Platform X has revised its API rules and disallowed applications that compensate users for posting, affecting InfoFi-style services.

Policy change and rationale

X updated its API policy after detecting an increase in AI-generated spam and a deterioration in reply quality on the platform.

The company revoked API access for services operating under the InfoFi model, citing the need to limit low-quality automated contributions and misuse.

Market impact

The announcement directly affected projects built around paid-content mechanics, including KAITO, which relies on rewards for social posting activity.

Following the news, the project's token fell by approximately 17–20%, reflecting investor concern about restricted platform access.

Project response and next steps

The team behind KAITO said it will develop Kaito Studio, a separate platform enabling brands to work with creators independently from X's API.

According to the developers, this new product aims to maintain creator-brand workflows without relying on platform-provided programmatic access.

Broader implications

By limiting API usage for monetized posting models, X intends to curb automated low-quality contributions and restore reply relevance across the service.

The change may prompt other InfoFi-style operators to reassess technical dependencies and shift toward direct, platform-independent solutions for creator engagement.