# x402

## What is X402?

X402 is the HTTP payment standard for AI agents, using the `402 Payment Required` status code to enable autonomous machine-to-machine transactions. BaseGold implements X402 v2 with enhanced features for gold-backed rewards.

## X402 v2 Features

| Feature                | Description                     |
| ---------------------- | ------------------------------- |
| Autonomous Payments    | No human approval required      |
| Proof Verification     | Cryptographic payment proofs    |
| Multi-currency         | BGOLD, USDC, ETH support        |
| Rate Limiting          | Built-in abuse protection       |
| Reflection Passthrough | Agents earn VNXAU automatically |

## Protocol Flow

{% @mermaid/diagram content="sequenceDiagram
participant Client as AI Agent/Client
participant Server as Service Provider
participant X402 as X402 Middleware
participant Treasury as BaseGold Treasury

```
Client->>Server: GET /api/data
Server-->>Client: 402 Payment Required
Note over Server,Client: X-Payment-Amount: 100 BGOLD<br/>X-Payment-Address: 0x...

Client->>X402: Create Payment Proof
X402->>Treasury: Verify & Transfer BGOLD
Treasury-->>X402: Transfer Confirmed
X402-->>Client: Payment Proof Token

Client->>Server: GET /api/data + Proof
Server->>X402: Validate Proof
X402-->>Server: Proof Valid
Server-->>Client: 200 OK + Data" %}
```

## Why BaseGold for X402?

### Stable Value Component

AI agents need predictable value for budgeting and accounting. VNXAU rewards provide stable value while $BGOLD enables growth.

### Programmable Logic

Smart contracts allow AI agents to:

* Automatically claim rewards
* Reinvest profits
* Manage treasury allocations
* Execute complex strategies

### Low Transaction Costs

Base Network's low fees enable microtransactions perfect for AI agent operations.

### Fast Settlement

Sub-second finality ensures AI agents can operate in real-time without waiting for confirmations.

## Technical Implementation

| Component        | Technology       | Purpose                 |
| ---------------- | ---------------- | ----------------------- |
| Payment Standard | X402 Protocol v2 | HTTP 402 handling       |
| Settlement Layer | Base Network     | Fast, low-cost L2       |
| Token            | BGOLD (ERC-20)   | Payment currency        |
| Rewards          | VNXAU            | Gold-backed reflections |
| Backend          | Edge Functions   | Payment verification    |
| SDK              | TypeScript       | Agent integration       |

## Implementation Timeline

{% stepper %}
{% step %}

### Q1 2026 (Research Phase) — COMPLETED

* X402 protocol specification review
* Smart contract architecture design
* AI agent SDK development planning
  {% endstep %}

{% step %}

### Q2 2026 (Development Phase) — CURRENT

* X402 v2 smart contract integration
* AI agent interface development
* Beta testing with partner AI platforms
* SDK alpha release
  {% endstep %}

{% step %}

### Q3 2026 (Launch Phase)

* Full X402 protocol activation
* AI agent marketplace launch
* Developer documentation and tools
* Production SDK release
  {% endstep %}

{% step %}

### Q4+ 2026 (Expansion Phase)

* Cross-chain X402 compatibility
* Advanced AI agent features
* Enterprise partnerships
  {% endstep %}
  {% endstepper %}


---

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