diff --git a/Cargo.lock b/Cargo.lock
index 9e6788b4..58f8ef64 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -2666,6 +2666,14 @@ version = "2.3.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "37909eebbb50d72f9059c3b6d82c0463f2ff062c9e95845c43a6c9c0355411be"
 
+[[package]]
+name = "faucet_core"
+version = "0.1.0"
+dependencies = [
+ "nssa_core",
+ "serde",
+]
+
 [[package]]
 name = "ferroid"
 version = "2.0.0"
@@ -3938,6 +3946,7 @@ dependencies = [
  "bytesize",
  "common",
  "env_logger",
+ "faucet_core",
  "futures",
  "hex",
  "indexer_ffi",
@@ -6322,6 +6331,7 @@ dependencies = [
  "borsh",
  "clock_core",
  "env_logger",
+ "faucet_core",
  "hex",
  "hex-literal 1.1.0",
  "k256",
@@ -7057,6 +7067,7 @@ dependencies = [
  "ata_program",
  "authenticated_transfer_core",
  "clock_core",
+ "faucet_core",
  "nssa_core",
  "risc0-zkvm",
  "serde",
@@ -8421,6 +8432,7 @@ dependencies = [
  "bytesize",
  "chrono",
  "common",
+ "faucet_core",
  "futures",
  "humantime-serde",
  "log",
diff --git a/Cargo.toml b/Cargo.toml
index 974f73ce..724f53e0 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -21,6 +21,7 @@ members = [
   "programs/associated_token_account/core",
   "programs/associated_token_account",
   "programs/authenticated_transfer/core",
+  "programs/faucet/core",
   "programs/vault/core",
   "sequencer/core",
   "sequencer/service",
@@ -68,6 +69,7 @@ amm_program = { path = "programs/amm" }
 ata_core = { path = "programs/associated_token_account/core" }
 ata_program = { path = "programs/associated_token_account" }
 authenticated_transfer_core = { path = "programs/authenticated_transfer/core" }
+faucet_core = { path = "programs/faucet/core" }
 vault_core = { path = "programs/vault/core" }
 test_program_methods = { path = "test_program_methods" }
 testnet_initial_state = { path = "testnet_initial_state" }
diff --git a/artifacts/program_methods/amm.bin b/artifacts/program_methods/amm.bin
index 06d149eb..5d45f561 100644
Binary files a/artifacts/program_methods/amm.bin and b/artifacts/program_methods/amm.bin differ
diff --git a/artifacts/program_methods/associated_token_account.bin b/artifacts/program_methods/associated_token_account.bin
index 1598a7fd..6e9350e8 100644
Binary files a/artifacts/program_methods/associated_token_account.bin and b/artifacts/program_methods/associated_token_account.bin differ
diff --git a/artifacts/program_methods/authenticated_transfer.bin b/artifacts/program_methods/authenticated_transfer.bin
index 3191ac44..107c53d6 100644
Binary files a/artifacts/program_methods/authenticated_transfer.bin and b/artifacts/program_methods/authenticated_transfer.bin differ
diff --git a/artifacts/program_methods/clock.bin b/artifacts/program_methods/clock.bin
index b477d939..f225da54 100644
Binary files a/artifacts/program_methods/clock.bin and b/artifacts/program_methods/clock.bin differ
diff --git a/artifacts/program_methods/faucet.bin b/artifacts/program_methods/faucet.bin
new file mode 100644
index 00000000..b4043034
Binary files /dev/null and b/artifacts/program_methods/faucet.bin differ
diff --git a/artifacts/program_methods/pinata.bin b/artifacts/program_methods/pinata.bin
index 87943ad0..797a3a31 100644
Binary files a/artifacts/program_methods/pinata.bin and b/artifacts/program_methods/pinata.bin differ
diff --git a/artifacts/program_methods/pinata_token.bin b/artifacts/program_methods/pinata_token.bin
index b44b4395..87c7007f 100644
Binary files a/artifacts/program_methods/pinata_token.bin and b/artifacts/program_methods/pinata_token.bin differ
diff --git a/artifacts/program_methods/privacy_preserving_circuit.bin b/artifacts/program_methods/privacy_preserving_circuit.bin
index 580489f7..6b3ec34c 100644
Binary files a/artifacts/program_methods/privacy_preserving_circuit.bin and b/artifacts/program_methods/privacy_preserving_circuit.bin differ
diff --git a/artifacts/program_methods/token.bin b/artifacts/program_methods/token.bin
index f9682d3a..7ddb9d77 100644
Binary files a/artifacts/program_methods/token.bin and b/artifacts/program_methods/token.bin differ
diff --git a/artifacts/program_methods/vault.bin b/artifacts/program_methods/vault.bin
index 3f50fa9f..08b858f8 100644
Binary files a/artifacts/program_methods/vault.bin and b/artifacts/program_methods/vault.bin differ
diff --git a/common/src/transaction.rs b/common/src/transaction.rs
index f5ea6488..6175f1a1 100644
--- a/common/src/transaction.rs
+++ b/common/src/transaction.rs
@@ -68,7 +68,8 @@ impl NSSATransaction {
 
