Elon Musk’s social media platform, X (formerly Twitter), has implemented a major policy change, banning applications that reward users for posting on the site. The move, announced by X’s head of product Nikita Bier, targets so-called “InfoFi” apps, which incentivize engagement with cryptocurrency tokens.
What are InfoFi Apps?
InfoFi stands for “Information Finance” and represents a growing trend in the Web3 space where users are financially rewarded for online activity. These apps allow developers to pay individuals in crypto for posting content or interacting with communities on platforms like X. While seemingly benign, the practice has fueled a surge in low-quality, automated posts designed solely to exploit these rewards.
The Problem: AI Spam and Degradation of User Experience
According to Bier, these reward systems led to a “tremendous amount of AI slop & reply spam” on X. Users were posting meaningless or AI-generated content specifically to earn crypto, overwhelming the platform with low-effort contributions. This harms the overall quality of the site and degrades the user experience.
“We are revising our developer API policies: We will no longer allow apps that reward users for posting on X (aka ‘infofi’).” – Nikita Bier, X Head of Product
X has already revoked API access from these apps, anticipating a reduction in spam as the incentive disappears. Bier even quipped that developers whose accounts were terminated could seek opportunities on competitor platforms like Threads and Bluesky.
Crypto Community Backlash
The decision is likely to face strong resistance from X’s active crypto community. The token for Kaito, a popular InfoFi platform, dropped over 15% immediately after Bier’s announcement. Kaito has since announced it will shut down its Yaps app, which paid users to post on X.
Why This Matters
This move reflects a broader tension between decentralized financial incentives and the need to maintain content quality on social media. X is clearly prioritizing user experience over accommodating a business model that encourages spam. The crackdown raises questions about how other platforms will manage similar challenges in the future.
The ban underscores that platforms will take action to prevent economic incentives from degrading their services, even at the expense of disrupting certain crypto-based communities.
