Pricing Philosophy

The philosophy and mechanics of knowledge pricing

What Is Knowledge Worth?

Traditional economics struggles with knowledge pricing:

  • Zero marginal cost to share (unlike physical goods)

  • Non-rival — your use doesn't diminish mine

  • Hard to preview — you don't know value until you have it

x402 approaches this differently: price reflects curation cost, not information scarcity.


The Curation Premium

Raw Information Is Cheap

Anyone can scrape the web. AI can generate infinite text. Raw data is abundant and becoming more so.

Curated Knowledge Is Expensive

What's genuinely scarce:

  • Human judgment — Deciding what matters

  • Verification — Confirming accuracy

  • Organization — Structuring for retrieval

  • Context — Understanding implications

  • Time — Years of accumulated expertise

x402 prices this curation layer, not the underlying information.


Pricing Tiers Explained

Micro Tier — $0.001

Use case: Existence checks, quick lookups

"Does this ATLAS know anything about prediction markets?"

Returns: Yes/no with concept count, no details

Standard Tier — $0.01

Use case: Concept definitions, basic queries

"What is Mana in prediction market context?"

Returns: Concept definition, related concepts, 2-3 key insights

Deep Tier — $0.10

Use case: Comprehensive topic analysis

"Explain the relationship between prediction markets and information aggregation"

Returns: Full concept graph, all insights, source content, action items

Premium Tier — $0.25

Use case: Expert synthesis, multi-domain queries

"How do prediction market dynamics relate to epistemology and collective intelligence?"

Returns: Cross-domain synthesis, novel connections, comprehensive analysis


Dynamic Pricing Factors

Base prices adjust based on:

Query Complexity

  • More concepts involved = higher price

  • Cross-domain queries = premium

  • Temporal analysis (trends) = premium

Knowledge Rarity

  • Common concepts = base price

  • Niche expertise = multiplier

  • Exclusive insights = premium

Freshness

  • Recent additions = premium

  • Evergreen content = standard

  • Historical queries = discount

Compute Intensity

  • Simple retrieval = base

  • Graph traversal = moderate

  • AI synthesis = premium


Comparison: x402 vs Alternatives

vs. Web Scraping

Factor
Web Scraping
x402

Cost

$2-10/query

$0.01-0.25/query

Time

30-60 sec

<2 sec

Reliability

Variable

Verified

Signal/Noise

Low

High

vs. Subscription APIs

Factor
Subscription
x402

Commitment

Monthly fee

Pay-per-use

Flexibility

Fixed access

Query-specific

Discovery

Limited

Open marketplace

Efficiency

Pay for unused

Pay for value

vs. Free Content

Factor
Free
x402

Quality

Variable

Curated

Reliability

Uncertain

Verified

Sustainability

Ad-supported

Direct value

Incentives

Engagement

Quality


Setting Your Prices

As a knowledge provider, you control:

Base Multiplier

Set your knowledge's base value relative to standard pricing:

  • 0.5x = Budget tier

  • 1.0x = Standard

  • 2.0x = Premium expertise

  • 5.0x = Rare/exclusive

Domain Premiums

Different knowledge areas can have different multipliers:

  • General knowledge = 1.0x

  • Professional expertise = 2.0x

  • Proprietary research = 5.0x

Access Restrictions

  • Public = anyone can query

  • Allowlist = approved agents only

  • Private = no x402 exposure


Economic Sustainability

For Knowledge Providers

Monthly revenue potential:

Queries/Day
Avg Price
Monthly Revenue

10

$0.05

$15

100

$0.05

$150

1,000

$0.05

$1,500

10,000

$0.05

$15,000

As agent economy grows, query volume scales.

For Knowledge Consumers

Cost comparison for 1,000 queries/month:

Method
Cost

x402 Standard

$10

x402 Deep

$100

Web scraping

$2,000-10,000

Manual research

Priceless (time)


The Virtuous Cycle

x402 creates alignment:

  • Providers incentivized to improve quality

  • Consumers get better results

  • Ecosystem improves overall

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