     /// Validates the transaction against the current state and returns the resulting diff
     /// without applying it. Rejects transactions that modify clock system accounts and
-    /// rejects unsafe modifications of the system faucet account.
+    /// rejects unsafe modifications of the system faucet account. Also rejects direct
+    /// invocation of the faucet program for user-submitted transactions.
     ///
     /// This check is required for all user transactions. Only sequencer transaction may bypass this
     /// check.
@@ -78,6 +79,14 @@ impl NSSATransaction {
         block_id: BlockId,
         timestamp: Timestamp,
     ) -> Result<ValidatedStateDiff, nssa::error::NssaError> {
+        if let Self::Public(tx) = self
+            && tx.message().program_id == nssa::program::Program::faucet().id()
+        {
+            return Err(nssa::error::NssaError::InvalidInput(
+                "Transaction invokes restricted faucet program".into(),
+            ));
+        }
+
         let diff = match self {
             Self::Public(tx) => {
                 ValidatedStateDiff::from_public_transaction(tx, state, block_id, timestamp)
@@ -102,36 +111,6 @@ impl NSSATransaction {
             ));
         }
 
-        let faucet_account_id = nssa::SYSTEM_FAUCET_ACCOUNT_ID;
-        if let Some(post_faucet) = public_diff.get(&faucet_account_id) {
-            let pre_faucet = state.get_account_by_id(faucet_account_id);
-
-            let nssa::Account {
-                program_owner: post_program_owner,
-                data: post_data,
-                nonce: post_nonce,
-                balance: post_balance,
-            } = post_faucet;
-
-            let nssa::Account {
-                program_owner: pre_program_owner,
-                data: pre_data,
-                nonce: pre_nonce,
-                balance: pre_balance,
-            } = pre_faucet;
-
-            let faucet_change_is_allowed = *post_program_owner == pre_program_owner
-                && *post_data == pre_data
-                && *post_nonce == pre_nonce
-                && *post_balance >= pre_balance;
-
-            if !faucet_change_is_allowed {
-                return Err(nssa::error::NssaError::InvalidInput(
-                    "Transaction modifies system faucet account".into(),
-                ));
-            }
-        }
-
         Ok(diff)
     }
 
