X users celebrate crackdown on ‘plague’ of AI-led reply spam as InfoFi platforms seek alternatives

X has updated its developer API policies to prohibit apps from distributing tokens, points, or cash for user engagement, directly targeting the controversial InfoFi (information finance) model that incentivizes posting and content amplification. This move is widely celebrated by users, including figures like Y Combinator founder Paul Graham, who called AI-generated replies a "plague," as it aims to curb the flood of low-effort, bot-driven spam on the platform. The crackdown has immediately impacted InfoFi projects; Kaito, which rewards users for amplifying trending topics, saw its token plummet and announced it would shift to a traditional influencer-marketing model, while Cookie DAO decided to sunset its platform. Critics argue that X's action might also be a move to assert control over monetization, especially since X itself compensates creators based on engagement. However, some builders believe that as long as X incentivizes engagement financially, users will continue to generate spam, regardless of the InfoFi ecosystem's fate.

(Source：The Block)