Vision

The future of AI service delivery through intelligent, adaptive payment systems.

Smart Client and Provider Architecture

The Smart Client and Provider architecture introduces an intelligent, adaptive system where clients efficiently interact with servers that dynamically adjust parameters like cost per request to optimize operations. This ecosystem emphasizes:

For Service Providers

Revenue optimization through dynamic pricing
Intelligent resource distribution
Real-time market adaptability
Community-driven reputation building

For Smart Clients

Cost-effective provider selection
Flexible payment handling
Trust-based decision making
Automated optimization

Core Components

Smart Client Features

Decentralized provider discovery, intelligent selection, and real-time cost monitoring

Provider Capabilities

Dynamic pricing, model management, and instant payment processing

Trust Infrastructure

Nostr-based provider validation and community-driven reputation

Dynamic Cost Management

The X-Cashu protocol supports dynamic, usage-based pricing that enables intelligent cost management based on actual resource consumption. This approach protects providers from potential losses while maintaining fair pricing for clients.

Warning: Fixed per-request pricing can be risky. If a user's request requires more tokens or computational resources than anticipated, providers may incur losses.

Recommended Pricing Strategies:

Token-Based Pricing

Charge per input/output token
Set minimum request cost
Apply token-count estimation
Include processing overhead

Dynamic Adjustments

Real-time load balancing
Resource utilization tracking
Peak/off-peak pricing
Market demand response

Cost Protection Mechanisms:

Request Analysis

Pre-request token estimation
Context length validation
Resource requirement checks
Cost threshold alerts

Safety Measures

Maximum request size limits
Automatic request splitting
Progressive charging
Usage monitoring

Implementation Guidelines:

Best Practices:

Implement token counting and cost estimation before processing
Set up real-time usage monitoring and alerts
Use progressive charging for long-running requests
Maintain pricing updates via the /v1/models endpoint
Consider implementing request queuing during high demand

Benefits of Dynamic Pricing:

For Providers

Cost-based revenue protection
Resource optimization
Sustainable operations
Flexible scaling

For Clients

Fair usage-based pricing
Transparent cost structure
Predictable expenses
Quality guarantees

ecash-402-specs

Explore the complete Smart Client and Provider Architecture specifications, including advanced cost management strategies, and more.