diff --git a/integration_tests/Cargo.toml b/integration_tests/Cargo.toml
index 288137ea..536f30bc 100644
--- a/integration_tests/Cargo.toml
+++ b/integration_tests/Cargo.toml
@@ -21,6 +21,7 @@ serde_json.workspace = true
 token_core.workspace = true
 ata_core.workspace = true
 vault_core.workspace = true
+faucet_core.workspace = true
 indexer_service_rpc = { workspace = true, features = ["client"] }
 sequencer_service_rpc = { workspace = true, features = ["client"] }
 jsonrpsee = { workspace = true, features = ["ws-client"] }
diff --git a/integration_tests/tests/auth_transfer/public.rs b/integration_tests/tests/auth_transfer/public.rs
index 80c9d575..54713f67 100644
--- a/integration_tests/tests/auth_transfer/public.rs
+++ b/integration_tests/tests/auth_transfer/public.rs
@@ -4,7 +4,7 @@ use anyhow::Result;
 use common::transaction::NSSATransaction;
 use integration_tests::{TIME_TO_WAIT_FOR_BLOCK_SECONDS, TestContext, public_mention};
 use log::info;
-use nssa::{SYSTEM_FAUCET_ACCOUNT_ID, program::Program, public_transaction};
+use nssa::{program::Program, public_transaction, system_faucet_account_id};
 use sequencer_service_rpc::RpcClient as _;
 use tokio::test;
 use wallet::{
@@ -349,6 +349,7 @@ async fn successful_transfer_using_to_label() -> Result<()> {
 #[test]
 async fn cannot_transfer_funds_from_system_faucet_account() -> Result<()> {
     let ctx = TestContext::new().await?;
+    let faucet_account_id = system_faucet_account_id();
 
     let recipient = ctx.existing_public_accounts()[0];
     let recipient_balance_before = ctx
@@ -357,13 +358,13 @@ async fn cannot_transfer_funds_from_system_faucet_account() -> Result<()> {
         .await?;
     let faucet_balance_before = ctx
         .sequencer_client()
-        .get_account_balance(SYSTEM_FAUCET_ACCOUNT_ID)
+        .get_account_balance(faucet_account_id)
         .await?;
 
     let amount = 1_u128;
     let message = public_transaction::Message::try_new(
         Program::authenticated_transfer_program().id(),
-        vec![SYSTEM_FAUCET_ACCOUNT_ID, recipient],
+        vec![faucet_account_id, recipient],
         vec![],
         authenticated_transfer_core::Instruction::Transfer { amount },
     )?;
@@ -385,7 +386,7 @@ async fn cannot_transfer_funds_from_system_faucet_account() -> Result<()> {
         .await?;
     let faucet_balance_after = ctx
         .sequencer_client()
-        .get_account_balance(SYSTEM_FAUCET_ACCOUNT_ID)
+        .get_account_balance(faucet_account_id)
         .await?;
     let tx_on_chain = ctx.sequencer_client().get_transaction(tx_hash).await?;
 
@@ -399,18 +400,19 @@ async fn cannot_transfer_funds_from_system_faucet_account() -> Result<()> {
 #[test]
 async fn can_transfer_funds_to_system_faucet_account() -> Result<()> {
     let mut ctx = TestContext::new().await?;
+    let faucet_account_id = system_faucet_account_id();
 
     let sender = ctx.existing_public_accounts()[0];
     let sender_balance_before = ctx.sequencer_client().get_account_balance(sender).await?;
     let faucet_balance_before = ctx
         .sequencer_client()
-        .get_account_balance(SYSTEM_FAUCET_ACCOUNT_ID)
+        .get_account_balance(faucet_account_id)
         .await?;
 
     let amount = 100_u128;
     let command = Command::AuthTransfer(AuthTransferSubcommand::Send {
         from: public_mention(sender),
-        to: Some(public_mention(SYSTEM_FAUCET_ACCOUNT_ID)),
+        to: Some(public_mention(faucet_account_id)),
         to_npk: None,
         to_vpk: None,
         to_identifier: Some(0),
@@ -424,7 +426,7 @@ async fn can_transfer_funds_to_system_faucet_account() -> Result<()> {
     let sender_balance_after = ctx.sequencer_client().get_account_balance(sender).await?;
     let faucet_balance_after = ctx
         .sequencer_client()
-        .get_account_balance(SYSTEM_FAUCET_ACCOUNT_ID)
+        .get_account_balance(faucet_account_id)
         .await?;
 
     assert_eq!(sender_balance_after, sender_balance_before - amount);
@@ -432,3 +434,61 @@ async fn can_transfer_funds_to_system_faucet_account() -> Result<()> {
 
