Kaito (KAITO) Tokenomics

The token economics for KAITO are structured around incentivizing content creation and supporting the platform's core functions of AI-driven information aggregation and content discovery. The system utilizes a points program, known as YAPs, which is expected to tie into future token rewards, likely through an airdrop.

Issuance Mechanism

While the specific total supply and inflation schedule for the KAITO token are not explicitly detailed, the issuance mechanism is heavily tied to a Key Performance Indicator (KPI)-driven model focused on content creation and community engagement.

• YAPs (Yap Points): This is the primary mechanism for quantifying and rewarding crypto-related content creation. YAPs are earned by users who share insights about crypto online.
• KPI-Driven Rewards: Kaito's system scrapes and analyzes content, assigning YAPs based on factors such as:
  • Relevance and originality of the content.
  • The strength of the creator’s social graph (engagement from influential and knowledgeable people).
• Airdrop Speculation: The Yaps Points Program is widely speculated to be a precursor to a token airdrop, suggesting that the initial token distribution will be heavily influenced by accumulated YAPs.

Allocation Mechanism

The token allocation is designed to support long-term growth, reward core contributors and early backers, and fund ecosystem initiatives. The total supply is distributed across several key groups, with a significant portion dedicated to ecosystem growth and long-term creator incentives.

Note: The total allocation percentages provided in the data do not sum to 100%, indicating that a portion of the total supply is not detailed in the provided allocation breakdown.

Usage and Incentive Mechanism

The KAITO ecosystem operates through three main products—Kaito Pro, Kaito YAPs, and Kaito Connect—with incentives primarily focused on driving content creation and attention.

Kaito YAPs (Tokenized Attention)

YAPs function as a reputation and discovery mechanism for content creators. They quantify the value of content, treating the system as a public good that Kaito does not currently charge for.

• Incentive Structure: Users earn YAPs for producing high-quality, insightful, and relevant crypto content, primarily on platforms like X (Twitter).
• Utility: While YAPs currently lack direct financial value, they are intended to be used by developers and protocols to:
  • Identify key opinion leaders (KOLs).
  • Reward top content creators.
  • Integrate into new social applications.

Kaito Connect (Incentive Layer)

Kaito Connect is built on top of YAPs and serves as a content discovery tool and a potential launchpad.

• Yapper Launchpad: This mechanism aligns market forces around content creation. Brands and protocols can bid for audience attention, while creators produce content aligned with those bids. Users engage by voting on which brands receive attention, influencing content creation and distribution through financial incentives and user preferences.
• Focus: Kaito Connect focuses exclusively on incentivizing content creation, contrasting with comparable platforms like Layer3, which incentivize a broader range of actions, including on-chain activity.

Locking Mechanism and Unlocking Schedule

The token distribution for KAITO includes a vesting schedule for key stakeholders, utilizing a cliff and monthly linear vesting structure.

Unlocking Schedule Details

The vesting schedule for the major allocations begins with a cliff, followed by monthly unlocks extending until early 2029.

Specific Cliff Unlocks for Creator Incentives

The Long-term Creator Incentives allocation also includes specific, large, instant unlocks on a semi-annual basis:

• 2027-08-20: 4,950,000 tokens unlocked instantly (cliff)
• 2027-02-20: 4,950,000 tokens unlocked instantly (cliff)
• 2026-08-20: 4,950,000 tokens unlocked instantly (cliff)

The primary vesting period for most allocations begins on February 20, 2026, and concludes on January 20, 2029. This structure suggests a significant lock-up period for core contributors, early backers, and the foundation, ensuring long-term alignment with the project's success.

Post-TGE Volatility and Valuation

The upcoming token generation event (TGE) and airdrop are expected to introduce high volatility due to potential sell pressure from recipients and aggressive shorting, which is common for new token launches.

Based on comparisons with similar projects in the AI information aggregation (AIXBT, Cookie.fun) and incentivization (Layer3) sectors, the potential initial Fully Diluted Valuation (FDV) range for KAITO is estimated to be between $400 million and $600 million. This valuation is heavily reliant on peer comparisons due to a current lack of public data on Kaito's adoption and revenue fundamentals.