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Understanding the KAT Token Ecosystem

This guide introduces the KAT token ecosystem and the different token types you will encounter when participating in Katana emission voting and staking. Understanding these tokens and how they relate to each other is essential before diving into the step-by-step tutorials that follow.

Goal

By the end of this guide, you’ll understand:

  • What KAT is and its role in the Katana network
  • The three token types: KAT, vKAT, and avKAT
  • When to use each token type
  • The flows between tokens and their trade-offs

The Three Token Types

The KAT ecosystem has three distinct token types, each serving a different purpose:

KAT — The Base Token (ERC-20)

KAT is a standard ERC-20 token and the native token of the Katana Foundation. It is fungible, transferable, and can be held in any Ethereum-compatible wallet.

Property Value
Standard ERC-20
Contract 0x7f1f4b4b29f5058fa32cc7a97141b8d7e5abdc2d
Decimals 18
Transferable Yes
Voting Power None (must be staked)

On its own, KAT does not grant voting power. For the opportunity to vote on where future KAT emissions go in the Katana DeFi ecosystem, you must stake KAT into one of the two staking paths described below.

vKAT — Active Voting (Non-Transferable NFT)

When you stake KAT into the Voting Escrow contract, you receive a vKAT NFT (non-fungible token). Each vKAT represents a locked position with voting power about where to direct KAT emissions across the DeFi ecosystem.

Property Value
Standard ERC-721 (Non-transferable)
Contract 0x4d6fC15Ca6258b168225D283262743C623c13Ead
Transferable No
Voting Power Yes — scales with lock amount at a 1:1 ratio
Reward Claiming Manual
Exit 45-day cooldown (elevated fees during stabilization window, see below)

vKAT is designed for active participants who want direct control over their votes and reward preferences. Because vKAT is Non-transferable, your staked position is tied to your wallet.

Key characteristics:

  • You can hold multiple vKAT NFTs, each representing a separate lock
  • You vote directly on gauge allocations to direct KAT emissions to certain pools
  • You claim rewards manually through the Merkl distributor
  • You can set preferences for which tokens you receive as rewards
  • Exiting requires a 45-day cooldown period
  • As more relayers become available, vKAT holders will also be able to delegate their votes to a relayer instead of voting manually

avKAT — Automated Staking (ERC-4626 Vault)

Alternatively, you can deposit KAT into the avKAT vault. The vault issues avKAT tokens, a liquid, transferable ERC-4626 token representing a proportional percentage of the vault’s staked position. avKAT is the first tokenized relayer. A wrapper around delegation to a relayer that automates voting and reward compounding on your behalf. In essence, it is a permissionless wrapped vKAT token that runs a vault strategy.

Property Value
Standard ERC-4626 (Tokenized Vault)
Contract 0x7231dbaCdFc968E07656D12389AB20De82FbfCeB
Transferable Yes
Voting Power Indirect (via CompoundStrategy)
Reward Claiming Automatic
Exit Instant (sell on DEX) or 45-day (redeem as vKAT)

The vault holds a master vKAT NFT internally. A CompoundStrategy contract manages voting and reward compounding for the vault’s master position.

Key characteristics:

  • avKAT is a liquid ERC-4626 — you can transfer, trade, or use it in DeFi
  • The exchange rate between avKAT and KAT reflects accumulated rewards compounded by the vault
  • No manual voting or claiming required, the relayer handles gauge voting and reward compounding
  • You can exit instantly by selling avKAT on a DEX (subject to market liquidity)
  • Alternatively, redeem avKAT back to a vKAT NFT and go through the standard exit process

Launch Programs (Pre-TGE - Day 60)

Pre-Staking

Before TGE, you can pre-commit KAT via the relayer contract. At TGE, your commitment is auto-executed into avKAT, no manual action required after performing the approval signature. Pre-stakers receive a 3x vote boost (decaying to 1x over 8 weeks) and qualify for Founding Staker status.

See Pre-Staking KAT for the full guide.

Founding Stakers

Founding Stakers are participants who stake within 72 hours of TGE and maintain their position for 60 days. They receive a share of exit fees accumulated during the stabilization window. Two groups qualify:

  • Pre-stakers — Auto-executed via relayer (also get vote boost)
  • Early stakers — Manual stake within 72h of TGE

See Founding Stakers for eligibility details.

