WayneXiao

1. Project Overview
Nillion ($NIL) is a blockchain project focused on privacy computing, with its core innovation in "Blind Computing" technology. Unlike traditional blockchains that primarily solve transaction decentralization, Nillion aims to achieve decentralization of sensitive data processing1. The project recently secured $25 million in funding led by Hack VC7, demonstrating investor confidence in its technological approach.

2. Technical Analysis
2.1 Blind Computing Technology
Nillion's blind computing technology is its biggest highlight, allowing computational processing of sensitive information without decrypting the data8. This means:
Data remains encrypted during storage and processingData content is invisible to network nodes and processorsOnly computation results can be accessed by authorized parties
2.2 Comparison with Traditional Privacy Technologies
Compared to traditional privacy computing technologies:
Comparison with Multi-Party Computation (MPC): Nillion's technology is based on MPC but has made significant innovations, providing more efficient performance and better scalabilityComparison with Zero-Knowledge Proofs: Zero-knowledge proofs mainly focus on information verification, while Nillion's blind computing focuses more on data encryption and computation10Decentralized Architecture: Computational tasks are coordinated and executed through a distributed node network, enhancing the system's censorship resistance and security

3. Token Economic
Token Name: Nillion (NIL) Total Token Supply: 1,000,000,000 NIL Max Token Supply: Non-capped (Inflation set at 1% yearly, based on emission type and subject to governance)Launchpool Token Rewards: 35,000,000 NIL (3.5% of total token supply)An additional 25,000,000 NIL will be allocated to the other marketing campaigns 6 months after spot listing. Initial Circulating Supply When Listed on Binance: 195,150,000 NIL (19.52% of total token supply)
4. Token Utility Mechanisms
NIL tokens have multiple utilities within the Nillion network, forming a complete token economic model210:
4.1 Network Usage & Payments
Computation Fee Payment: Users pay for blind computing services using NILData Storage Fees: Used to pay for storing encrypted data on the networkNetwork Transaction Fees: All network transactions require NIL as a fee
4.2 Network Security & Validation
Validator Staking: Node operators need to stake NIL to become network validators11Delegated Staking: Token holders can delegate NIL to validators, sharing network security rewardsSecurity Incentives: Stakers receive network rewards based on their contributions, derived from newly minted tokens and network fees
4.3 Governance Rights
Governance Proposals: Token holders can submit network improvement proposalsVoting Weight: Voting power is proportional to the amount of NIL held/stakedParameter Adjustments: The community can decide on key network parameters through governance, such as fee structures and reward distribution
4.4 Ecosystem Incentives
Developer Rewards: Incentivizing developers to build applications on the Nillion platformEcosystem Fund: Supporting strategic partnerships and marketing activities for ecosystem growthCommunity Incentives: Rewarding community contributors for participating in testing, promotion, and network improvements

5. Economic Model Sustainability
Nillion's token economic model design considers long-term sustainable development:
5.1 Inflation Control Mechanisms
Preset Inflation Cap: Annual 1% inflation cap ensures long-term stability of token valueUsage-Based Adjustment: Emission rate can be adjusted according to network usagePartial Fee Burning: Considering implementing a partial network fee burning mechanism to balance inflation
5.2 Value Capture
Usage-Driven Demand: As demand for blind computing and private data processing increases, NIL demand correspondingly risesStaking Lock-in Effect: Staking mechanism reduces market circulation, balancing supply and demandValue Accumulation Cycle: Network usage → Fee payment → Token demand → Value growth → Enhanced network security → More users

6. Price Prediction on Launch Day
Given Nillion’s token design, low initial circulating supply, and support from top-tier trading platforms, its market performance on launch day is of particular interest. In this phase, the price is influenced by multiple factors:
5.1 Analysis of Price Driving Factors
The diagram below illustrates the four major factors affecting the price on launch day:

Explanation:
Exchange Effects: Support from top-tier platforms (e.g., Binance Launchpool) can significantly boost token attention and trading volume in the short term.Technological Narrative: The uniqueness of blind computation attracts both technical experts and industries with high privacy demands.Market Sentiment: The current crypto privacy sector is receiving broad market attention, generally leading to strong performance by related projects.Limited Circulation: The extremely low initial supply (5%) tends to create a supply squeeze in the short term, pushing prices upward.
5.2 Quantitative Prediction and Risk Warning
Based on available data and a benchmarking method comparing circulating market values, reference projects include Oasis Network, Secret Network, and the industry average. The table below illustrates the analysis:

Considering the initial issuance price of 0.4 USD, the price on launch day is predicted to reach between 0.8 and 1.2 USD—representing a rise of 100% to 200%. 

