KAITO Shuts Down Yaps and Launches Kaito Studio in Response to X's New Policy

Kaito is discontinuing its Yaps program and introducing Kaito Studio in response to X's updated policies against incentivized posting models according to reports.

X's new policies aim to reduce spam and improve content quality by banning applications that reward users for posting as stated.

The KAITO token has seen a decline in value following the policy change, with a reported 20% drop and broader losses in the InfoFi sector according to analysis.

Kaito, a Web3 analytics and marketing platform, has announced the shutdown of its Yaps program, which used a permissionless incentive structure to reward content creation as detailed. The decision follows X's new policy to restrict reward-based content posting, a move aimed at reducing spam and improving user experience according to reports.

The updated X policies are part of a broader industry shift toward prioritizing quality over quantity in content creation. This aligns with regulatory trends like the EU's Digital Services Act and US FTC guidelines as noted. Kaito's transition from Yaps to Kaito Studio reflects this shift, with the new platform designed to foster quality brand-creator partnerships according to analysis.

Kaito's founder, Yu Hu, emphasized that the move toward a curated and performance-driven model is necessary for sustaining relationships with serious brands and creators according to company statements. The shift also reflects the broader evolution of crypto, moving away from the ownership-economy narrative toward real-world finance applications as reported.

Why Is X Targeting Incentivized Posting?

X's updated policy targets incentivized posting models, which have been linked to a surge in low-quality content, including AI-generated spam according to analysis. The platform's head of product, Nikita Bier, stated that these systems have degraded content quality and increased spam as cited.

The policy change aligns with broader concerns about the proliferation of spam and AI-generated content on the platform. X encourages developers affected by the policy to migrate to other platforms like Threads or Bluesky as noted. This shift highlights the challenges of sustaining crypto-native projects reliant on Web2 infrastructure according to industry analysis.

What Does This Mean for the InfoFi Sector?

The ban on incentivized posting apps has had a significant impact on the InfoFi sector, with projects like Kaito and Cookie DAO affected as reported. The KAITO token dropped over 15–20% in value following the announcement, and the broader InfoFi sector has seen sharp declines in market capitalization according to market data.

The InfoFi model relies heavily on single-platform policies, exposing inherent risks when platform rules change as observed. Kaito's move to Kaito Studio and Cookie DAO's discontinuation of Snaps reflect the industry's adaptation to these evolving platform rules according to industry reports.

Kaito's new platform, Kaito Studio, is designed to replace the open leaderboards of Yaps with a more selective, performance-based model as detailed. The KAITO token will continue to play a role in the new platform, though its value and utility will depend on the success of Kaito Studio according to analysis.

What's Next for Kaito and the Market?

Kaito's founder has outlined a strategic shift away from open incentive systems toward a more targeted and performance-driven approach as stated. The company also plans to move beyond crypto as its core vertical in 2026, focusing on real-world finance applications like payments, stablecoins, and tokenization according to company plans.

Other Kaito products remain unaffected by the Yaps shutdown, and the KAITO token will continue to serve a role in the Kaito Studio ecosystem according to reports. The broader market will be watching to see how Kaito and other platforms adapt to the new landscape, with a potential shift from token-based incentives to quality-focused models as reported.

The market's response to Kaito's transition will likely be influenced by the success of Kaito Studio in attracting serious brands and creators. A successful pivot could stabilize the KAITO token and provide a model for other platforms in the InfoFi space according to market analysis.