How Nikita Bier's X Policy Shift Forces Kaito to Sunset Yaps and Reshape InfoFi Strategy

When X head of product Nikita Bier announced new platform policies restricting apps that financially reward users for posting, the ripple effects reverberated across the crypto ecosystem. The policy, driven by concerns over AI-generated spam and platform quality, marked a decisive moment for incentivized social platforms—particularly for Kaito’s Yaps product, which had built a community of approximately 157,000 members around rewarded posting.

Nikita Bier Implements Sweeping Ban on Incentivized Posting

Nikita Bier’s decision to revise X’s developer policies reflects a broader platform struggle against “AI slop and reply spam,” issues that had plagued social networks across the industry. The policy prohibits applications from financially incentivizing user-generated content, a direct hit to the emerging InfoFi category—a sector where users are compensated for generating insights and information about projects or brands.

The enforcement was swift and comprehensive. Nikita Bier confirmed that programmatic API access had already been revoked for affected developers, eliminating the technical infrastructure these apps relied on. For platforms like Kaito that had built products around this model, the policy shift left no room for negotiation. Developers exploring alternatives were pointed toward emerging platforms like Threads and Bluesky, though the ecosystem effects of such migration remain unclear.

InfoFi Platform Kaito Pivots to Kaito Studio Model

Kaito founder Yu Hu acknowledged that the permissionless, incentive-driven distribution model is “no longer viable” following direct engagement with X. Rather than resist the policy, Kaito announced plans to sunset Yaps entirely, replacing it with Kaito Studio—a fundamentally different approach to creator partnerships and brand marketing.

Kaito Studio represents a strategic reset: moving from a permissionless, reward-based system to a curated, tier-based platform that emphasizes selective partnerships between brands and creators. The new model incorporates analytics and extends distribution beyond X, integrating YouTube, TikTok, and other platforms into a more comprehensive creator economy solution. This shift acknowledges that the days of purely incentivized, open participation are ending—replaced by more controlled, partnership-driven structures.

The company confirmed that other products including Kaito Pro, its API infrastructure, Launchpad, and upcoming Markets product will remain operational. The $KAITO token will continue playing a role in the Studio ecosystem, though specific mechanics are still being finalized.

$KAITO Token Faces Market Pressure Amid Strategic Restructuring

The market responded immediately to the announcement. Following Nikita Bier’s policy disclosure and Kaito’s product discontinuation announcement, the Kaito Yapper community—with its 157,000 members—was removed from X. At the same time, the $KAITO token entered a decline phase.

Current market data reflects ongoing pressure: the token trades at $0.34 with a 24-hour decline of 11.75%, showing continued sensitivity to the platform’s strategic pivot. This represents the market’s assessment that Kaito Studio, while potentially more sustainable, lacks the viral growth potential and community engagement that characterized Yaps’ early momentum.

The Broader InfoFi Reckoning

The events surrounding Nikita Bier’s policy implementation highlight a fundamental tension within InfoFi and incentivized content platforms. While the model attracted hundreds of thousands of users—particularly in Korea where Yaps developed a substantial following—the prevalence of AI-generated content undercut the value proposition. When algorithmic spam drowns out human insight, incentive mechanisms lose their effectiveness.

Kaito’s transition from Yaps to Kaito Studio signals industry recognition that permissionless models face structural constraints. More controlled curation, selective partnerships, and cross-platform distribution may prove more resilient than open participation systems. Yet whether this shift creates sustainable value for $KAITO token holders and the broader creator economy remains an open question.