Part 1：KAITO Product Overview
KAITO is an AI-driven platform focused on providing users with comprehensive information in the cryptocurrency and Web3 sectors. It helps users quickly access market trends and project insights by aggregating content from social media, forums, and research papers.
Its core features include:
1.1 Yaps Points System
Yaps (Yet Another Points System) is an innovative feature of KAITO that rewards users for publishing quality crypto-related content on X. Users need to connect their X accounts through KAITO Connect, post cryptocurrency-related content, and KAITO uses AI to evaluate its relevance and quality, distributing points based on interactions and reputation. These points are used for ranking on the Yapper Leaderboard, divided into time periods such as 7 days, 30 days, etc., encouraging continuous participation.
Research shows that the algorithm considers content relevance (detecting keywords through NLP), quality (LLM assessment of insights and originality), and engagement (weighted based on the reputation of those who interact). For example, CoinGecko's article about KAITO mentions that points are based on volume, engagement, and semantics.
An unexpected detail is that some projects like Quai Network offer token rewards to high-ranking users. For instance, "Earn Quai Through KAITO's Yapper Leaderboards" mentions 6 million Quai tokens as rewards, distributed across general and project-specific leaderboards.
1.2 Yapper Leaderboard
The Yapper Leaderboard ranks the top 100 users by time periods, including 7 days (7D), 30 days (30D), 3 months (3M), 6 months (6M), and 12 months (12M). Rankings are based on Yaps points and provide Yapper Mindshare and heat map features, displaying user influence and point changes.
Gameplay includes competitive ranking, encouraging users to strive for higher positions by publishing content and increasing engagement. Evidence shows that leaderboards not only provide social proof but may also be linked to project rewards, such as Quai Network's token incentives.
1.3 KAITO Connect
KAITO Connect allows users to connect their X accounts to participate in the Yaps points program. After connecting, KAITO synchronizes users' X activities in real-time, evaluates post relevance and quality, and allocates points. Users can view point updates and leaderboard rankings, enhancing the sense of participation.
Research indicates that the connection process includes account verification and data synchronization, supporting multiple languages to ensure global user participation. For example, the Yaps FAQ provides detailed guidelines.
1.4 Yapper Launchpad
Yapper Launchpad is a community voting mechanism that selects three crypto projects each week to be launched on the Yapper Leaderboard. Users can vote using Yaps points, Smart Followers, Genesis NFTs, and sKAITO, with voting cycles on Mondays, Wednesdays, and Fridays.
Selected projects benefit from increased community visibility. For example, Tabichain joining the Launchpad was seen as a milestone for its TGE (Token Generation Event), with "Tabichain joins Yapper Launchpad" mentioning its growth path.

The 4 core features is designed to involve four key participants which are creators, users, brands, and networks/platforms. As can be seen in the image below, the Kaito Network aims to fairly distribute rewards to these four categories. 

The KAITO platform serves as a central hub for Web3 content and social ecosystem, connecting three core participants in a value circulation system: Projects pay sponsorship fees to KAITO to obtain data analysis and project exposure; The KAITO platform incentivizes KOL creators through Yap points, airdrop rewards, and leaderboard visibility; KOLs participate in ecosystem governance by staking platform tokens and voting for projects, while creating high-quality content to attract ordinary users; Regular users (represented as X in the diagram) act as content consumers and data providers, offering exposure and promotional value to projects. This ultimately forms a self-reinforcing, mutually beneficial ecosystem where value efficiently flows and appreciates among all participants.

Part 2：Yaps Points System

Yaps is a points system within the KAITO project that rewards users for publishing high-quality crypto-related content on X.
2.1 Algorithm Mechanism
The working logic of the Yaps algorithm can be divided into the following steps:
1. User Connection and Content Publishing
Users need to connect their X accounts through the KAITO Connect feature. This process is typically completed through KAITO's user interface, where users authorize KAITO to access their X posts and interaction data.
Users publish crypto-related posts on X, which may include market analysis, project updates, or community discussions.
2. Content Relevance and Quality Assessment
Relevance Assessment: KAITO uses Natural Language Processing (NLP) technology to identify keywords, entities, and topics in posts, ensuring the content is related to cryptocurrency. For example, the system may detect terms like "Bitcoin," "Ethereum," or "DeFi," and classify posts through topic modeling (such as Latent Dirichlet Allocation, LDA).
Quality Assessment: Evidence shows that KAITO relies on Large Language Models (LLM) to evaluate post quality, considering its insight, originality, and focus. LLMs can understand complex language, exclude low-quality content such as spam, and assess the analytical depth of posts. For instance, the system may prioritize posts providing market trend analysis over simple price updates.
Language Support: The algorithm supports multiple languages, not limited to English, ensuring fair participation for global users.
3. Engagement and Reputation Weighting
The algorithm analyzes post interactions, including likes, retweets, and replies. Research indicates that interactions are not simply counted but weighted according to the reputation of those who interact.
Reputation may be based on the interactor's Yaps points. In other words, users with high Yaps points (such as top-ranked Yappers) contribute more points to post interactions.
This mechanism aims to reward meaningful community interactions and prevent low-quality accounts from benefiting through volume manipulation. For example, the system may set a minimum threshold for total interaction scores; if not reached, the post may not receive points.
4. Points Distribution
If a post passes the content assessment and the total interaction score reaches the threshold, users will receive Yaps points.
After points are distributed, users can view their rankings on the Yapper Leaderboard, divided into time periods such as 7 days, 30 days, etc., encouraging continuous participation.

