Cost-based pricing makes tokenmaxxing always profitable — but may dull model progress

menhguin · x · 2026-10-30

Continuing the value-based pricing debate, the author argues that under cost-based billing, heavy usage (tokenmaxxing) will always be profitable for users — a good thing, since much criticism of tokenmaxxing centers on unclear ROI. The long-term downside: vendors would have little incentive to build smarter models.

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