The Involution Behind KOL: Is the Kaito Yap Model Really Sustainable?
Author: Nianqing, ChainCatcher
Have you noticed that many KOLs have started to Yap while scrolling through X these days? What are they all Yapping about?
Yaps is a points system launched by Kaito, an AI-driven crypto data analysis and social incentive platform, where X users can earn Yap points by posting high-quality crypto content (tweets, interactions). Recently, Berachain airdropped to Yappers, and today Kaito announced that the first 1,000 ANIME (the anime token under Azuki) Yappers and Kaito Genesis NFT holders can claim ANIME tokens. Coupled with collaborations with multiple projects like Story Protocol, Movement Labs, and MegaETH, the expectation that "projects on Yap Kaito can receive airdrops" has once again heightened Kaito's popularity.
Similar to the previous trajectory of Web3 social flywheels, KOLs and influential figures with existing clout thrive in the Yaps points system. They tirelessly produce articles on X and form matrices with other ICT (Inner Crypto Twitter). The benefit is that discussions about crypto and outputs on popular projects have increased, but foreseeable downsides are gradually emerging, such as the proliferation of low-quality content, excessive interactions causing harassment for KOLs, and deeper issues like influence monopolization. Kaito has recently announced the upcoming launch of Shadow Ban to improve the current chaos through technical means. However, controversies and doubts continue.
In 2024, fundamental analysis faces a complete collapse in the crypto space, and the current market increasingly confirms the saying, "Attention in crypto is everything." If memes are a result of the attention economy, then Kaito is more like an upstream business of the attention economy, focusing on how to manage and allocate attention. But the essence of the attention economy is simply the next better thing. As a product of this era, can Kaito overcome short-term behaviors and become a sustainable, practically useful product?
This article will provide a detailed analysis of Kaito. Due to the existence of Yap, there are many (inflated) articles about Kaito on X, but I still recommend you read this article.
Kaito is an AI-driven crypto data analysis and social incentive platform. According to the RootData page, Kaito completed two rounds of financing in 2023, raising $5.3 million in seed funding and $5.5 million in Series A funding, with investors including Superscrypt, Spartan, Dragonfly, Sequoia China, and Jane Street.
Founder and CEO Yu Hu graduated from Cambridge University and previously worked at traditional financial companies like Citadel and Deutsche Bank. In a recent podcast, Yu Hu revealed that he grew up in China, studied in the UK, and later started businesses in the US and Singapore. Yu Hu is not a tech geek; he is very skilled in trading and believes that trading is the closest way to the market. He also mentioned in the podcast that Kaito will achieve profitability in June 2024 and has seen over a hundredfold growth in the past year.
Its core functions include:
1. Crypto Social Data Analysis: By scraping social data from public platforms like Twitter (X) (such as interactions, follower graphs, content dissemination), Kaito builds a KOL influence scoring model to provide quantitative marketing decision support for project parties. Currently, some features of Kaito are paid; its official website shows that the annual subscription price for Kaito Pro is $833/month, while the monthly price is $1,099/month. Why is the pricing so high? Simply put, the cost of using the commercial API of the X platform is very high, and regulatory restrictions on call volumes lead Kaito to limit user access through price increases, ultimately opting for a ToB model.
Related Reading: “ In-depth Analysis of Kaito: How Did the Yap Activity Ignite the Social Flywheel? ”
2. Yaps Points System: Users earn Yap points by posting high-quality crypto content (tweets, interactions), which may be redeemable for tokens or other incentives (such as airdrops, project collaboration rewards) in the future. Kaito emphasizes that to prevent manipulation and witch-hunting, earning Yap points is not easy and does not rely on quantity. The total amount of Yaps distributed daily is only 25,000, while the total user base has exceeded 250,000 (as of January data), making its scarcity evident. As user numbers rapidly increase, the difficulty of earning Yap points has multiplied, creating intense competition.
The algorithmic mechanism of Yaps ensures that KOLs and major influencers in the core influence circle will "grow stronger," while novice users find it challenging to earn Yap points. This is because the evaluation mechanism relies on reputation-weighted influence rather than raw impressions or engagement. Therefore, if the cumulative qualified social engagement of a tweet does not reach a specific threshold, points may not be awarded.
The core principles for Yap point distribution are:
Quality > Quantity: Garbage content (duplicate, no analysis) will be filtered out by the system, resulting in zero points.
Hotspot Orientation: Provide in-depth analysis around projects recommended on the Kaito panel (such as Berachain, Monad, Xion).
High-Quality Interaction: Interacting with major influencers about the content of the tweets (comments, likes) is more efficient than merely posting.
In summary, only content that is hot, high-quality, valuable, and can genuinely spark discussions in the crypto industry has the opportunity to earn points. Additionally, bringing in new users will also earn points, but the condition for earning points is that the new users must earn Yap points.
3. KOL Scoring and Leaderboard: Kaito dynamically ranks KOLs based on AI algorithms, forming a "Yapper Leaderboard," which serves as a reference standard for project parties to select collaboration partners.
