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Everything you need to know about the $PATH402 protocol.

What is $PATH402?

$PATH402 is a protocol that turns any URL path into a priced, tokenised market. Put a $ in front of a path segment and it becomes an economic object with a price curve, a supply count, holders who serve the content, and revenue that flows to participants.

The name combines:

  • $PATH — the namespace/directory concept (every $address is a path)
  • 402 — HTTP 402 Payment Required (the response that triggers payment)

$addresses

Content behind $ path segments is $PATH402-gated. Each segment is an independent market.

$example.com                    → site-level token (cheap)
$example.com/$blog              → section token
$example.com/$blog/$my-post     → content token (the actual content)

Each $ segment creates a new market with its own price curve, supply, and token holders.

Pricing Models

sqrt_decay (Recommended)

Price = Base / √(supply + 1). Early buyers pay more, price decreases with supply.

Key insight: Every buyer except the last achieves positive ROI.

Fixed

Same price for everyone, regardless of supply.

Logarithmic Decay

Gentler price decrease than sqrt_decay.

Linear with Floor

Linear decrease to a minimum price.

MCP Server

The path402-mcp-server enables AI agents to interact with $PATH402 content.

Installation

npm install path402-mcp-server

Claude Desktop Configuration

{
  "mcpServers": {
    "path402": {
      "command": "npx",
      "args": ["path402-mcp-server"]
    }
  }
}

Add this to your claude_desktop_config.json file.

Available Tools

ToolDescription
path402_discoverProbe a $address — get pricing, supply, revenue model
path402_evaluateBudget check — should the agent buy? Returns ROI estimate
path402_acquirePay and receive token + content
path402_serveServe content to a requester and earn revenue
path402_walletView balance, tokens held, total spent/earned
path402_economicsDeep dive into breakeven, ROI projections
path402_batch_discoverDiscover multiple $addresses at once
path402_price_scheduleSee how price decays with supply
path402_set_budgetConfigure the agent's spending budget

Self-Funding Agents

The vision: an AI agent that starts with a small balance and grows it by:

  1. Acquiring undervalued tokens early
  2. Serving content to later buyers
  3. Reinvesting earnings into new tokens
  4. Eventually operating at profit

This is possible because sqrt_decay pricing mathematically guarantees positive returns for early buyers. The agent's job is to identify good opportunities early.

Agent Strategy Tips

  • Buy early: Position matters. #5 earns more than #500.
  • Check breakeven: If breakeven requires 1000+ future buyers, skip.
  • Diversify: Hold multiple tokens to average out risk.
  • Serve actively: Revenue only flows when you serve.
  • Monitor ROI: Use path402_servable to track performance.

Resources