StayLoudio : a look into the new attention-speculation relationship

Context

For several months now, a consensus has been emerging around an observation shared by many analysts and projects: in the Web3 ecosystem, attention is a strategic resource. It often creates value, fuels liquidity, attracts investors, and can even, in some cases, substitute for product utility. This dynamic has given rise to a new field of InfoFi, of which Kaito is currently one of the main driving forces.

For the last few days the twitter user 0x_ultra has been teasing a new product powered by the AI engine Kaito has built. As of today, an article outlining the purpose of the protocol has been published. The goal of this analysis is to explain how it would work and how you can profit from this new platform.

A quick disclaimer before diving deeper into the LOUD token and the platform itself. It is an experiment, which aims to try new things with the engine Kaito has built. We do not endorse any tokens mentioned in this article and invite everyone to exercise caution if you decide to invest in the new token or participate by staking Kaito. OAK Research bears no responsibility for your actions.

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How Loudio works

The LOUD token

Loudio is an experimental platform that aims to push the logic of “mindshare as a value” to the extreme. The general idea is to create an incentive redistribution system, where each transaction on the LOUD token generates fees, which are fed directly into a rewards loop distributed on a weekly basis.

The LOUD token will be at the heart of the platform and will enable its users to earn yield every week, based on the reward loop presented above. There are two categories of people who will be able to receive this yield on Loudio:

• Talk about the platform to gain mindshare. Top 25 people talking about LOUD will get rewards
• Stake KAITO tokens within the Kaito staking module

The token itself does not really have a purpose besides trying to capitalize on the attention and speculation the stayloudio platform gets. The token will become available for purchase on Solana through the Meteora DEX and will collect fees in SOL for every swap you perform. The token's role is neither utilitarian nor governance. Its sole function is to generate volume, and therefore fees, which in turn become the fuel for the system described above.

Powered by Kaito

Kaito is currently one of the most advanced tools in the ecosystem for measuring the mindshare of projects, narratives, or creators. Using AI models specialized in natural language processing (NLP) and a complex social graph that emphasizes the engagement of “smart followers,” Kaito can identify, rank, and quantify the voices that matter.

This mechanism is already being used in other initiatives, such as the Yaps program or airdrop distributions in the Kaito Earn Program. Indeed, by relying on Kaito to determine mindshare scores, Loudio offloads all subjectivity, allowing it to operate without governance or manual intervention.

The top 25 mindshare holders is quite a short list for distribution, chosen on purpose to increase competition and occupy even more mindshare within the crypto twitter participants. For people reading this article, it would be quite hard to get into the top 25.

If we look at the current leaderboard, most of the leaders are well-known “Yappers”. But if you want to try and get on the leaderboard, don’t hesitate to tag our Twitter account @OAK_Res_EN in case you use any of the material provided in this article.

As the LOUD token will be launched on Solana, it is important you remember that most launches are ‘sniped’ by the bots and therefore you could lose money on your investment. Please take it into account before “Apeing” into this new initiative.

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The (3,3) model

The experiment itself originates from the (3,3) model that has been introduced in 2021. If you want to dive deeper into this model, you can check out the article we have published:

A closer look at the ve(3,3) tokenomics model in DeFi

The ve(3,3) tokenomics model has long been seen as the future of DeFi protocols. Let's take a look at the fundamental principles of ve(3,3) tokens.

The 3,3 model refers to itself as a value-accruing strategy for the store of value status of the token implementing this strategy. Here, the token is replaced by the attention the stayloudio platform and its token LOUD get.

Essentially, the goal is to create a beneficial relationship between Yappers on Kaito, KAITO stakers and speculators willing to take the risk and purchase a token.

• If more people talk about LOUD, more participants would be willing to purchase the token, betting on the increase of its price as it gets more mindshare.
• If more people speculate and you are one of the top 25 Yappers, you would receive more rewards, therefore incentivizing you to get in the top creators.

It is however important to realize that the biggest risk is transferred to the speculators as they are the ones deploying capital in the market. The Kaito stakers and Yappers are essentially receiving the rewards “risk-free”.

In the longer term, it could however evolve into a staking-based rewards system where the LOUD token gets a bigger purpose within the stayloudio platform. As the article outlining how satyloudio works states:

Loud is an experiment, and as such, mechanisms will change and adapt as time goes on based on feedback while trying to minimize intervention. We are running the first large scale decentralized experiment on attention-value systems without external influence.

The full article is available here:

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Overall thoughts

We have seen the attention economy skyrocket since the launch of Kaito. Almost every day a new SocialFi platform is launched with the likes of Cookie’s “Snaps”, Wallchain’s Quacks and the pioneer of this movement, Kaito’s “Yaps”.

So far, Kaito has clearly demonstrated its dominance and continuously high mindshare within the crypto twitter participants.

With new initiatives like Noise.xyz or Stayloud.io, Kaito continues to attract new builders and new initiatives around its attention economy. While those experiments may not last, it is interesting to follow the development of this emergent sector within the crypto ecosystem.

The platform is now live and you can check it out here: stayloud.io . In order to receive payouts in SOL, you have to connect your X account and input a Solana wallet (we highly recommend to use the same wallet that you have input on the Kaito platform).

Loudio positions itself less as a protocol and more as an experiment. Its goal is to test, over the long term, the viability of a market based solely on attention. It is not a utility platform, but rather a redistribution mechanism where the only measured resource is visibility. This makes it a unique observation ground for the ongoing evolution of InfoFi.

In the best-case scenario, Loudio could serve as a large-scale demonstration of the thesis that speculation can function as a mechanism for allocating attention and that attention itself can generate lasting value, even in the absence of a product. Conversely, if social interest collapses or the Kaito ranking is manipulated, the model could quickly run out of steam.