X has overhauled its developer API to prohibit applications that reward users for posting content on the platform. Nikita Bier, X’s head of product, shared the update, stating that the platform would block apps rewarding posts on X to maintain content quality. This decision targets information finance (InfoFi) projects in the crypto and blockchain ecosystem, which have relied on incentivized posting to drive engagement and monetize information. InfoFi had led to a proliferation of AI slop on crypto Twitter (X), which affected the user experience on the platform.
Crypto platforms associated with these InfoFi models experienced a sharp drop in value following the announcement. Beyond this, many developers lost access to essential tools for tracking user activity.
The InfoFi Model at the Center of the Controversy
InfoFi capitalizes on the large volume of data generated by daily internet usage. By pairing artificial intelligence with blockchain technology, developers establish markets where social engagement and user attention function as currency. InfoFi assigns a market price to digital behavior, converting standard online interactions into property that creators can trade or hold.
Operationally, infoFi platforms bridge decentralized networks and high-level data processing. They aggregate activity from blockchain histories and external media (in this case, X), organizing it into actionable resources. Users who supply verified, high-quality information receive tokenized rewards.
Kaito Pivots to Studio Model After Ending Open Incentives
The KAITO token dropped within minutes of Nikita Bier’s post, falling from around $0.70 to $0.56. This swift decline reflected investor concerns over the project’s continued ability to reward user engagement through X-based tracking mechanisms. Yu Hu, founder of Kaito, shared that the team had chosen to end the Yaps product and its open incentive leaderboards with immediate effect.
Although Yaps reflected important Web3 values by allowing open participation and rewards for content, the group recognized that this unrestricted model no longer matched what premium brands, committed creators, or X required for consistent quality and reliability. Following conversations with various stakeholders, Kaito decided to launch Kaito Studio as its next main direction.
Cookie DAO Ends Creator Campaigns to Ensure API Compliance
Like Kaito, Cookie faced comparable downward pressure. Consequently, its associated token dropped 21% as participants reevaluated the long-term viability of reward models that depended heavily on platform-specific activity.
In response, Cookie DAO announced the immediate sunset of its Snaps platform and all active creator campaigns on January 15, 2026. The team explained that the decision followed discussions with X about API and usage policies, to stay compliant and protect the integrity of its broader data products. Snaps, which rewarded creators based on mindshare and engagement, was closed effectively, though other services like Cookie3 Analytics and KOL Intelligence continue unaffected.
X Crypto Community Welcomes The Removal Of ‘AI Slop’
The crypto community welcomed X’s update, as it removes the AI slop and spam that had cluttered timelines and obscured quality projects. With less noise, meaningful blockchain discussions may finally thrive. X could also become a cleaner, more trustworthy platform for crypto enthusiasts, prioritizing real human experiences over financially driven interactions.
