Kaito AI's Strategic Pivot: From Incentive-Driven Chaos to Sustainable Creator Ecosystem

The collapse of the InfoFi model-where users were rewarded for generating content in exchange for tokens-has left a trail of ecological and economic wreckage. Kaito AI's abrupt shutdown of its Yaps service in early 2026, following X's API policy changes, marked a pivotal moment in this reckoning. Yet, the company's pivot to Kaito Studio, a tiered creator platform emphasizing quality over quantity, offers a compelling case study in Web3's maturation. By analyzing Kaito's strategic repositioning, cross-industry partnerships, and alignment with broader industry trends, this article evaluates whether the platform can achieve long-term sustainability and growth in a post-InfoFi world.

The InfoFi Model's Downfall: A Cautionary Tale

Kaito's Yaps service, which rewarded users for posting Web3 insights, epitomized the InfoFi era's speculative ethos. By Q4 2025, the platform had distributed over $116 million in rewards to 200,000 monthly active users. However, this model proved unsustainable. X's ban on incentivized content creation-aimed at curbing AI-generated spam and bot-driven engagement-exposed the fragility of Yaps' ecosystem. As one report noted, "The system was plagued by inorganic activity, with bot networks dominating engagement metrics" . The token price of KAITO plummeted by 21% following X's API restrictions, underscoring the volatility inherent in incentive-based models.

Kaito Studio: A Professionalized Approach

Kaito Studio represents a stark departure from Yaps' open, permissionless model. The platform now operates on tiered partnerships, where creators must meet professional criteria to collaborate with brands. This shift prioritizes performance metrics-such as campaign ROI and content quality-over raw participation numbers . By structuring collaborations around defined scope-of-work agreements, Kaito aims to deliver "sustainable value creation" for blockchain companies, moving away from speculative token incentives.

This approach aligns with broader industry trends. As Gartner's 2025 IT Key Metrics Data emphasizes, cross-industry benchmarking of performance metrics is critical for sustainable business performance. Kaito Studio's focus on verifiable outcomes-such as multi-platform distribution on X, YouTube, and TikTok- positions it to capitalize on the growing demand for professionalized Web3 marketing services.

Cross-Industry Partnerships: Expanding Beyond Crypto

Kaito's strategic integrations with exchanges like Binance and Bitvavo, as well as blockchain projects such as Berachain and Bittensor, highlight its ambition to transcend the crypto niche. These partnerships enable Kaito Studio to leverage real-time data from on-chain activity, social media, and Discord via its AI-powered MetaSearch engine, enhancing decision-making for brands.

Moreover, Kaito's ecosystem aligns with global sustainability initiatives. For instance, Japan's hydrogen and green energy partnerships-focused on technological collaboration- mirror Kaito's emphasis on cross-industry innovation. While not directly related, these parallels underscore the platform's potential to contribute to broader societal goals through AI-driven digital transformation.

Sustainability and Growth: Navigating Risks

Despite its strategic advantages, Kaito Studio faces challenges. The KAITO token's utility in the new platform remains undefined, and token price volatility persists. Additionally, the success of tiered partnerships hinges on Kaito's ability to attract high-quality creators-a hurdle given the competitive Web3 marketing landscape.

However, the platform's structured growth mechanisms, such as Yapper Points and a Leaderboard system, aim to prioritize long-term engagement over short-term traffic. These tools reflect a shift toward "credible signal generation", a concept championed by industry analysts as a antidote to the noise of the InfoFi era.

Conclusion: A Post-InfoFi Playbook

Kaito Studio's pivot from incentive-driven chaos to a curated, performance-based model exemplifies the maturation of Web3 platforms. By addressing the limitations of the InfoFi model-spam, volatility, and low-quality content-Kaito positions itself as a scalable solution for brands seeking trust-based creator collaborations. Its cross-industry partnerships and AI-driven tools further reinforce its potential to thrive in a post-InfoFi era. While execution risks remain, the platform's alignment with industry trends and emphasis on sustainability make it a compelling long-term investment.