Grin-wallet contract prototype

No, the receiver doesn’t need to have any coins. His part of fees can be paid from the coins that he receives in that same transaction.

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Correct, an empty wallet cannot use an own input for the fee, so it will not be a payjoin and as such the direction of the transaction is more easy to guess.

As far as I understood, payjoin is not jet implemented in the contract branch even though you would expect it to be since fees are paid by both sender and receiver.

Sorry for the late reply. Payjoin is implemented and if I remember correctly, it was the default behaviour for contract flow. And @vegycslol is correct, the receiver does not need an input to pay for their part part of the fees because they can pay them from the output they receive.

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