One of Kaito's strengths is filtering out smart followers from potentially inflated follower lists on the X platform, reducing the interference of bot accounts. This feature has strong commercialization potential and largely addresses the pain points of KOL marketing, providing project parties with quantitative standards through its own AI scoring mechanism. The leaderboard based on Yap points connects high-scoring users with project needs, forming an "influence-as-a-service" model, where project parties can purchase the "influence" of top-ranked users, making it more transparent compared to traditional KOL payments.
In 2024, fundamental analysis faces a complete collapse in the crypto space, and the current market increasingly confirms the saying, "Attention in crypto is everything."
If memes are a result of the attention economy, then Kaito is more like an upstream business of the attention economy, focusing on how to manage and allocate attention.
We can specifically categorize participants in the attention economy into:
Attention creators
Attention consumers
Attention distributors
Strictly speaking, Kaito is not just a simple crypto data analysis platform; it plays the role of an attention distributor, aiming to create a better network for efficiently allocating information, attention, and capital. Kaito founder Yu Hu has also made two judgments: 1. In the age of the attention economy, personal brands will become increasingly important; 2. In the AI era, people will place more emphasis on connections between individuals.
Yap is the tokenization of this "attention," and the Yap to Earn model aligns with the strong demand for traffic and community participation in the crypto industry. This is also the biggest difference between Kaito and Friend.tech's "direct monetization of influence," as Kaito's definition of influence is more refined and sufficiently unitized. As mentioned earlier, the scarcity of Yap points set at the beginning directly determines the influence of content in this space.
Of course, Kaito's surge is also inseparable from the wealth effect. More critically, the events constituting Kaito's wealth effect are not one-time or short-term behaviors. As an influence-launching platform, Kaito's mechanism can significantly help early-stage, unlaunched projects expand consensus. Recently, Berachain airdropped to Kaito Yappers, and well-known projects like Story Protocol, Movement Labs, Eclipse, and MegaETH have launched on Kaito's platform, promising to incorporate Yap points into airdrop or incentive plans, thus attracting more users.
Moreover, the valuation of Yap points is also assigned a higher value due to their scarcity and difficulty of acquisition. Kaito does not solely use its own tokens to reward creators. By participating in its ecosystem, users can also farm multiple airdrop rewards from top projects.
The other side of the wealth effect is speculation. Kaito's Yap competition indeed provides creators and content producers with motivation to create, but it has also led to a proliferation of low-quality content. Many KOLs have complained that the Twitter feed has been polluted by Yap, even claiming, "If I see one, I block one." Although Kaito is about to launch Shadow Ban to limit low-quality content, I believe Kaito should focus more on community education, continuously emphasizing the rules of Yap.
Additionally, the algorithm behind Kaito Yap is somewhat of a black box; although there are scoring standards, they are very vague. Furthermore, the current algorithm is clearly biased towards KOLs, as the measurement mechanism for Smart Followers exists, monopolizing the majority of Yap points for the core influence circle, making it very difficult for novice users to earn points. @ Tang Hua Banzhu once commented that Kaito is not a credible Twitter X evaluation system; at best, it is just a platform for KOLs to exploit. The so-called filtering of quality content has essentially turned into "to earn points, you must continuously promote popular projects on Kaito." This has also led to an excessive concentration of chips in the hands of top Yappers.
Yu Hu mentioned in an interview that his goal is to financialize everything through Kaito, allowing market forces to decide, such as users voting on which projects to launch on the Launchpad. But are market forces always correct?
KOL @Xiao Xiong Bing Gan.eth has judged that Kaito's popularity will wane. He pointed out that the voting mechanism for Kaito projects has gradually evolved into a queue for launching, leading to a lack of "bribery" motivation in the absence of survival of the fittest, causing Yap players' attention towards Kaito Launchpad projects to decline. Coupled with the current algorithm being unfriendly to retail investors, Kaito's long-term development may lack momentum.
The attention economy itself is destined to be a short-term behavior. Historical precedents tell us that once the support of fundamentals is lost, the narrative of the crypto market completely devolves into "the next better thing." Kaito may become a sustainable business model, but its true significance to the crypto market is whether it aids in short-term speculation or promotes greater interaction and consensus in the crypto market. As the wealth effect diminishes and attention shifts, how should Kaito avoid following the old path of Friend.tech and other Web3 social platforms?
Kaito founder Yu Hu has a grand ideal; he hopes that Kaito's ultimate goal is for users to forget the existence of the Yaps system, making the output of opinions a habit. Perhaps this is where the value of a product lies.
![Barnabas](https://qrc.bgstatic.com/otc/images/20241211/1733915615615.png)
Critical Analysis of $BERA : A Deep Dive into its Mechanics and Potential
$BERA is a novel Layer 1 blockchain that introduces a unique consensus mechanism called Proof of Liquidity (PoL). This mechanism aligns network security with liquidity provision, creating an efficient marketplace between validators, users, and applications. The protocol operates on a two-token model, consisting of BERA (gas and staking token) and BGT (non-transferable governance and rewards token).
