# X402ERC20
# Overview
X402ERC20 is a token optimized for signature-based approvals and signature-based transfers. It is designed for payment-style flows, delegated transaction execution, and systems where an off-chain authorization should be usable on-chain by another party. For buyers, this model stands out more for transaction UX and integration readiness than for unusual tokenomics.
It is specifically well aligned with the x402 protocol and is ready for ERC-8004 style integrations, making it suitable for payment and authorization flows initiated by end users, applications, or AI agents.
# When to use it
This model is useful for payment networks, API-driven products, advanced wallet flows, custodial or semi-custodial interfaces, off-chain order systems, and applications that want users to authorize actions by signature rather than by multiple direct transactions. It is especially relevant when reducing friction is a higher priority than adding treasury or governance mechanics. It is a natural fit for projects that want to support x402 or ERC-8004 style token payments and authorization flows for both human users and AI agents.
# How it works
The token is deployed with a custom name, symbol, decimals value, and fixed initial supply. It behaves like a standard ERC-20 for transfers and allowances, but it adds ERC-2612 permit support for signed approvals and ERC-3009 support for signed transfer authorizations. This means a holder can authorize a spender or authorize a transfer off-chain, and another party can later submit that authorization on-chain. The contract also allows unused transfer authorizations to be canceled and exposes the signature domain information required by integrations. These capabilities are the foundation that makes the token ready for x402 and ERC-8004 style usage, where payment intent and execution may be separated and may be handled by applications or AI agents on behalf of a user.
# Key features
- Users can transfer tokens and manage allowances like with a standard ERC-20.
- Users can authorize spending through an off-chain signature instead of submitting a separate approval transaction first.
- Users can authorize transfers by signature so another party can execute them on-chain.
- Recipients can claim a signed transfer in a receiver-protected way that helps avoid certain execution risks.
- Users can cancel an unused signed transfer authorization before it is executed.
- Users, applications, and AI agents can use the token in x402-native or ERC-8004 style payment and authorization flows.
- Wallets and applications can inspect the token’s signature-domain information and versioning data for integration support.
- The token exposes custom decimals, allowing projects to define balance precision.
# Considerations
- Supply is fixed after deployment, so the model is focused on usability rather than flexible issuance.
- The biggest benefits appear when surrounding wallets and applications actively support permit and authorization flows, including x402 or ERC-8004 compatible experiences.
- Buyers who mainly hold the token passively may not interact directly with the advanced signature features, but those features can still improve ecosystem integrations.