Analyzing STAY LOUDIO: Who will come out on top in the Web3 attention economy?

Original Author: Castle Labs

*Compiled | Odaily Planet Daily (@OdailyChina) *

Translator | Ethan (@ethanzhang_web3)

Translator's Note: In the Web3 world, nothing is scarcer and more real than "attention" — you might not study the white papers in detail, but you will definitely notice the current hot topics amidst the bombardment on social media.

This article is an open letter written for crypto Twitter, and it also resembles an experimental memorandum on "decentralized chatterbox economics". It is about the new narrative driven by emotions and the emerging paradigm shift in attention commercialization.

We should rethink how to evaluate "influence" in the Web3 world? After all, KOLs, COLs, project parties, creators, and even bystanders are all being drawn into this power struggle of discourse.

With a touch of mystery and in-depth research on "viral epidemiology," @0x_ultra has led the crypto Twitter community to frequently discuss @stayLoudio. As of now, Loudio has captured over 70% of the "mind share" in English crypto Twitter.

This phenomenon perfectly aligns with the evolving trend of the roles of attention and mental share in today's narratives, which I have touched upon in the article I wrote for Kaito.

In short, Kaito has reshaped the way protocols connect with KOLs to enhance brand awareness and expand the distribution capabilities of crypto Twitter. We all know that the KOL space has long been manipulated: a few large accounts hold the "ticket" to content distribution.

At the same time, many KOLs use bots and fake interactions to "boost data." Projects often spend money but fail to gain genuine attention.

Kaito effectively decentralizes the attention market, turning "attention" into a quantifiable commodity through a universal reputation system.

This system can also serve as a screening mechanism, ranking KOLs based on the number of smart fans and their actual contributions. In that article, I predicted that the attention structure would shift from KOLs to COLs.

Through Kaito, the protocol can bypass marketing and KOL intermediaries, rewarding based on community contributions.

Loudio goes a step further and becomes a new experiment in attention and user interaction. It integrates the following elements:

• @KaitoAI: Attention Economy Model
• @Believeapp: A distribution platform aligned with the interests of creators.

One of the most appealing aspects of this project is that it borrows the "3, 3" mechanism initiated by OlympusDAO, but applies it to the dimension of reputation: connecting those who need interaction and content with KOLs and louders.

The "3, 3" here should not only be understood in the traditional way, but also implies a non-traditional louders collaboration mechanism. To maintain a leading position on the leaderboard, they may need to form alliances, create secondary markets, and share profits with community members, achieving collaborative combat.

Loudio has more social attributes compared to Olympus: you might sell your OHM, but what if you are betting your reputation?

For KOLs, your "value" is your "reputation."

Loudio expands on Kaito to create a new social contract framework where KOLs can monetize their attention and earn rewards by constantly competing for the top spot on the leaderboard.

Without further ado, below is the basic architecture diagram of the Loudio system:

How does the LOUD flywheel mechanism operate?

• Each LOUD token swap incurs a 4% fee;
• Weekly transaction fees are deposited in SOL into the "Mindshare Pool", distributed proportionally among the top 25 contributors;
• 18% of the transaction fees are allocated to KAITO stakers;
• The stringent selection threshold for the top 25 is intentional, aimed at incentivizing loyalty, content quality, and competitive drive.

This "gamification" mechanism is crucial: Users are incentivized to make as much noise as possible to compete for the most attention, thereby earning a ticket to the Mindshare reward pool.

The LOUD token should not be "overanalyzed" by crypto analysts on X. As Ultra mentioned, it should be seen as a tool for measuring and pricing attention.

Loudio will officially launch tomorrow on the @HoloworldAI Launchpad.

Team to Watch:

One of the key figures of Loudio, Slayed, is also a co-founder:

Loudio Player's Manual

Why is Loudio becoming popular?

• Hitting the Deep Emotions of Human Nature: Am I really as cool as I think I am? Can I break into the top 25 by tweeting? This is basically the "ultimate narcissism test" for KOLs. Having big influencers personally compete for attention resources is no joke. This has been instrumental for Loudio in achieving its current level of attention.
• Limited Information, Speculation Arises: Not many details have been disclosed, leading everyone to start wildly guessing. This uncertainty has instead sparked a fervor for discussion. The community trusts Ultra, believes in the narrative, and also trusts the bond with Kaito.
• Extremely Simple Mechanism: Completely uncomplicated. People only need to "babble" to communicate, without the need to mine or engage in other operations.
• Riding the Wind of Kaito: How should project parties utilize Kaito? It is still not entirely clear, while Loudio is among the first to experience it, enjoying "early bird benefits," market curiosity, and potential value. If it succeeds, Kaito will establish its position as an infrastructure and analytical component, not only for Web3 but even expandable to broader fields.

Kaito is continuously reaping the fruits of victory:

If Loudio is successful, a form similar to "Initial Attention Offering" may become the 2025 version of ICO (Initial Coin Offering). This could be one of the explosive points of future new narratives: (@beast_ico's views are very insightful)

So... will Kaito launch its own IAO Launchpad?

Hidden Concerns and Reflections

When Kaito and Loudio are fully operational, is our timeline filled with noise? Is it true that whoever pays more gets to be forwarded and followed?

Kaito has restructured the attention distribution model, becoming the "most efficient" distribution mechanism per dollar, accelerating the trend of attention transfer and information flow "overloading".

But at the same time, don't hate the players, hate the game itself.

Social media has undergone tremendous changes due to various nested monetization mechanisms, and this path will clearly continue to move forward.

However, this will eventually reach the "inflation threshold" of attention.

What will social platforms do at that time?

• Will it actively filter out this noise?
• Will it still exacerbate the chaos with thousands of AI accounts?

These are all worth our deep reflection.

Another Concern: Is Loudio Unfriendly to "Small Accounts"?

Loudio is essentially an "attention market". Project teams want to find top accounts to endorse them.

No one cares about the long tweet posted by Francescoweb3. They just want @beast_ico and @blknoiz06 to speak up.

Is there still a chance for small and medium accounts?

The answer is: They might be able to participate in the following ways:

• Earn commission share from creators
• Receive airdrop from the project party
• Participate in community-led third-party markets, etc.

Otherwise, relying on them to break into the top 25 on the leaderboard is indeed unrealistic.

This point has been somewhat alleviated in the broader participation threshold of IAO.

Summary

What is Loudio's ultimate form? We still need to wait for the bullets to fly for a while.