The Loud Experiment

Breaking down the Loud Experiment

darwizzynft

Posted on Jun 3, 2025

Been active on CT the last few days?

Then you’ve probably come across Loud! (aka stayloudio)

well, at least 72% of you

It’s “Powered by Kaito AI”

And EVERYONE, and I mean EVERYONE is talking about it.

Many think Loud is great (especially if they made the Top 1000)

Others argue that it’s everything wrong with CT right now.

So as always, let’s break it down!

What is Loud?

It’s an experiment. One that blends trading with attention rewards.

Every week, trading volume generates swap fees that form a reward pool.

Who gets those rewards? The top contributors to Loud’s mindshare.

Loud combines two core mechanisms, inspired by two existing products:

Mindshare-based rewards inspired by Kaito

people earn based on how much attention they generate.

Creator-aligned fee model inspired by BelieveApp

creators are rewarded directly through transaction fees.

Loud attempts to extract the best of both systems and create a never-ending game that aligns incentives to maximise mindshare and outcome for token holders, forever.

The Experiment

“What happens when you reward people for talking about a coin…forever?”

That’s the question the Loud experiment asks.

But how does that work in practice?

Traders generate fees → fees form reward pools → rewards distributed weekly

Let’s go through it step-by-step:

Traders generate fees

Traders pay a small fee every time they swap $LOUD.

Fees form reward pools

That fee goes into a reward pool (essentially creating a pot of money)

Rewards distributed weekly to Top 25 Yappers

Users create posts on X to gain mindshare

Once a week, the reward pot is paid out to the Top 25 contributors to Loud’s mindshare

~20% of the pot goes to $KAITO stakers to maintain attention

Users can check rankings on the Loud website

💡

Loud is powered by Kaito. Mindshare rankings are tracked using Kaito’s feeds.

The result?

A “never-ending” flywheel where:

Speculators fund attention.

Yappers (creators/KOLs) compete to earn

And all of this… without a product in the middle. Just pure vibes.

aesthetically pleasing flywheel

Why only the Top 25?

Simply to incentivise Yappers to work harder for the mindshare rewards.

Even those in the Top 25 aren’t safe, as rewards depends on the % of mindshare they own.

But after Loud’s founder Ultra initially shared this information, many were left frustrated.

Why?

“Only the Top 25 get rewards. What about everyone else?”

Loud listened.

Initial Attention Offering

Loud published an article and addressed the concerns of the community.

“The Loud leaderboard can feel like a big yappers only game, for this reason it's important to give a piece of the experiment to everyone that made it possible: the Loud and Kaito communities. Everyone should own a part of the experiment.”

But how could they include everyone else?

Enter “Initial Attention Offering”

The $LOUD IAO had 2 phases:

Phase 1 — Priority Access (Guaranteed)

Reserved for:

Top 1,000 $LOUD Yappers

Participants had exclusive access during the first two hours

Phase 2 — Community Access (FCFS)

Open to: - All @KaitoAI users with a linked Solana address and 10+ smart followers

The IAO took place on @HoloworldAI’s HoloLaunch launchpad

Here’s how it was structured:

Goal: ~$70,000 (400 $SOL) for 45% of the $LOUD supply.

Phase 1 (Guaranteed)

0.2 $SOL contribution

1,000 whitelisted wallets

Duration: 2 hours

Phase 2 (FCFS)

0.2 $SOL contribution

~120,000 whitelisted wallets

Phase 1 wallets weren’t able to join Phase 2.

$LOUD Tokenomics

Total Supply: 1,000,000,000 $LOUD

45% (450M) — IAO

45% (450M) — Initial liquidity pool

10% (100M) — Community initiatives & market makers

Now that $LOUD has TGE’d; the flywheel is in full effect.

How did CT react?

Mixed feelings it’s the best way to describe it.

The timeline was flooded — and I mean COMPLETELY flooded by “Loudio”.

Many took the opportunity and got involved, creating posts and screaming “Loudio”.

However, some quickly became annoyed by the Loudio spam, and it sparked a lot of discussion.

Pro-Loud CT sentiment:

Loud is a great opportunity to make money for both big/small accounts

Only in Crypto can you get the chance to make $3K just from tweeting a few times

“You pick up money from the floor”

Anti-Loud CT sentiment:

Participating in Loud ruins reputations/brands

KOLs are farming their audience for Loud rewards

Loud has done more damage than good to CT and the creator economy

In the end, most came to agree that if you have the chance to make $3K, you should take it, especially if all you have to do is tweet for a few days.

Loads of smaller accounts got into the Top 1000 and made money, and when you understand the value of $3K, no matter what economy or country you’re living in — it’s a LOT.

The difference it can make in someone’s life cannot go understated.

Having said that, a lot of creators used interesting methods to gain mindshare.

Some offered their audience a cut of their $LOUD allocation, or a “smart” follow back.

Game is game though I guess…

What’s Next?

A true experiment is usually carried out without knowing what the outcome will be.

That’s the case with Loud.

Everything that’s happened up until this point has been in the hands of the people.

No one knows what to expect.

The $LOUD token is currently on a downward spiral.

Many see it as the end of the Loud experiment, whilst others see it as a buying opportunity.

There is no roadmap. The token itself has no utility (at least at the time of writing).

The truth is, nobody knows what’s going to happen next.

But what’s for certain is that there is a LOT to learn and take from the Loud experiment.

Expect to see more teams use IAO as a distribution mechanism.

As for InfoFi? Is this just the beginning? Or the beginning of the end?

I guess we’ll find out in due time.

💡

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Disclaimer: The information provided in this article is NOT financial advice and has ONLY been presented for informational and educational purposes