Kaito AI Sunsets Yaps Program as Social Media Platforms Crack Down on Incentivized Posting
In a major strategic reorganization that has sent shockwaves through the “Information Finance” or InfoFi sector, Kaito AI officially announced the sunsetting of its flagship social product, Yaps, on January 15, 2026. The decision follows a decisive policy shift by the social media platform X, formerly Twitter, which revoked API access for applications that financially reward users for engagement. Nikita Bier, the head of product at X, clarified that the move was necessary to purge the platform of “AI slop” and reply spam generated by automated bots chasing crypto rewards. Kaito’s Yaps, which allowed creators to earn tokens for amplifying brands, had successfully built a community of over 150,000 members, but founder Yu Hu acknowledged that the fully permissionless, incentive-driven model is no longer viable under the current constraints of major social platforms.
The Strategic Pivot to Kaito Studio and the Professionalization of Creator Marketing
Following the immediate wind-down of the Yaps leaderboards, Kaito is transitioning its focus to a new, more selective product called Kaito Studio. Unlike the open-participation model of Yaps, Kaito Studio will operate as a tier-based marketplace where brands can collaborate with vetted creators based on specific, high-quality performance metrics. This shift represents a broader industry trend in 2026 away from mass airdrops and toward measurable return on investment for marketing campaigns. Kaito Studio will offer best-in-class analytics and expand its reach beyond X to include platforms like YouTube, TikTok, and Threads. By moving toward a model that rewards relevance and consistency rather than sheer volume, Kaito aims to attract high-quality creators and institutional brands that were previously deterred by the noise and low-quality content associated with the earlier “post-to-earn” era.
Market Fallout and the Long-Term Vision for the InfoFi Ecosystem
The announcement of the Yaps shutdown had an immediate and severe impact on the InfoFi market, with the native KAITO token dropping approximately seventeen percent to 0.57 dollars within hours. Other projects in the space, such as Cookie DAO, also saw double-digit declines as the realization set in that the “permissionless distribution” narrative faces an existential threat from centralized platform owners. Despite the short-term market carnage, Kaito remains committed to its long-term vision of becoming a foundational infrastructure layer for the creator economy. The firm emphasized that its core products, including Kaito Pro and its upcoming Markets platform, remain unaffected by the sunsetting of Yaps. By pivoting toward a professionalized marketing service and expanding into non-crypto verticals like AI and traditional finance, Kaito is betting that the future of Web3 lies in providing utility-driven services that can thrive even as social media giants tighten their grip on data access.