2.2 Algorithm Fairness and Anti-Cheating Measures
KAITO claims that Yaps points are not easily manipulated and has implemented several measures to ensure system fairness:
Algorithm-based Muting and Penalties: According to an announcement by KAITO AI founder Yu Hu, the platform plans to introduce algorithm-based "shadow banning," increasing the cost for low-quality interactive content, ensuring sustainable creator income.LLM Filtering: LLMs can identify and exclude spam or low-effort content, maintaining community quality.Reputation Weighting: By weighting interactions based on reputation, the system reduces the influence of low-quality accounts on point distribution.
2.3 Potential Controversies and Challenges
Despite the Yaps algorithm's design aiming to be fair, some controversies exist:
Fairness Disputes: Some users may question whether high-reputation users are weighted too heavily, concerned that ordinary users will struggle to compete.Technical Complexity: The AI evaluation logic may be difficult for non-technical users to understand, affecting participation rates.
2.4 Conclusion
The Yaps algorithm is a core mechanism in the KAITO project for incentivizing user participation in the crypto community, evaluating content relevance and quality through AI, and distributing points based on reputation-weighted interactions. Despite fairness and privacy controversies, the algorithm has successfully attracted a large number of users through its gamification design and anti-cheating measures.

Part 3：Yapper Leaderboard

Yapper Leaderboard is a gamification feature that ranks users based on their activities on X, particularly their influence and contributions in the crypto community. Since its launch, the leaderboard has expanded to include both general crypto community and project-specific leaderboards, attracting widespread user participation.
3.1 Leaderboard Rankings
KAITO's ranking system consists of two distinct mechanisms:
General Crypto Leaderboard: This system ranks users based on their Yaps points, which are earned through broader Crypto Twitter (CT) activity. These points reflect a user's overall contribution and influence within the general crypto community.
Project-Specific Leaderboards: These measure a yapper's contribution specifically to a designated project's Mindshare. Importantly, the algorithm for these project-specific leaderboards operates independently from the general Yaps points system.
It's worth noting that appearing on a project-specific leaderboard doesn't automatically guarantee earning Yaps points in the general system, and vice versa. A user's ranking on project-specific leaderboards is not determined by their accumulated Yaps points but rather by their specific contributions to that project's community
3.2 Project-Specific Leaderboards
In addition to the general crypto community leaderboard, KAITO also launches Yapper Leaderboards for specific projects. For example, Quai Network partnered with KAITO to provide a Quai-Specific Leaderboard, where users earn rankings and rewards by posting Quai-related content.
Project Rewards: As mentioned in "Earn Quai Through KAITO's Yapper Leaderboards," Quai Network offers 6 million Quai tokens as rewards, distributed across general and project-specific leaderboards.Ranking Logic: The algorithm for project-specific leaderboards is independent of Yaps points, based on contributions to that project. AI analyzes whether posts are project-related and evaluates their quality and engagement.
3.3 User Experience and Participation Strategies
For users, participating in KAITO leaderboards includes:
Registration and Connection: Connecting X accounts through KAITO Connect to ensure activities are tracked.Content Creation: Publishing high-quality crypto-related content, aiming for high engagement to earn more points.Checking Rankings: Regularly viewing the leaderboard, analyzing one's ranking across different time periods, and adjusting strategies to improve.Competition and Rewards: Gaining community recognition by appearing on the leaderboard, potentially earning project rewards like Quai tokens.
For the platform, the leaderboard incentivizes continued user participation through gamification design, enhancing community stickiness. For example, the heat map feature highlights point changes, motivating users to strive for improvement.
3.4 Conclusion
KAITO's leaderboard gameplay incentivizes user participation in the crypto community through connecting X accounts, publishing content to earn Yaps points, and competing for rankings. Whether general or project-specific leaderboards, they all enhance user experience through AI evaluation and gamification design. Despite fairness and privacy controversies, the leaderboard remains an important tool for KAITO to attract and retain users.
Part 4：Yapper Launchpad

