Kaito Stops Yaps: X Tight on Post Incentives, InfoFi Abbreviation Becomes a Highlight

Policy changes from X regarding applications that reward users have triggered a wave of industry adjustments. Kaito, a leading crypto analytics platform, is one of the most significantly affected, forcing the company to cease its flagship product and revolutionize its business model. This event reflects the firm new standards implemented by X for InfoFi applications—short for Information Finance, a growing sector where users are compensated for their informational contributions.

New X Policy Sparks Wave of Change in the InfoFi Ecosystem

Nikita Bier, X’s head of product, announced that the platform will no longer allow applications to pay users for posting content. The main reason behind this decision is the surge in AI-generated spam and automated responses that degrade the quality of user feeds. To enforce this new regulation, X has revoked programmatic access from affected developers, cutting direct connections to the platform.

For applications relying on an incentive-based model, this move marks a forced turning point. Developers whose contracts have been terminated are now encouraged to consider migrating to alternative platforms like Threads or Bluesky, opening opportunities for the emerging social media ecosystem.

Kaito Community Faces Direct Impact

Kaito, as a major player in the InfoFi industry, faces tangible consequences. The Kaito Yapper community—serving as a hub for users sharing insights about crypto projects—was suddenly blocked on X. This community previously had around 157,000 members, making it one of the most active communities within the ecosystem. Blockchain investigator ZachXBT highlighted that this blocking directly followed the policy change announcement.

Yaps itself is an innovative product where users can earn rewards by tweeting about specific brands or projects. Although this model successfully attracted hundreds of thousands of users with large followings—especially from Korea—it also contributed to the proliferation of AI-generated content that disrupts the overall user experience on X.

Kaito Shifts to New Business Model: Kaito Studio

Yu Hu, founder of Kaito, acknowledged that the fully decentralized distribution model and the “no longer viable” incentive approach are no longer suitable given current platform constraints. This acknowledgment came after in-depth discussions with X regarding the application’s future.

As a replacement for Yaps, Kaito launched Kaito Studio—a creator marketing platform adopting a more traditional tier-based approach. The new platform focuses on more selective brand-creator partnerships, providing in-depth analytics, and supporting cross-platform content distribution beyond X, including YouTube and TikTok. This transition aims to keep Kaito relevant in a constantly evolving landscape while complying with modern social media standards.

Kaito ensures that these changes will not affect other products, including Kaito Pro, API, Launchpad, and upcoming Markets products. More importantly, the KAITO token will continue to play a central role in the Kaito Studio economy, although implementation details will be announced later.

Market Reaction and Future of the KAITO Token

The announcement of Yaps’ discontinuation was immediately reflected in the performance of the KAITO token. According to recent data, the token is trading at $0.37 with a 24-hour decrease of 5.32%. Although this figure is lower than the 17% drop reported immediately after the initial announcement, the ongoing decline indicates that the market is still absorbing the full impact of these strategic changes.

Kaito’s story reflects the challenges faced by the entire InfoFi sector—its evolution will heavily depend on the platform’s ability to adapt to increasingly strict regulations while maintaining an attractive value proposition for creators and users. Kaito Studio represents industry efforts to find a balance between innovative incentive models and compliance with modern platform standards.