Coinbase has announced an update to the x402 protocol, replacing fixed fees with usage-based payments for AI agents' computing power.
Usage-based pricing is now live on x402!
— Coinbase Developer Platform🛡️ (@CoinbaseDev) April 9, 2026
The new "Upto" scheme lets agents pay only for what they consume, unlocking variable-cost services like LLM inference, compute, and data queries on x402.
Available now on the x402 SDK + CDP Facilitator. ↓
The new Upto mechanism will provide autonomous AI with access to services featuring flexible pricing, including LLM operations, computations, and database queries.
“Previously, x402 only supported fixed payments, which are suitable for deterministic APIs but restrict services where costs depend on the number of tokens, computation time, or query complexity,” the developers explained.
Upto operates in EVM networks and supports all ERC-20 standard tokens. The CDP Facilitator tool enables transactions without gas fees.
The integration of this new solution comes as the tech sector prepares for the era of autonomous commerce. AI agents are expected to drive network activity growth, necessitating seamless and nearly instantaneous micropayments.
Moving Away from Fixed Fees
The Upto scheme allows providers to set maximum rates while users can approve spending within a specified limit.
The system charges only for the actual computational costs incurred in completing a task. This protects against overpayments: if a request turns out to be simple, the final amount will be below the established maximum.
Previously, the costs for light and resource-intensive tasks were the same. Now, users can allocate a precise budget for the AI agent in advance, rather than guessing potential expenses.
The x402 protocol was initially created by Coinbase but transitioned to the management of the non-profit Linux Foundation in early April. The development of the project through the x402 Foundation also involves tech giants like Google, Microsoft, and Amazon Web Services.
Despite the interest in the project, analysts from Dune Analytics report a decline in on-chain activity in 2026.
Weekly transaction volume dynamics for x402. Source: Dune.
The peak occurred between November 4 and 10 last year, reaching a record of 13.7 million transactions. Subsequently, the numbers began to drop sharply: by early January 2026, the weekly transaction volume fell below 1 million and continued to decline throughout the first quarter. In the last week of March, only 112,708 transfers were processed through x402.
Recall that in December last year, the second version of the x402 protocol was released.