Kaito AI Unveils Tokenomics

Kaito AI (KAITO) has officially announced the tokenomics for its KAITO token, causing concerns over insider allocations. According to Kaito’s official website, more than half of the total supply (56.67%) is allocated to the Community and Ecosystem.

Token Allocation Breakdown

• 19.5% for airdrops and incentives
• 32.2% for ecosystem expansion
• 10% for early community rewards
• 7.5% for long-term creator incentives
• 5% for liquidity incentives
• 10% reserved for the Foundation to ensure sustainable development
• 25% for core contributors
• 8.3% for early backers
• 2% for Binance community partnerships

Insider Concerns

On-chain analysts, including RunnerXBT, have raised alarms about insider allocations:
> “43.3% of the total supply is earmarked for insiders—35% for the team and 8.3% for early investors.”
> — RunnerXBT.eth (@RunnerXBT) February 20, 2025

Kaito’s Role in the Ecosystem

Kaito AI has garnered attention after launching Yaps in December 2024, an open protocol designed to tokenize attention. The KAITO token is crucial in Kaito’s ecosystem, facilitating the flow of attention within its “InfoFi” framework.

Marketing Controversies

Kaito AI has faced criticism for its marketing strategies, which some say detracts from the quality of discussions on Crypto Twitter. Hasu, Strategy Lead at Flashbots, remarked:
> “Kaito has made CT a much worse place. Discussion quality has gone down, outrage marketing has further increased.”
> — Hasu⚡️🤖 (@hasufl) February 6, 2025