     Ok(())
 }
+
+#[test]
+async fn cannot_execute_faucet_program() -> Result<()> {
+    let ctx = TestContext::new().await?;
+    let faucet_account_id = system_faucet_account_id();
+
+    let recipient = ctx.existing_public_accounts()[0];
+    let vault_program_id = Program::vault().id();
+    let recipient_vault_id = vault_core::compute_vault_account_id(vault_program_id, recipient);
+
+    let recipient_balance_before = ctx
+        .sequencer_client()
+        .get_account_balance(recipient)
+        .await?;
+    let faucet_balance_before = ctx
+        .sequencer_client()
+        .get_account_balance(faucet_account_id)
+        .await?;
+
+    let amount = 1_u128;
+    let message = public_transaction::Message::try_new(
+        Program::faucet().id(),
+        vec![faucet_account_id, recipient_vault_id],
+        vec![],
+        faucet_core::Instruction::Transfer {
+            vault_program_id,
+            recipient_id: recipient,
+            amount,
+        },
+    )?;
+    let tx = nssa::PublicTransaction::new(
+        message,
+        nssa::public_transaction::WitnessSet::from_raw_parts(vec![]),
+    );
+    let tx_hash = ctx
+        .sequencer_client()
+        .send_transaction(NSSATransaction::Public(tx))
+        .await?;
+
+    info!("Waiting for next block creation");
+    tokio::time::sleep(Duration::from_secs(TIME_TO_WAIT_FOR_BLOCK_SECONDS)).await;
+
+    let recipient_balance_after = ctx
+        .sequencer_client()
+        .get_account_balance(recipient)
+        .await?;
+    let faucet_balance_after = ctx
+        .sequencer_client()
+        .get_account_balance(faucet_account_id)
+        .await?;
+    let tx_on_chain = ctx.sequencer_client().get_transaction(tx_hash).await?;
+
+    assert_eq!(recipient_balance_after, recipient_balance_before);
+    assert_eq!(faucet_balance_after, faucet_balance_before);
+    assert!(tx_on_chain.is_none());
+
+    Ok(())
+}
diff --git a/nssa/Cargo.toml b/nssa/Cargo.toml
index d2141999..20889e11 100644
--- a/nssa/Cargo.toml
+++ b/nssa/Cargo.toml
@@ -10,6 +10,7 @@ workspace = true
 [dependencies]
 nssa_core = { workspace = true, features = ["host"] }
 clock_core.workspace = true
+faucet_core.workspace = true
 
 anyhow.workspace = true
 thiserror.workspace = true
diff --git a/nssa/src/lib.rs b/nssa/src/lib.rs
index f8b9cd0f..5998e803 100644
--- a/nssa/src/lib.rs
+++ b/nssa/src/lib.rs
@@ -4,7 +4,7 @@
 )]
 
 pub use nssa_core::{
-    GENESIS_BLOCK_ID, SYSTEM_FAUCET_ACCOUNT_ID, SharedSecretKey,
+    GENESIS_BLOCK_ID, SharedSecretKey,
     account::{Account, AccountId, Data},
     encryption::EphemeralPublicKey,
     program::ProgramId,
@@ -18,7 +18,7 @@ pub use public_transaction::PublicTransaction;
 pub use signature::{PrivateKey, PublicKey, Signature};
 pub use state::{
     CLOCK_01_PROGRAM_ACCOUNT_ID, CLOCK_10_PROGRAM_ACCOUNT_ID, CLOCK_50_PROGRAM_ACCOUNT_ID,
-    CLOCK_PROGRAM_ACCOUNT_IDS, V03State,
+    CLOCK_PROGRAM_ACCOUNT_IDS, V03State, system_faucet_account_id,
 };
 pub use validated_state_diff::ValidatedStateDiff;
 