Yapper Launchpad is a community voting mechanism where users can vote for their favorite crypto projects, selecting three projects each week to be launched on KAITO's Yapper Leaderboard.
Who can vote: All Yappers (including users who haven't earned Yaps points) as well as users holding Genesis NFTs and sKAITO (staked KAITO) can vote.Voting method: Users can vote using their Yaps points, Smart Followers, Genesis NFTs, or sKAITO. Voting cycles are on Mondays, Wednesdays, and Fridays.Voting results: At the end of each voting cycle, the projects with the highest votes will launch their own Yapper Leaderboard 7 days later.
4.1 Project Benefits and Ecosystem Impact
Selected projects will gain significant community visibility, typically occurring before a project's Token Generation Event (TGE). For example, Tabichain joining Yapper Launchpad was considered an important milestone in its growth path, aimed at enhancing the visibility of its governance token TABI's TGE. Specific benefits include:
Yapper Leaderboard Launch: Projects will have their own Yapper Leaderboard, allowing Yappers to earn Yaps points by posting relevant content on X, thereby increasing community discussion and project exposure.Community Support: Through the voting mechanism, projects can attract attention and participation from more early community members, enhancing their influence in the crypto community.Market Visibility: Yapper Launchpad provides a prestigious launch showcase platform, giving projects momentum within the crypto community.
4.2 User Experience and Participation Strategies
For users, participating in Yapper Launchpad involves the following steps:
Registration and Connection: Users need to register as Yappers and connect their X accounts in KAITO Connect to ensure their activities can be tracked and evaluated.
Earning Yaps Points: Earn Yaps points by publishing high-quality crypto-related content on X, which can be used for voting.Voting Selection: During the weekly voting period, choose projects to support using Yaps points, Smart Followers, Genesis NFTs, or sKAITO.Tracking Results: View voting results to learn which projects have been selected for the next week's Yapper Leaderboard launch.
For projects, strategies include:
Application: Projects need to apply to become candidates for Yapper Launchpad.Community Mobilization: Mobilize Yappers and token holders to vote for the project through social media and community events.Leveraging Leaderboard: Once selected, utilize the Yapper Leaderboard to encourage community discussion and enhance project exposure.
4.3 Conclusion
Yapper Launchpad is an innovative community-driven mechanism on the KAITO platform, selecting three crypto projects each week through voting and giving them the opportunity to launch on the Yapper Leaderboard. This gameplay not only incentivizes user participation but also provides an important exposure platform for projects. Despite some controversies, such as the definition of Smart Followers and the fairness of voting power distribution, KAITO ensures broad community participation through various voting methods.

Part 5: How to Earn Yaps
Now, let's look at how to earn Yap points for sharing information.
Step 1: Sign In to Kaito
Firstly, go to Kaito‘s website and Sign In.

You will be prompted to connect your X (Twitter) account as the only option.

In the next window, Authorize app to give Kaito Yaps access to your account. 

You can then see a brief introduction to Yap Points which shows you the three different dimensions of the points program. As mentioned above, these include volume, engagement, and semantics.
After you have read through this, you can proceed to Become A Yapper.

Once certified, you will be shown some basic statistics about your X account which includes how many smart followers you have, who are the top smart followers, and even view a web of connected accounts. 
Before you can continue, you will need to Start Yapping which will open your X account with a pre-written post.

You can then post the pre-written post which will also include your referral link.

After that you will be able to Continue and Join the Kaito Connect waitlist.

This will give you an Early Bird badge which will likely be used in the Kaito Connect program in the future. 

Step 2: Input Your Wallet
You should be redirected to your account’s dashboard after claiming your Early Bird badge. If not, you can also go to kaito 'website to view it. 
Here you can Input Your Wallet. 

You will need to enter both an Ethereum and Solana wallet address to Confirm. If you are using a wallet that supports both chains, like Phantom, then you can easily copy your chain-specific wallet addresses from there.

Step 3: Start Yapping
You will need to start posting on your X account in order to earn points. If you feel unsure about what to post, we recommend looking through accounts listed on the leaderboards to see the type of content and engagement they are posting. 
If you are looking for materials, we suggest that you take the opportunity to read up on whitepapers, research documents, blog posts, and even X posts from different projects. You can also look through the vast articles and reports we have available on CoinGecko. 
Spamming the word ‘crypto’ in your posts and tagging Kaito at every opportunity will not increase your points.

Conclusion
Kaito.ai is introducing an AI-powered search engine to index a wide range of Web3 sources including social media, forums, research papers, and more in an effort to solve the information fragmentation issue in the crypto space.