How to organize an X402 hackathon: Building an AI-driven, internet-native payment layer

Author: Steve Ngok, Chief Strategy Officer, DoraHacks

Target audience: Web3 project founders, DevRel lead, ecosystem lead

Introduction: Why do you need an X402 hackathon for your L1/L2?

Existing Web3 monetization methods (Tokenomics, NFT collections) face significant friction with the instant payment/API calls of the Web2 world. The rise of AI agents urgently requires a machine-readable, native, and low-cost payment standard.

The strategic value of X402: By reviving the HTTP 402 status code (402 Payment Required) , the X402 protocol brings internet-native micropayment capabilities to the blockchain, seamlessly embedding the chain's settlement layer into the HTTP infrastructure.

The hackathon's goals are: to quickly verify the performance of L1/L2 as a micropayment settlement layer; to implant the seeds of AI agent economy into the ecosystem; and to attract Web2/API developers to the Web3 field.

Part 1: Understanding X402: The Next Generation Web3 Payment Standard

1. X402 Protocol Core Mechanism

• HTTP 402: Payment Required . The server returns this status code and includes the required payment details (such as address, amount, and token) in the response body.
• Process breakdown: Request resource → Receive 402 response (with payment details) → Client-side on-chain payment/signature → Request to retry with payment credentials → Access successful.
• Micropayments: x402 aims to enable real-time transactions under $0.01. This requires your chain to have extremely low gas fees and high throughput to prove its viability as a micropayment settlement layer.

2. Application Scenarios of X402: The Cornerstone of the AI Economy

Part Two: Designing a High-Impact X402 Track and the Challenges

The design of a hackathon course must be closely integrated with your blockchain's technological advantages and ecosystem needs.

1. Infrastructure & Tooling

2. AI Agents & Autonomous Economy

Challenge objective: To foster killer AI agent applications that monetize or operate using x402.

3. Web3 Native Innovation and Experience (Web3 Native & UX)

Challenge objective: Demonstrate how x402 can improve the monetization model and user experience of existing DApps.

Part Three: Incentive Structure and Bonus Strategy

For a successful hackathon, incentive mechanisms are crucial. Prize money should be seen as an entry ticket to the ecosystem.

1. The Grand Prizes

• High prize money of $1,000 - $20,000 is offered for each track.
• The evaluation criteria emphasize the following three points:

1. The elegant implementation of the X402 protocol: Does it truly embody micropayments and M2M efficiency?
2. Technology and Scalability: How to effectively leverage the high performance of your L1/L2 (e.g., x402 payment transactions per second).
3. Commercial viability and innovation: the product's potential commercial value and market potential.

2. Partner Bounties

Invite ecosystem partners to set up targeted bounty tasks to address specific pain points:

• Stablecoin issuers (such as Circle): Bounty for "Best USDC x402 payment application".
• Web2 API service provider: Bounty for "Best implementation of monetizing our API with x402".
• Incubators/venture capital firms: offer Fast-Track accelerator interview opportunities or seed round investment intentions of up to $100k .

3. Continuous support (Ecosystem Grants)

• Link prize money directly to Grants: Announce that winners from all core tracks will automatically enter your ecosystem's Grants application process and receive priority review.
• Commitment to long-term cooperation: Providing long-term technical support from the DevRel team to outstanding projects, helping them complete the transformation from prototype to mainnet deployment.

Part Four: Execution and Promotion: Attracting High-Value Developers

1. Preparation of Key Resources

• Clear documentation: Provides a set of getting started guides designed specifically for X402 , including smart contract templates, Relayer sample code, and gas optimization techniques specific to your L1/L2 chain.
• Core module pre-deployment: A basic X402 contract is pre-deployed on the testnet, and a usable payment Relayer Endpoint is provided for developers to call directly.
• Technical Mentor Team: A mentor team composed of L1 core developers and x402 protocol experts will be assembled to provide 24/7 technical support during the hackathon.

2. Promotion Strategy

• Vertical reach: Focus on promoting to AI developer communities, API service providers, and Python/Rust developer groups, rather than just limiting it to Web3 DApp developers.
• Demo X402: Showcase a fully functional x402 demo (e.g., a paid AI chatbot) in the launch event to give developers a direct feel for the protocol's efficiency.
• Brand Partnership: Partner with DoraHacks to leverage its global developer network for targeted promotion.

Conclusion: Unleashing the potential of the on-chain economy

Organizing an x402 hackathon is more than just a technical showcase; it's a significant investment in your Layer 1/L2 blockchain's future economic model . By embracing the x402 protocol, you're positioning your chain as the core settlement layer for AI agents and next-generation internet services, bringing genuine, sustainable business innovation to the ecosystem.

About DoraHacks:

DoraHacks is a leading global developer community and the creator of the most influential hackathon movement. As the world's largest hackathon platform and active hacker community, DoraHacks is dedicated to connecting geeks and emerging technologies worldwide, driving the development and application of cutting-edge technologies. Through its innovative Hackathon AI tools, DoraHacks is automating the design and organization of hackathons; simultaneously, leveraging BUIDL AI, DoraHacks provides long-term tracking, demonstration, and continuous support for startup teams, building a complete closed-loop developer ecosystem from idea to implementation.