← Back to Home

Documentation

Everything you need to know about the $402 protocol.

What is $402?

$402 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)
  • BRC-105 — The normative BSV payment handshake for HTTP 402 responses
  • BRC-24 — Lookup Service model for decentralized content discovery

$addresses

Content behind $ path segments is $402-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

Ascending Bond (Recommended)

Price = c × n. Each token individually priced. Early buyers get the cheapest tokens.

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

Fixed

Same price for everyone, regardless of supply.

Logarithmic Decay

Gentler price decrease (legacy model).

Linear with Floor

Linear decrease to a minimum price.

Issuer Verification

Issuers must prove domain control (DNS + well-known) and bind it to a BSV address with an on-chain signature. Use this panel to generate the template and check status. Full spec: Domain Verification

MCP Server

The path402 enables AI agents to interact with $402 content.

Installation

npm install path402

Claude Desktop Configuration

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

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 ascending bonding curves mathematically guarantee 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 and provide BRC-104 proof.
  • Monitor ROI: Use path402_servable to track performance and BRC-24 signals.

Resources

$402Download