Limitations of x402
The x402 core protocol defines the fundamental payment flow and data formats, but currently has some limitations:- Single payment method: on EVM, only USDC that conforms to EIP-3009 is supported
- Lack of incentives: no economic incentives for Facilitators
- Fixed trust model: cannot support more flexible trust models (e.g., minimal-trust based on EIP-7702)
What is x402x?
x402x is an extension implementation of the x402 core protocol. Through an extension mechanism (schemes), it remains fully compatible with x402 while supporting more token standards, trust models, and incentive mechanisms, enabling broader ecosystem integration and usage. Core idea: do not change the x402 base protocol; enhance capabilities through scheme extensions.Extensions provided by x402x
1. More payment methods
Extended support for EVM token authorization standards:- EIP-2612: standard Permit signature (supported by many stablecoins)
- EIP-3009: USDC’s transferWithAuthorization (natively supported in x402)
- Permit2: Uniswap’s generalized authorization contract covering all ERC-20 tokens
2. Facilitator incentives
Introduce fee distribution to make the payment ecosystem healthier:- Fee field: define facilitator’s fee share in the seller’s EIP-7702 contract
- Mining-like incentive: facilitator, acting like a miner, earns by submitting on-chain payments
- Ecosystem growth: incentivize more tools and services to integrate x402x
3. EIP-7702 minimal-trust integration
Based on the seller wallet approach using EIP-7702, achieving minimal trust while enabling flexible payment logic:- Principle: the seller upgrades their EOA to a smart account via EIP-7702
- Security: the buyer’s funds are authorized only to the specific seller via signature
- No third party required: the buyer only needs to trust the seller, not the facilitator or others
- Flexibility: the seller wallet contract can implement richer logic (e.g., 1% facilitator fee)
x402x technical architecture
x402x keeps the x402 core flow unchanged, and extends it via:Scheme extension mechanism
Each scheme defines an extended payment method:- exact-permit: exact payment using EIP-2612 Permit
- exact-permit2: exact payment using Permit2
- The
extrafield format inPaymentRequirements - The
payloadfield format inPaymentPayload - The concrete logic for verification and settlement
Backward compatibility
x402x is fully compatible with x402:- Uses the same HTTP 402 response format
- Uses the same
X-PAYMENTandX-PAYMENT-RESPONSEheaders - Follows the same core principles (open standard, HTTP-native, chain/token agnostic, minimal trust, usability)
Why choose x402x?
- ✅ Need to support tokens beyond USDC (e.g., USDT, USD1, DAI, etc.)
- ✅ Need to support more chains (e.g., BSC)
- ✅ Want to incentivize Facilitators to get transactions on-chain faster