X Cracks Down on Crypto Incentive Models Amid Regulatory Pressure
X has abruptly severed API access for applications that financially reward users for posting content, mirroring Discord's recent enforcement actions. The MOVE targets what the industry calls InfoFi—a model blending information dissemination with tokenized incentives. Nikita Bier of X's product team framed this as a spam-reduction effort, offering displaced developers migration support to Threads or Bluesky.
The policy shift dismantles a three-layer ecosystem: engagement metrics, automated distribution tools, and crypto payouts. It arrives as X faces mounting scrutiny from EU regulators under the Digital Services Act. By attacking the economic engine behind pay-to-post schemes, the platform effectively reprices the value proposition of social media monetization in crypto.
