PING Token and BTC inscription: An "Surge" experiment of the x402 protocol

Recently, the PING Token on the Base chain has brought the x402 protocol to the forefront. Many people say this gameplay is very similar to the wave of BTC inscriptions in 2023 – but where exactly is the similarity? Will the future direction also evolve along the lines of inscriptions?

My judgment is: will.

The underlying logic is remarkably similar

First, let's see how inscriptions work. Users send transactions to the BTC mainnet, occupying specific UTXOs, but BTC itself doesn't care about this matter. What truly decides is the Ordinals indexer - it acts like a referee, scanning all on-chain transactions and determining the validity of inscriptions based on the “First is First” rule.

The method of PING is almost identical. You transfer USDC to the address dynamically returned by x402scan on the Base chain, but the Base chain and the x402 protocol have no idea that you are minting Tokens; to them, this is just a regular ERC20 transfer.

The key point is here: x402scan is the one who sets the rules. It monitors all USDC sent to the specified address, determining which are “valid mints” based on its own standard of exchanging (1 USDC for 5000 PING), and then records this in an off-chain database before issuing coins through the contract.

On-chain legal data + off-chain interpretation rights, this is the common gene of both.

Why it's not appealing but can't be stopped

When inscriptions first came out, the Bitcoin Core team was very resistant—other than filling the BTC mainnet with dust transactions, it was hard to see any value. The doubts faced by PING are similar.

But the problem is that the x402 protocol, as an open standard, will be powerless in the short term.

The logic is very simple: the assets for inscribing are at least still on the BTC mainnet, and if they lose popularity, they can still return BTC. But the USDC minted PING is fully deposited into the treasury wallet designated by x402scan. While the team is crowdfunding, they are also issuing tokens, and the x402 protocol has been completely “taken advantage of”.

Don't rush to criticize. This behavior is more like a “charge horn” operation—forcibly creating a usage scenario for the x402 protocol, with immediate exposure effects. It also serves as a stress test. In a sense, this is the singularity moment of the x402 narrative, which will give rise to a series of improvements and the possibility of ecological prosperity.

The evolution path is already clear

The problem with PING is clear: assets are custodied under centralized entities, which goes against the original intention of the x402 protocol to open a payment channel for AI Agents. It may not necessarily be seamlessly compatible with other x402 protocols, and there are not even unified standards for minting, transferring, or burning.

But this will precisely drive evolution.

Look at the path from BRC20 to ARC20, SRC20, and Runes, and you'll know what will happen next. There will definitely be a bunch of new protocols claiming to be more “orthodox”—those improving custody methods, changing transaction minting forms, gaining support from native protocols… various ideas will emerge.

To exaggerate, even if x402scan runs away and the treasury takes off with the funds, this wave has already begun. The Pandora's box has been opened and cannot be closed.

Reiterating a point: the outbreak of the x402 narrative is inevitable. PING is just the sounding of the charge, and there are many variables in how the market will evolve afterwards.

This sharing is just cognitive logic and does not constitute any investment advice. But there is no need to worry - the upcoming excitement is indeed worth joining.