Kaito (KAITO) Tokenomics

Kaito AI is an information-focused technology company that utilizes large language models to index and organize Web3 data. Its token economics are designed to support its "InfoFi" platform, which integrates information flow, attention, and capital.

Issuance Mechanism

The KAITO token issuance is structured around a total supply of 1,000,000,000 (1 billion) tokens. The issuance follows a multi-year distribution schedule that began with a significant unlock at the Token Generation Event (TGE) on February 20, 2025.

The issuance is categorized into several key buckets, with initial liquidity provided through airdrops and community claims. Following the TGE, the protocol utilizes a combination of linear and milestone-based unlocks to release the remaining supply over several years, extending through at least 2027.

Allocation Mechanism

The KAITO token supply is distributed among eight primary stakeholder groups to balance ecosystem growth, contributor rewards, and long-term sustainability.

Usage and Incentive Mechanism

KAITO functions as the central utility and incentive token for the Kaito ecosystem, primarily through the YAPs (Tokenized Attention) system.

• Content Attribution (YAPs): Users earn YAPs by sharing crypto-related insights online. Kaito analyzes this content based on relevance, originality, and the creator's social graph. While YAPs serve as a reputation mechanism, they are the primary driver for future token rewards.
• Kaito Connect: This product acts as an incentive layer where protocols and brands can bid for audience attention. Creators produce content to align with these bids, and users vote on which brands receive visibility.
• InfoFi Integration: The token is used to align market forces between three stakeholders:
  1. Brands/Protocols: Submit bids to secure visibility.
  2. Creators: Produce high-quality content to earn incentives.
  3. Users: Engage and vote to determine content quality and reach.
• Staking and Liquidity: A portion of the supply (5%) is specifically designated to incentivize users who provide liquidity or participate in staking to secure the network's economic health.

Locking and Unlocking Mechanism

The KAITO token features a structured vesting schedule to prevent market supply shocks and ensure long-term alignment.

Initial Unlock (TGE)

On February 20, 2025, a significant portion of the supply was unlocked across all categories. Specifically, 220,000,000 tokens (22% of the total allocation) were released at genesis. This initial unlock provided the necessary circulating supply for the airdrop, community claims, and exchange liquidity.

Subsequent Unlocking Schedule

Following the TGE, the remaining tokens are subject to a cliff and subsequent monthly unlocks:

• Six-Month Cliff: After the initial TGE unlock, there is a period of lower emission. The next notable unlock phase begins around August 20, 2025.
• Monthly Linear Unlocks: Starting in late 2025, the protocol transitions to monthly releases. For example, between August and December 2025, approximately 1,660,000 tokens are unlocked monthly for each major category.
• Acceleration in 2026: The unlock rate is scheduled to increase significantly in early 2026. By February 2026, the monthly unlock amount per category rises to approximately 25,652,500 tokens, continuing at a rate of over 20,702,500 tokens per month through mid-2026.

This mechanism ensures that while early participants have immediate access to a portion of their tokens, the majority of the supply (particularly for Core Contributors and Early Backers) is released gradually over a multi-year period.