Coinbase enhances its x402 protocol with a new usage-based payment system for AI computing services, facilitating flexible pricing and budgeting.
Coinbase has rolled out an update to its x402 protocol, introducing a usage-based payment model for AI computing power, moving away from fixed fees.
Usage-based pricing is now live on x402!
The "Upto" plan allows users to pay only for what they consume, providing flexible-cost services such as large language model (LLM) inference and data queries.
Available now on the x402 SDK + CDP Facilitator. ↓
— Coinbase Developer Platform🛡️ (@CoinbaseDev) April 9, 2026
This new Upto feature enhances accessibility for autonomous AI by enabling dynamic pricing for essential services like computations and database operations.
“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 functions across Ethereum Virtual Machine (EVM) networks and is compatible with all ERC-20 tokens. Additionally, the CDP Facilitator tool allows transactions without incurring gas fees.
This advancement comes as the tech industry braces for a shift towards autonomous commerce, where AI agents are anticipated to increase network activity, thus requiring efficient micropayment systems.
Transition from Fixed Costs
The Upto model enables service providers to establish maximum charges, while users can set spending limits that suit their needs.
Users are billed based solely on actual computational costs incurred, which helps prevent overpayment; if a task is simpler than expected, they will pay less than the maximum set.
In contrast to previous fixed pricing for both simple and complex tasks, this system allows users to predetermine budgets for their AI agents, eliminating guesswork regarding costs.
Initially developed by Coinbase, the x402 protocol is now managed by the non-profit Linux Foundation, with contributions from industry leaders such as Google, Microsoft, and Amazon Web Services.
Despite the project's potential, analysts from Dune Analytics have noted a decline in on-chain activity for 2026. Weekly transaction volumes peaked between November 4 and 10, 2025, with 13.7 million transactions, but fell sharply to below 1 million by early January and continued to decline, recording only 112,708 transfers in late March 2026. This comes after the launch of the second version of the x402 protocol in December 2025.
