Coinbase has rolled out an upgrade to its x402 protocol, introducing a usage-based pricing model called “Upto” for agentic AI compute requests. This shift from a flat fee structure to a variable-cost system allows users to pay based on actual usage, such as token count or compute time, addressing previous inefficiencies where users either overpaid or underpaid for AI tasks. The upgrade is particularly significant as it aims to facilitate smoother transactions for the anticipated surge in demand for agentic commerce.
This development is crucial for the financial markets, especially as major tech firms like Google, Microsoft, and Amazon Web Services are involved through the x402 Foundation. The move is expected to enhance adoption of the protocol amid a backdrop of declining transaction volumes, which fell sharply from a peak of 13.7 million in November to just over 112,000 by late March.
For market professionals, the key takeaway is that the Upto scheme could revitalize interest in the x402 protocol, potentially leading to increased transaction volumes and engagement from firms looking to leverage AI capabilities more efficiently.
Source: cointelegraph.com