How to organize an X402 hackathon

Author: Steve Ngok, Chief Strategy Officer of DoraHacks

Target Audience: Web3 project founders, DevRel leads, ecosystem heads

Introduction: Why Does Your L1/L2 Need an X402 Hackathon?

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

Strategic value of X402: The X402 protocol revives the HTTP 402 status code (402 Payment Required), bringing internet-native micropayment capabilities to blockchain and seamlessly embedding the settlement layer of the chain into the HTTP infrastructure.

Hackathon Objective: Quickly validate the performance of L1/L2 as a micro-payment settlement layer; plant the seeds of AI agent economy in the ecosystem; attract Web2/API developers into the Web3 space.

Part One: 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, token) in the response body.
• Process Breakdown: Request resource → Receive 402 response (with payment details) → Client-side on-chain payment/signature → Retry request with payment voucher → Access successful.
• Micropayments (Micropayments): x402 aims to enable real-time transactions below $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 High-Impact X402 Tracks and Challenges

The design of the hackathon track must be closely integrated with the technical advantages of your blockchain and the needs of the ecosystem.

1 Infrastructure and Tools (Infra & Tooling)

Challenge Objective: Lower the threshold for developers to integrate x402 and optimize settlement performance.

2 AI Agents and Autonomous Economy (AI Agents & Autonomous Economy)

Challenge Objective: To stimulate the creation of killer AI agent applications that utilize x402 for profit or operation.

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

A successful hackathon relies heavily on incentive mechanisms. Prizes should be seen as entry tickets to the ecosystem.

1. Core Bonus ( The Grand Prizes )

• Set up high prizes ranging from $1,000 to $20,000 for each track.
• The evaluation criteria emphasize the following three points:

1. Elegant implementation of the X402 protocol: Does it truly reflect the efficiency of micropayments and M2M?
2. Technology and Scalability: How to effectively utilize the high performance of your L1/L2 (for example, x402 payment transactions processed per second).
3. Commercial Viability and Innovation: The potential commercial value and market space of the product.

2. Partner Bounty (Bounties)

Invite ecological partners to set up precise bounty tasks to solve specific pain points:

• Stablecoin issuer ( such as Circle): “Best USDC x402 payment application” bounty.
• Web2 API service provider: “The best implementation of monetizing our API with x402 currency” bounty.
• Incubator/Venture Capital: Provides accelerator Fast-Track interview slots or seed round investment intentions of up to $100k .

3. Continuous Support (Ecosystem Grants)

• Link bonuses directly to Grants: Announce that all winners of the core tracks will automatically enter your ecosystem Grants application process and receive priority review.
• Commitment to Long-term Cooperation: Provide long-term technical support from the DevRel team for excellent projects, helping them transition from prototype to mainnet deployment.

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

1. Key Resource Preparation

• Clear Documentation: Provide a set of getting started guides specifically designed for X402, including smart contract templates, Relayer example code, and your L1/L2 chain-specific Gas optimization tips.
• Core Module Pre-deployment: A basic X402 contract is pre-deployed on the test network, and a usable payment Relayer Endpoint is provided for developers to call directly.
• Technical Mentor Team: Assemble a mentor team consisting of L1 core developers and x402 protocol experts to provide 24/7 technical support during the hackathon.

2. Promotion Strategy

• Vertical field outreach: Focus on promoting to the AI developer community, API service providers, and Python/Rust developer groups, rather than being limited to Web3 DApp developers.
• X402 Demo Presentation: Showcase a fully functional x402 Demo during the launch event, for example, a paid AI chatbot (, allowing developers to intuitively experience the efficiency of the protocol.
• Brand Collaboration: Partnering with DoraHacks to leverage its global developer network for targeted promotion.

Conclusion: Unlocking the Potential of On-Chain Economy

Organizing an x402 hackathon is not just a technical showcase, but a significant investment in the future economic model of your Layer 1/L2 blockchain. By embracing the x402 protocol, you are positioning your chain as the core settlement layer for AI agents and next-generation internet services, bringing true and sustainable business innovation to the ecosystem.

About DoraHacks:

DoraHacks is a global leader in developer communities and the creator of the most influential Hacker movements. As the world's largest hackathon platform and an active Hacker community, DoraHacks is dedicated to connecting geeks and emerging technologies worldwide, promoting the development and application of cutting-edge technology. Through its innovative Hackathon AI tools, DoraHacks is achieving full automation in the design and organization of hackathons; at the same time, utilizing BUIDL AI, DoraHacks has realized long-term tracking, showcasing, and ongoing support for startup teams, building a complete developer ecosystem from concept to implementation.