diff --git a/nssa/src/program.rs b/nssa/src/program.rs
index 07a85469..1aff3bc9 100644
--- a/nssa/src/program.rs
+++ b/nssa/src/program.rs
@@ -10,8 +10,8 @@ use crate::{
     error::NssaError,
     program_methods::{
         AMM_ELF, AMM_ID, ASSOCIATED_TOKEN_ACCOUNT_ELF, ASSOCIATED_TOKEN_ACCOUNT_ID,
-        AUTHENTICATED_TRANSFER_ELF, AUTHENTICATED_TRANSFER_ID, CLOCK_ELF, CLOCK_ID, PINATA_ELF,
-        PINATA_ID, TOKEN_ELF, TOKEN_ID, VAULT_ELF, VAULT_ID,
+        AUTHENTICATED_TRANSFER_ELF, AUTHENTICATED_TRANSFER_ID, CLOCK_ELF, CLOCK_ID, FAUCET_ELF,
+        FAUCET_ID, PINATA_ELF, PINATA_ID, TOKEN_ELF, TOKEN_ID, VAULT_ELF, VAULT_ID,
     },
 };
 
@@ -156,6 +156,14 @@ impl Program {
             elf: VAULT_ELF.to_vec(),
         }
     }
+
+    #[must_use]
+    pub fn faucet() -> Self {
+        Self {
+            id: FAUCET_ID,
+            elf: FAUCET_ELF.to_vec(),
+        }
+    }
 }
 
 // TODO: Testnet only. Refactor to prevent compilation on mainnet.
@@ -186,8 +194,9 @@ mod tests {
         program::Program,
         program_methods::{
             AMM_ELF, AMM_ID, ASSOCIATED_TOKEN_ACCOUNT_ELF, ASSOCIATED_TOKEN_ACCOUNT_ID,
-            AUTHENTICATED_TRANSFER_ELF, AUTHENTICATED_TRANSFER_ID, CLOCK_ELF, CLOCK_ID, PINATA_ELF,
-            PINATA_ID, PINATA_TOKEN_ELF, PINATA_TOKEN_ID, TOKEN_ELF, TOKEN_ID, VAULT_ELF, VAULT_ID,
+            AUTHENTICATED_TRANSFER_ELF, AUTHENTICATED_TRANSFER_ID, CLOCK_ELF, CLOCK_ID, FAUCET_ELF,
+            FAUCET_ID, PINATA_ELF, PINATA_ID, PINATA_TOKEN_ELF, PINATA_TOKEN_ID, TOKEN_ELF,
+            TOKEN_ID, VAULT_ELF, VAULT_ID,
         },
     };
 
@@ -501,6 +510,7 @@ mod tests {
         let auth_transfer_program = Program::authenticated_transfer_program();
         let token_program = Program::token();
         let vault_program = Program::vault();
+        let faucet_program = Program::faucet();
         let pinata_program = Program::pinata();
 
         assert_eq!(auth_transfer_program.id, AUTHENTICATED_TRANSFER_ID);
@@ -509,6 +519,8 @@ mod tests {
         assert_eq!(token_program.elf, TOKEN_ELF);
         assert_eq!(vault_program.id, VAULT_ID);
         assert_eq!(vault_program.elf, VAULT_ELF);
+        assert_eq!(faucet_program.id, FAUCET_ID);
+        assert_eq!(faucet_program.elf, FAUCET_ELF);
         assert_eq!(pinata_program.id, PINATA_ID);
         assert_eq!(pinata_program.elf, PINATA_ELF);
     }
@@ -520,6 +532,7 @@ mod tests {
             (AUTHENTICATED_TRANSFER_ELF, AUTHENTICATED_TRANSFER_ID),
             (ASSOCIATED_TOKEN_ACCOUNT_ELF, ASSOCIATED_TOKEN_ACCOUNT_ID),
             (CLOCK_ELF, CLOCK_ID),
+            (FAUCET_ELF, FAUCET_ID),
             (PINATA_ELF, PINATA_ID),
             (PINATA_TOKEN_ELF, PINATA_TOKEN_ID),
             (TOKEN_ELF, TOKEN_ID),
diff --git a/nssa/src/state.rs b/nssa/src/state.rs
index a2c7cbea..e9f2058f 100644
--- a/nssa/src/state.rs
+++ b/nssa/src/state.rs
@@ -8,7 +8,7 @@ pub use clock_core::{
 };
 use nssa_core::{
     BlockId, Commitment, CommitmentSetDigest, DUMMY_COMMITMENT, MembershipProof, Nullifier,
-    SYSTEM_FAUCET_ACCOUNT_ID, Timestamp,
+    Timestamp,
     account::{Account, AccountId, Nonce},
     program::ProgramId,
 };
@@ -124,9 +124,10 @@ pub struct V03State {
 