At its core, Berachain's PoL mechanism fundamentally changes how Layer 1 economics are structured. Validators stake BERA to secure the network and receive BGT rewards, which they can direct to application reward vaults in exchange for protocol incentives. This system allows chain rewards to scale with actual demand for economic security and chain liquidity.
From a technical standpoint, Berachain is built using BeaconKit, achieving full EVM identicality and compatibility with standard Ethereum execution clients. The protocol supports various applications, including AMM exchanges, real-world asset tokenization, and Layer 2 solutions. The system also includes built-in safeguards against centralization through mechanisms like stake caps and concave emission scaling.
Berachain's community alignment is notable, with 48.9% of the 500 million genesis BERA supply allocated to community initiatives. The protocol features a phased governance approach through the BGT Foundation, transitioning from initial stabilization to full community control. BGT holders can influence both protocol decisions and economic incentives by delegating to validators and participating in governance proposals.
For traders and holders, understanding the utility of BERA and BGT is crucial. BERA serves as the gas and staking token for transaction fees and validator security, while BGT enables governance participation and can be earned through staking or providing liquidity. Protocols can use reward vaults to bootstrap liquidity and incentivize specific user actions, and validators can optimize returns through strategic allocation of BGT emissions.
In conclusion, Berachain's unique PoL mechanism, technical infrastructure, and community-driven governance make it an intriguing project. However, as with any investment, it is essential to conduct thorough research and consider the potential risks and rewards. For those considering holding or trading BERA and BGT, a deep understanding of the protocol's mechanics and potential use cases is critical.
🚀 $ANLOG : The Future of Blockchain Interoperability is Here
One of the most eagerly awaited token launches of the year is finally happening! $ANLOG, the native token of Analog’s Layer-0 interoperability protocol, is now live across multiple exchanges. This launch aligns with Analog’s core vision: seamless connectivity between fragmented blockchains. Whether you’re a trader, developer, or blockchain enthusiast, this is your chance to explore the power of true cross-chain interoperability.
🌉 One Token, Unlimited Possibilities
At its core, Analog’s Layer-0 network is designed to break down the barriers between isolated blockchains, allowing both tokens and data to move freely across different chains. This is made possible through its groundbreaking Timechain technology and Proof-of-Time (PoT) consensus mechanism.
🔹 How PoT Works:
Unlike traditional Proof-of-Stake (PoS) or Proof-of-Work (PoW) models, PoT uses Verifiable Delay Functions (VDFs) to establish cryptographic time guarantees, ensuring that cross-chain transactions are both secure and resistant to manipulation. This next-gen consensus mechanism is what makes Analog’s interoperability framework truly unique.
🔹 Building a Thriving Ecosystem:
A strong protocol is nothing without adoption. Analog is already making waves, with over 50 projects building on its Layer-0 framework. These span diverse sectors like AI, DeFi, gaming, and decentralized science (DeSci)—proving that Analog is much more than just another blockchain project.
🔹 Real-World Interoperability in Action:
Analog has already demonstrated its capabilities through Zenswap, a next-gen cross-chain DEX that seamlessly connects liquidity pools from multiple networks. This is just the beginning of what $ANLOG-powered interoperability can achieve.
💡 Why $ANLOG Matters
$ANLOG is more than just a token—it’s the backbone of Analog’s decentralized ecosystem.
✅ Staking & Governance: Token holders can participate in staking mechanisms to secure the network and vote on key governance proposals.
✅ Securing the Timechain: As the Layer-0 foundation of blockchain interoperability, $ANLOG plays a crucial role in maintaining a trustless, seamless data flow between different networks.
✅ Expanding Web3 Connectivity: With a rapidly growing $2 billion blockchain interoperability market, Analog is tackling one of Web3’s biggest challenges—frictionless cross-chain transactions.
🚀 The Web3 Revolution: Can Analog Deliver?
One of the biggest challenges in the blockchain space is the fragmentation of Layer-1 and Layer-2 ecosystems. As new networks emerge, liquidity and users become scattered across different chains, making interoperability solutions more crucial than ever.
🌐 How Analog Stands Out:
Unlike traditional blockchain bridges that connect only specific networks, Analog’s blockchain-agnostic architecture allows seamless integration with any existing chain—regardless of its structure.
From DeFi and AI-powered applications to memecoin ecosystems and decentralized science (DeSci), Analog’s Layer-0 protocol aims to serve as the unifying force for Web3 connectivity.
Now that $ANLOG is officially live, the world will soon witness whether Analog truly delivers on its promise of borderless blockchain interoperability.
⚡ What’s Next for $ANLOG ?
With mass adoption on the horizon, all eyes are on Analog’s expanding ecosystem and real-world use cases. Will $ANLOG emerge as the ultimate solution to Web3’s interoperability puzzle?
👉 Stay tuned, because the blockchain revolution is just getting started!
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