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Kaito tokenomics out – concerns over insider allocations mount

Kaito AI has unveiled its tokenomics, sparking concerns over insider allocations.

Kaito AI (KAITO) has officially announced the tokenomics for its KAITO token. More than half (56.67%) of the total supply is allocated to Community and Ecosystem, according to Kaito’s official website

This 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 Binance community partnerships. 

Kaito tokenomics out - concerns over insider allocations mount - 1
Source: Kaito AI

However, some onchain analysts have raised concerns about insider allocations. RunnerXBT pointed out that 43.3% of the total supply is earmarked for insiders—35% for the team and 8.3% for early investors.

Kaito AI has been in the spotlight after it launched Yaps in Dec. 2024. Yaps is an open, permissionless protocol designed to tokenize attention, and it has already been integrated into reward distribution models and SocialFi 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.

Apart from Kaito’s tokenomics, Kaito has received criticism about its over-sensational marketing and the lowering of the quality of discussion on Crypto Twitter. “Kaito has made CT a much s******r place. Discussion quality has gone down, outrage marketing has further gone up. You can really tell which people are performing for the algorithm,” commented Hasu, Strategy Lead at Flashbots and Strategic Advisor to Lido.

This article first appeared at crypto.news

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