 impl Default for V03State {
     fn default() -> Self {
+        let faucet_account_id = system_faucet_account_id();
         let faucet_account = system_faucet_account();
         let mut public_state = HashMap::new();
-        public_state.insert(SYSTEM_FAUCET_ACCOUNT_ID, faucet_account);
+        public_state.insert(faucet_account_id, faucet_account);
 
         Self {
             public_state,
@@ -148,6 +149,7 @@ impl V03State {
         initial_private_accounts: Vec<(Commitment, Nullifier)>,
         genesis_timestamp: nssa_core::Timestamp,
     ) -> Self {
+        let faucet_account_id = system_faucet_account_id();
         let authenticated_transfer_program = Program::authenticated_transfer_program();
         let mut public_state: HashMap<_, _> = initial_data
             .iter()
@@ -162,7 +164,7 @@ impl V03State {
             })
             .collect();
         let faucet_account = system_faucet_account();
-        public_state.insert(SYSTEM_FAUCET_ACCOUNT_ID, faucet_account);
+        public_state.insert(faucet_account_id, faucet_account);
 
         let mut commitment_set = CommitmentSet::with_capacity(32);
         commitment_set.extend(&[DUMMY_COMMITMENT]);
@@ -187,6 +189,7 @@ impl V03State {
         this.insert_program(Program::amm());
         this.insert_program(Program::ata());
         this.insert_program(Program::vault());
+        this.insert_program(Program::faucet());
 
         this
     }
@@ -381,6 +384,11 @@ fn system_faucet_account() -> Account {
     }
 }
 
+#[must_use]
+pub fn system_faucet_account_id() -> AccountId {
+    faucet_core::compute_faucet_account_id(Program::faucet().id())
+}
+
 #[cfg(test)]
 pub mod tests {
     #![expect(
@@ -404,7 +412,7 @@ pub mod tests {
     };
 
     use crate::{
-        PublicKey, PublicTransaction, SYSTEM_FAUCET_ACCOUNT_ID, V03State,
+        PublicKey, PublicTransaction, V03State,
         error::{InvalidProgramBehaviorError, NssaError},
         execute_and_prove,
         privacy_preserving_transaction::{
@@ -420,6 +428,7 @@ pub mod tests {
             CLOCK_01_PROGRAM_ACCOUNT_ID, CLOCK_10_PROGRAM_ACCOUNT_ID, CLOCK_50_PROGRAM_ACCOUNT_ID,
             CLOCK_PROGRAM_ACCOUNT_IDS, MAX_NUMBER_CHAINED_CALLS, system_faucet_account,
         },
+        system_faucet_account_id,
     };
 
     impl V03State {
@@ -612,7 +621,7 @@ pub mod tests {
                     ..Account::default()
                 },
             );
-            this.insert(SYSTEM_FAUCET_ACCOUNT_ID, system_faucet_account());
+            this.insert(system_faucet_account_id(), system_faucet_account());
             for account_id in CLOCK_PROGRAM_ACCOUNT_IDS {
                 this.insert(
                     account_id,
@@ -636,6 +645,7 @@ pub mod tests {
             this.insert(Program::amm().id(), Program::amm());
             this.insert(Program::ata().id(), Program::ata());
             this.insert(Program::vault().id(), Program::vault());
+            this.insert(Program::faucet().id(), Program::faucet());
             this
         };
 
