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Kaito AI Unveils Tokenomics, Raises Concerns Over Insider Allocations
Kaito AI has officially announced the tokenomics for its KAITO token, sparking concerns among onchain analysts regarding insider allocations. According to Kaito’s official data, 56.67% of the total supply is allocated to Community and Ecosystem.
Tokenomics Breakdown
The distribution includes 19.5% set aside for airdrops and incentives, 32.2% for ecosystem expansion, 10% for early community rewards, and 7.5% for long-term creator incentives. Additionally, 5% of the supply will go toward liquidity incentives, while 10% is reserved for the Foundation to ensure sustainable development.
The remaining distribution includes 25% for core contributors, 8.3% for early backers, and 2% dedicated to community partnerships.
Concerns Over Insider Allocations
Some onchain analysts have raised concerns about insider allocations, citing that 43.3% of the total supply is earmarked for insiders. This includes 35% for the team and 8.3% for early investors.
RunnerXBT, an onchain analyst, pointed out that the team and early investors are allocated a significant portion of the total supply, which has raised concerns about the token’s distribution.
“so $KAITO is 35% team (25% core contributors + foundation = same thing) 8.3% VCs (at $87.5m valuation – at $1b are up 10x+) read as = 43.3% insiders 10% airdrop 2% Binance “listing fee” not sure how I feel about this but OTC market was probably right about $20 yaps”
Kaito AI’s Ecosystem and Token Role
Kaito AI has been in the spotlight after launching Yaps in December 2024. Yaps is an open, permissionless protocol designed to tokenize attention, and it has already been integrated into reward distribution models and social innovations.
The KAITO token plays a key role in Kaito’s ecosystem, helping shape the flow of attention within its “InfoFi” framework—Kaito’s concept of making information measurable and tradable using AI.
Criticism Over Marketing and Discussion Quality
Aside from tokenomics, Kaito has received criticism about its over-sensational marketing and the lowering of the quality of discussion on Crypto Twitter. Hasu, Strategy Lead at Flashbots and Strategic Advisor to Lido, commented on the matter:
“Kaito has made CT a much worse place. Discussion quality has gone down, outrage marketing has further gone up. You can really tell which people are performing for the algorithm.”
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