc.oracles[0].oracle : payer,
               getAssetFn: () => Promise.resolve(compressionAssetAccs![idx]), // cache result so we don't hit again
               getAssetProofFn: assetProofsById
                 ? () =>
@@ -522,6 +526,9 @@ export async function formTransaction({
   const recipientAcc =
     await lazyDistributorProgram.account.recipientV0.fetchNullable(recipient);
   if (!recipientAcc) {
+    const willPay = (
+      await axios.get(`${lazyDistributorAcc.oracles[0].url}/will-pay-recipient`)
+    ).data.willPay;
     let initRecipientIx;
     if (assetAcc.compression.compressed) {
       initRecipientIx = await (
@@ -531,7 +538,7 @@ export async function formTransaction({
           lazyDistributor,
           assetEndpoint,
           owner: wallet,
-          payer,
+          payer: willPay ? lazyDistributorAcc.oracles[0].oracle : payer,
           getAssetFn: () => Promise.resolve(assetAcc), // cache result so we don't hit again
           getAssetProofFn,
         })
diff --git a/packages/distributor-oracle/src/server.ts b/packages/distributor-oracle/src/server.ts
index 00afc1285..aba1ce9a1 100644
--- a/packages/distributor-oracle/src/server.ts
+++ b/packages/distributor-oracle/src/server.ts
@@ -233,6 +233,17 @@ export class OracleServer {
   private addRoutes() {
     this.app.get("/active-devices", this.getActiveDevicesHandler.bind(this));
     this.app.post("/bulk-rewards", this.getAllRewardsHandler.bind(this));
+    this.app.get(
+      "/will-pay-recipient",
+      (
+        _req: FastifyRequest<{ Body: { entityKeys: string[] } }>,
+        res: FastifyReply
+      ) => {
+        res.send({
+          willPay: process.env.WILL_PAY_RECIPIENT === "true",
+        });
+      }
+    );
     this.app.get<{
       Querystring: {
         assetId?: string;
@@ -361,6 +372,10 @@ export class OracleServer {
       initCompressionRecipientTx.accounts.findIndex(
         (x) => x.name === "lazyDistributor"
       )!;
+    const payerIdxInitCompressionRecipient =
+      initCompressionRecipientTx.accounts.findIndex(
+        (x) => x.name === "payer"
+      )!;
     const mintIdx = initRecipientTx.accounts.findIndex(
       (x) => x.name === "mint"
     )!;
@@ -443,6 +458,15 @@ export class OracleServer {
           allAccs[ix.accountKeyIndexes[lazyDistributorIdxInitCompressionRecipient]].toBase58();
         const merkleTree =
           allAccs[ix.accountKeyIndexes[merkleTreeIdxInitCompressionRecipient]];
+        const payer =
+          allAccs[ix.accountKeyIndexes[payerIdxInitCompressionRecipient]].toBase58();
+
+        if (process.env.WILL_PAY_RECIPIENT !== "true" && payer === this.oracle.publicKey.toBase58()) {
+          return {
+            success: false,
+            message: "Cannot set this oracle as the payer",
+          };
+        }
 
         const index = (decoded.data as any).args.index;
         recipientToLazyDistToMint[recipient][lazyDist] = await getLeafAssetId(