diff --git a/program_methods/guest/Cargo.toml b/program_methods/guest/Cargo.toml
index 98938d1f..136fb0b8 100644
--- a/program_methods/guest/Cargo.toml
+++ b/program_methods/guest/Cargo.toml
@@ -17,6 +17,7 @@ amm_core.workspace = true
 amm_program.workspace = true
 ata_core.workspace = true
 ata_program.workspace = true
+faucet_core.workspace = true
 vault_core.workspace = true
 risc0-zkvm.workspace = true
 serde = { workspace = true, default-features = false }
diff --git a/program_methods/guest/src/bin/authenticated_transfer.rs b/program_methods/guest/src/bin/authenticated_transfer.rs
index bdb91ac5..0c8040d9 100644
--- a/program_methods/guest/src/bin/authenticated_transfer.rs
+++ b/program_methods/guest/src/bin/authenticated_transfer.rs
@@ -1,6 +1,5 @@
 use authenticated_transfer_core::Instruction;
 use nssa_core::{
-    SYSTEM_FAUCET_ACCOUNT_ID,
     account::{Account, AccountWithMetadata},
     program::{
         AccountPostState, Claim, DEFAULT_PROGRAM_ID, ProgramInput, ProgramOutput, read_nssa_inputs,
@@ -26,13 +25,8 @@ fn transfer(
     recipient: AccountWithMetadata,
     balance_to_move: u128,
 ) -> Vec<AccountPostState> {
-    // Continue only if the sender has authorized this operation
-    // or it's the system faucet account which is allowed without authorization as it may be used
-    // only by sequencer.
-    assert!(
-        sender.is_authorized || sender.account_id == SYSTEM_FAUCET_ACCOUNT_ID,
-        "Sender must be authorized"
-    );
+    // Continue only if the sender has authorized this operation.
+    assert!(sender.is_authorized, "Sender must be authorized");
 
