#explain-card [[InfoFi]], which stands for "Information Finance," is an emerging concept in the [[Web3]] domain that blends information management with decentralized token economics. It leverages blockchain technology to create a system where data is quantified and traded as an asset. Essentially, InfoFi focuses on redistributing digital attention more transparently and efficiently, enabling users to control and monetize their information. This approach aims to reduce dependency on centralized platforms like traditional social media and search engines. A prominent example of InfoFi in action is the [[Kaito]] AI platform, which has gained attention in the Web3 space as of February 20, 2025. Kaito uses AI to aggregate and analyze data from thousands of Web3 sources—such as social media, research papers, and on-chain activities—making it searchable and actionable for users. Its native token, `$KAITO`, launched around mid-February 2025, powers what Kaito calls an "attention economy." Token holders can influence how attention is directed within the ecosystem, while contributors of quality content or data are rewarded with tokens. Kaito’s "Yaps" protocol, introduced in December 2024, further exemplifies InfoFi by tokenizing user attention on platforms like X, allowing participants to earn rewards for engagement and content creation. The broader vision of InfoFi is to create a marketplace where information efficiency is enhanced, and users—not corporations—benefit from the value generated by their data and attention. This could transform how Web3 communities operate, enabling smarter decision-making, reducing noise in the crypto space, and fostering a more equitable distribution of influence. However, the concept is still in its early stages, and its success depends on overcoming challenges like scalability, user adoption, and ensuring genuine decentralization, as some critics argue that token-based systems can still concentre power among early adopters or large holders.