X has moved to curb a surge in AI generated reply spam by revising its developer API rules to prohibit platforms that reward users for posting content, a decision that has drawn widespread support from users frustrated by declining content quality. The update blocks apps from distributing tokens, points, or cash in exchange for engagement, effectively shutting down a controversial model that had gained traction within crypto focused communities. The change has already resulted in revoked API access for several projects and has forced others to suspend operations. While X stated it remains open to crypto and web3 developers, the company drew a clear boundary against incentivized posting, which critics argue encouraged low effort replies and automated spam. Many users welcomed the move, describing AI driven engagement farming as a persistent nuisance that crowded out meaningful discussion and degraded timelines.
The policy shift has had an immediate impact on InfoFi platforms, which attempted to turn social media activity into a financial market by rewarding users for amplifying content. High profile projects such as Kaito and Cookie announced plans to sunset or pivot their existing models following the announcement. Token prices tied to these platforms fell sharply as investors reassessed their viability under the new rules. Industry voices across crypto and traditional finance praised the crackdown, arguing that monetized posting combined with AI tools inevitably produced noise rather than insight. Some builders acknowledged that while the original idea aimed to surface valuable information, it ultimately incentivized volume over quality, leading to repetitive and automated replies that overwhelmed organic conversation.
Debate continues over whether the move is primarily about improving discourse or asserting greater control over monetization on X. Critics point out that the platform itself still rewards engagement through creator payouts, potentially sustaining similar incentives that drive spam. Others argue the decision reflects growing recognition that unchecked financial rewards distort online behavior, especially when paired with AI generated content. As InfoFi projects search for alternative models and X prepares further updates to its developer ecosystem, the episode highlights broader tensions around attention economics, automation, and quality control in digital platforms. The crackdown suggests a shift away from experimental engagement markets toward more curated and permissioned approaches, as platforms attempt to balance innovation with sustainable user experience.
