Kaito Shuts Down Yaps Program, Launches Kaito Studio in Response to X API Ban

• Kaito has shut down its Yaps program, a reward-based model for incentivizing content creation on X, following a new API policy by the platform.
• The decision was triggered by a legal notice from X on January 14, 2026, leading to the discontinuation of Yaps.
• Kaito is now transitioning to Kaito Studio, a performance-driven marketing platform targeting serious brands and creators.

The Yaps program incentivized users to post content on X by rewarding them with KAITO tokens. However, the model faced persistent challenges with spam and low-quality content, which became untenable under X's new API rules. Kaito founder Yu Hu acknowledged that the model was unsustainable in the long term and that the new platform will prioritize quality and brand outcomes over mass participation.

The token price of KAITO dropped significantly after the announcement, reflecting the market's response to the shift away from reward-based models. The move underscores the increasing regulatory and platform-specific pressures facing InfoFi (information finance) projects that rely on social media APIs for growth and user engagement.

Why Is This Shift Significant for InfoFi Projects?

X's decision is part of a broader regulatory crackdown on AI-generated spam and content monetization strategies. By banning applications that financially incentivize users to post, X is reasserting control over its platform's user experience. This move aligns with global trends toward tighter regulation of reward-based models that blur the lines between social media and financial incentives. For InfoFi projects, the shift means that their core growth mechanisms may be vulnerable to sudden policy changes.

Kaito's pivot to Kaito Studio reflects an industry-wide recalibration. The new model will operate on a curated and performance-based approach, potentially limiting the reach of the program but offering higher engagement quality. This transition highlights the broader trend of platforms moving away from open, tokenized incentives in favor of more structured partnerships.

What Risks Remain for Kaito and Similar Projects?

The regulatory environment for reward-based models is increasingly uncertain. X's actions are mirrored by other social media platforms and regulatory bodies exploring ways to curtail AI-generated spam. For Kaito and similar projects, this environment raises questions about long-term sustainability and adaptability. The transition to Kaito Studio may mitigate some of these risks, but it also reduces the platform's accessibility for smaller creators and users who benefited from the open incentive system.

Kaito has also announced plans to explore opportunities beyond social media and the crypto sector, aiming to evolve beyond the ownership-economy narrative. The company's future success will depend on how well it can adapt to these new constraints while maintaining its core user base and brand partnerships.

Experts warn that reward-based models are inherently fragile, often leading to short-term engagement spikes followed by quality decline. Kaito's shift to Kaito Studio may offer a more sustainable path, but it remains to be seen whether the market will fully embrace the change or if regulatory pressures will continue to disrupt the InfoFi ecosystem.