Kaito AI is allocating nearly 20% of its token supply for future airdrops and incentives, generating excitement as well as concern over potential tokenomics issues. The platform aims to distribute 10% of its tokens to early adopters during its first airdrop, while 56.6% overall will go to community participants. Analysts express worries about heavy allocations to insiders which may lead to significant sell-offs after the airdrop, echoing trends seen in previous airdrops.
Kaito AI, a cryptographic intelligence platform, has earmarked nearly 20% of its total token supply for upcoming airdrops and incentives. This has generated excitement among early adopters but also raised concerns regarding its economic structure, or tokenomics, particularly around potential sell-offs following the airdrops.
As part of its strategy, Kaito AI is set to distribute 10% of its total supply to initial community members during its first airdrop. This allocation will benefit members of the Kaito Yapper community, owners of Genesis NFTs, and ecosystem partners, as stated in a recent post.
A total of 56.6% of the token supply, as outlined by Kaito, will focus on community distribution, with 19.5% specifically reserved for both initial and ongoing airdrops. Industry expert Marcin Kazmierczak highlighted how Kaito AI is influencing crypto marketing by shifting the focus from mere impressions to a new measurement: Smart Followers, which gauges the engagement from reputable crypto accounts.
However, concerns have emerged regarding insider allocations, which could lead to increased selling pressure post-airdrop. Airdrop events are commonly exploited by professional airdrop hunters, resulting in significant financial gains from anticipated distributions, as witnessed with the Arbitrum airdrop in 2023.
Kazmierczak reassured that Kaito’s airdrop framework aims to deter farming through a rewards system based on collected Yaps and Genesis NFTs, making it harder for bots to exploit. Despite this, findings from onchain analysts reveal that 43.3% of Kaito’s total tokens are reserved for insiders, including 35% for team members and 8.3% for early investors.
While Kaito has yet to respond to inquiries for further clarity, analysts foresee potential volatility in the market. Experts have cautioned that the token’s release might follow a trend of initial excitement leading to significant declines, pointing to a historic pattern of airdrop hype followed by sell-offs. This sentiment follows recent reports of a substantial rise in investor interest following the Hyperliquid token airdrop in January.
