Coinbase has announced an update to the x402 protocol, replacing fixed fees with usage-based payments for AI agents’ computational power.
Usage-based pricing is now live on x402!
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. ↓
— Coinbase Developer Platform🛡️ (@CoinbaseDev) April 9, 2026
The new Upto mechanism will provide autonomous artificial intelligence with access to flexible pricing services, including work with LLM, computations, and database queries.
“Previously, x402 only supported fixed payments, which is suitable for deterministic API, but blocks services where costs depend on the number of tokens, computation time, or query complexity,” the developers explained.
Upto operates on EVM networks and supports all ERC-20 standard tokens. Meanwhile, the CDP Facilitator tool enables transactions without gas fees.
The integration of the new solution comes as the tech sector prepares for the era of autonomous commerce. AI agents are expected to become the “fuel” for network activity growth, necessitating seamless and nearly instantaneous micropayments.
Abandoning Fixed Fees
The Upto scheme allows providers to set maximum rates, while users approve spending within a set limit.
The system charges only for the actual computational costs of completing a task. This protects against overpayments: if a request is simple, the final amount will be lower than the set maximum.
Previously, the cost of light and resource-intensive tasks did not differ. Now users can allocate an exact budget to an AI agent in advance, rather than guessing potential expenses.
The x402 protocol was initially created by Coinbase, but in early April, it transitioned to the management of the non-profit Linux Foundation. Tech giants like Google, Microsoft, and Amazon Web Services are also involved in the project’s development through the x402 Foundation.
Despite interest in the project, Dune Analytics reports a decline in on-chain activity in 2026.
The peak occurred from November 4 to 10 last year, reaching a record 13.7 million transactions. Subsequently, figures began to decline rapidly: in early January 2026, the weekly transaction volume fell below 1 million and continued to decrease throughout the first quarter. In the last week of March, only 112,708 transfers were processed through x402.
Back in December last year, the second version of the x402 protocol was released.