     // Create accounts post states, with updated balances
     let sender_post = {
diff --git a/program_methods/guest/src/bin/faucet.rs b/program_methods/guest/src/bin/faucet.rs
new file mode 100644
index 00000000..e56330cd
--- /dev/null
+++ b/program_methods/guest/src/bin/faucet.rs
@@ -0,0 +1,71 @@
+use faucet_core::Instruction;
+use nssa_core::program::{
+    AccountPostState, ChainedCall, ProgramInput, ProgramOutput, read_nssa_inputs,
+};
+
+fn unchanged_post_states(
+    pre_states: &[nssa_core::account::AccountWithMetadata],
+) -> Vec<AccountPostState> {
+    pre_states
+        .iter()
+        .map(|pre_state| AccountPostState::new(pre_state.account.clone()))
+        .collect()
+}
+
+fn main() {
+    let (
+        ProgramInput {
+            self_program_id,
+            caller_program_id,
+            pre_states,
+            instruction,
+        },
+        instruction_words,
+    ) = read_nssa_inputs::<Instruction>();
+
+    let pre_states_clone = pre_states.clone();
+    let post_states = unchanged_post_states(&pre_states_clone);
+
+    let chained_calls = match instruction {
+        Instruction::Transfer {
+            vault_program_id,
+            recipient_id,
+            amount,
+        } => {
+            let [faucet, recipient_vault] = pre_states
+                .try_into()
+                .expect("Transfer requires exactly 2 accounts");
+
+            assert_eq!(
+                faucet.account_id,
+                faucet_core::compute_faucet_account_id(self_program_id),
+                "First account must be faucet PDA"
+            );
+
+            let mut faucet_for_vault = faucet;
+            faucet_for_vault.is_authorized = true;
+
+            vec![
+                ChainedCall::new(
+                    vault_program_id,
+                    vec![faucet_for_vault, recipient_vault],
+                    &vault_core::Instruction::Transfer {
+                        recipient_id,
+                        amount,
+                    },
+                )
+                .with_pda_seeds(vec![faucet_core::compute_faucet_seed()]),
+            ]
+        }
+    };
+
+    ProgramOutput::new(
+        self_program_id,
+        caller_program_id,
+        instruction_words,
+        pre_states_clone,
+        post_states,
+    )
+    .with_chained_calls(chained_calls)
+    .write();
+}
diff --git a/programs/faucet/core/Cargo.toml b/programs/faucet/core/Cargo.toml
new file mode 100644
index 00000000..aa8826ea
--- /dev/null
+++ b/programs/faucet/core/Cargo.toml
@@ -0,0 +1,12 @@
+[package]
+name = "faucet_core"
+version = "0.1.0"
+edition = "2024"
+license = { workspace = true }
+
+[lints]
+workspace = true
+
+[dependencies]
+nssa_core.workspace = true
+serde = { workspace = true, default-features = false }
diff --git a/programs/faucet/core/src/lib.rs b/programs/faucet/core/src/lib.rs
new file mode 100644
index 00000000..da9861e6
--- /dev/null
+++ b/programs/faucet/core/src/lib.rs
@@ -0,0 +1,29 @@
+pub use nssa_core::program::PdaSeed;
+use nssa_core::{account::AccountId, program::ProgramId};
+use serde::{Deserialize, Serialize};
+
+const FAUCET_SEED_DOMAIN_SEPARATOR: [u8; 32] = *b"/LEZ/v0.3/FaucetSeed/0000000000/";
+
+#[derive(Serialize, Deserialize)]
+pub enum Instruction {
+    /// Transfers native tokens from system faucet to recipient's vault.
+    ///
+    /// Required accounts (2):
+    /// - Faucet PDA account
+    /// - Recipient vault PDA account
+    Transfer {
+        vault_program_id: ProgramId,
+        recipient_id: AccountId,
+        amount: u128,
+    },
+}
+
+#[must_use]
+pub const fn compute_faucet_seed() -> PdaSeed {
+    PdaSeed::new(FAUCET_SEED_DOMAIN_SEPARATOR)
+}
+
+#[must_use]
+pub fn compute_faucet_account_id(faucet_program_id: ProgramId) -> AccountId {
+    AccountId::for_public_pda(&faucet_program_id, &compute_faucet_seed())
+}
diff --git a/sequencer/core/Cargo.toml b/sequencer/core/Cargo.toml
index 9729d209..cab54e56 100644
--- a/sequencer/core/Cargo.toml
+++ b/sequencer/core/Cargo.toml
@@ -15,6 +15,7 @@ storage.workspace = true
 mempool.workspace = true
 logos-blockchain-zone-sdk.workspace = true
 testnet_initial_state.workspace = true
+faucet_core.workspace = true
 vault_core.workspace = true
 
 thiserror.workspace = true
diff --git a/sequencer/core/src/lib.rs b/sequencer/core/src/lib.rs
index c103adfc..53894935 100644
--- a/sequencer/core/src/lib.rs
+++ b/sequencer/core/src/lib.rs
@@ -383,14 +383,16 @@ fn build_supply_account_genesis_transaction(
     account_id: &AccountId,
     balance: u128,
 ) -> PublicTransaction {
+    let faucet_program_id = Program::faucet().id();
     let vault_program_id = Program::vault().id();
     let recipient_vault_id = vault_core::compute_vault_account_id(vault_program_id, *account_id);
 
     let message = Message::try_new(
-        vault_program_id,
-        vec![nssa::SYSTEM_FAUCET_ACCOUNT_ID, recipient_vault_id],
+        faucet_program_id,
+        vec![nssa::system_faucet_account_id(), recipient_vault_id],
         vec![],
-        vault_core::Instruction::Transfer {
+        faucet_core::Instruction::Transfer {
+            vault_program_id,
             recipient_id: *account_id,
             amount: balance,
         },