Vote Boost

Pre-stakers receive a temporary multiplier on voting power and rewards:

Period Boost
Day 0-14 3.0x
Day 15-28 2.5x
Day 29-42 2.0x
Day 43-56 1.5x
Day 57+ 1.0x

See Vote Boost for the complete schedule and rules.

Stabilization Window (Day 0-60)

During the first 60 days after TGE, exit fees are elevated to protect price discovery and early staker positions. The fee tapers down over time:

Period Max Exit Fee
Day 0-14 80%
Day 15-30 60%
Day 31-45 45%
Day 46-60 30%
Day 61+ (steady state discovery)

After steady state discovery, the standard exit fee schedule applies (25%-2.5% over a 45-day cooldown). See Unstake and Exit for details.

Choosing Your Path

graph TD
    KAT["KAT (ERC-20)"]
    vKAT["vKAT (Non-transferable NFT)"]
    avKAT["avKAT (ERC-4626 Vault)"]

    KAT -->|"Stake via VotingEscrow"| vKAT
    KAT -->|"Deposit into Vault"| avKAT
    vKAT -->|"Deposit NFT into Vault"| avKAT
    vKAT -->|"45-day cooldown + fee"| KAT
    avKAT -->|"Redeem as vKAT NFT"| vKAT
    avKAT -->|"Sell on DEX (instant)"| KAT
Feature vKAT (Direct) avKAT (Vault)
Token Type Non-transferable NFT Liquid ERC-4626
Transferable No Yes
Voting Manual — you choose gauges Automatic — strategy votes
Reward Claiming Manual Handled by vault
Reward Preferences Customizable Default (strategy)
Exit Speed 45-day cooldown Instant (DEX) or 45-day
Exit Fee Up to 80% during stabilization; 25%–2.5% at steady state DEX slippage or vault redeem fees
Best For Users who vote on gauges directly Users who prefer the vault interface

Choose vKAT if you want to actively participate in governance, vote on gauge allocations, and customize your reward preferences.

Choose avKAT if you want a liquid, transferable token with a vault-based staking interface.

You can always convert from vKAT to avKAT later by depositing your NFT into the vault (see Convert vKAT to avKAT).

Contract Addresses Reference

Contract Address Purpose
KAT 0x7f1f4b4b29f5058fa32cc7a97141b8d7e5abdc2d Base ERC-20 token
VotingEscrow 0x4d6fC15Ca6258b168225D283262743C623c13Ead vKAT lock management
NFT Lock 0x106F7D67Ea25Cb9eFf5064CF604ebf6259Ff296d vKAT NFT contract
avKAT Vault 0x7231dbaCdFc968E07656D12389AB20De82FbfCeB ERC-4626 vault
GaugeVoter 0x5e755A3C5dc81A79DE7a7cEF192FFA60964c9352 Gauge voting
CompoundStrategy 0x60233D1c150F9C08D886906d597aA79a205b0463 Vault reward reinvestment
Exit Queue 0x6dE9cAAb658C744aD337Ca5d92D084c97ffF578d Withdrawal queue
Merkl Distributor 0x3Ef3D8bA38EBe18DB133cEc108f4D14CE00Dd9Ae Reward distribution
Clock 0x17049d374A2bcdA70F8939C21ad92bcF6B2A95ab Epoch timing

What’s Next

Follow the tutorials in order to get hands-on experience with each part of the KAT ecosystem:

  1. Pre-Staking KAT — Commit KAT before TGE for auto-staking and vote boost
  2. Stake KAT to vKAT — Lock KAT and receive a voting NFT
  3. Deposit KAT to avKAT — Deposit into the avKAT vault
  4. Convert vKAT to avKAT — Move from direct staking to the vault
  5. Vote on Gauges — Direct incentives with your vKAT voting power
  6. Vote Boost — Understand the pre-staker vote boost schedule
  7. Claim Voting Incentives — Collect earned rewards
  8. Founding Stakers — Eligibility and exit fee distribution
  9. Unstake and Exit — Withdraw your KAT with exit fee details