Coinbase Announces Upgrade for x402 Protocol Enabling Usage-Based Pricing
Cointelegraph
Coinbase has upgraded the x402 protocol to support usage-based pricing for AI compute requests, replacing the previous flat-fee payment model.Summary
Coinbase has launched the 'Upto' scheme for the x402 protocol, enabling variable-cost pricing for agentic AI services like large language model inference. Previously limited to fixed-fee structures, the protocol now allows users to authorize a maximum payment for tasks, with servers charging only the actual cost based on usage metrics such as token count or compute time. This transition aims to support the growing demands of agentic commerce and prevent inefficiencies associated with flat-fee billing. While the protocol was recently transferred to the Linux Foundation, it faces challenges with declining transaction volumes following a peak in late 2025.
(Source：Cointelegraph)