> For the complete documentation index, see [llms.txt](https://docs-perps.katana.network/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs-perps.katana.network/vkat.md).
# vKAT
vKAT is the vote-escrowed form of KAT. It is the first chain token designed to provide holders with direct exposure to the growth and success of applications on Katana. By locking KAT into vKAT, holders earn real yield from application revenues in exchange for directing KAT emissions to those applications.
## Overview
vKAT draws on the ve(3,3) model to produce a tokenized real-yield index from across the Katana DeFi ecosystem. It initially integrates with Sushi and progressively expands to additional core applications including Morpho, Kensei, a perpetual DEX, and a yield trading protocol. vKAT provides diversified real yield sourced from real economic activity on the chain.
| Property | Detail |
| --------------- | ---------------------------------------------------------------------- |
| Minting | 1:1 — lock KAT to receive vKAT |
| Transferability | Non-transferable (vKAT is bound to the minting wallet) |
| Voting Cycle | Bi-weekly epochs |
| Vote Power | Full power immediately on mint — no ramp-up period |
| Vote Rollover | Votes automatically carry over between epochs |
| Yield Token | Customizable — receive fees and incentives in any token of your choice |
## How It Works
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### Mint vKAT with KAT
Lock your KAT tokens to mint vKAT at a 1:1 ratio. Once minted, you gain access to emissions voting and vote incentives immediately.
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### Vote or Set-and-Forget
Direct KAT emissions to the protocols and liquidity pools you prefer. You can vote dynamically each epoch to adjust your allocations, or set a strategy once and let it run automatically with vote rollover. Votes only need to be updated when you want to change the pools you are directing emissions to.
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### Earn Diversified Rewards
Receive yield from three sources: trading fees from the pools you vote for, vote incentives from projects that want emissions directed to their pools, and vKAT exit fees paid by other users. All rewards are settled in a token of your choice — for example, you can set your vKAT to automatically convert all earnings to stablecoins.
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### Sell Your Votes
Projects that need incentives directed to their liquidity pools can purchase your votes through vKAT native marketplace, providing an additional revenue stream for vKAT holders.
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## Exit Flexibility
vKAT does not use a time-based lock. Instead, it uses a fee-based exit mechanism:
* **Instant exit:** Redeem KAT from vKAT at any time with a 25% fee.
* **Delayed exit:** Wait up to 45 days and pay as little as 2.5%.
* **Linear decay:** The fee decreases linearly from 25% to 2.5% over the 45-day period.
This design replaces the traditional multi-year lock found in protocols like Curve (veCRV) and Aerodrome (veAERO), giving holders flexibility while still incentivizing long-term commitment.
## avKAT — Hands-Off Mode
avKAT is an autocompounding wrapper for vKAT. It is fully liquid, transferable, and composable as a standard ERC-20 token.
| Property | Detail |
| --------------- | -------------------------------------------------------------------------------------------- |
| Minting | 1:1 — convert KAT or vKAT into avKAT |
| Transferability | Fully transferable and composable (usable as collateral on Morpho, tradeable on Sushi, etc.) |
| Voting | Automatic — votes each epoch for the pools that return the highest yield |
| Yield | Autocompounded into more avKAT |
| Exit | Sell into a DEX pool at any time, or convert back to vKAT |
avKAT requires no action from the holder. All yield is automatically compounded, and votes are automatically directed to maximize returns each epoch.
## Voting Strategies
Manual Voting (vKAT)
Vote for the pools you want to direct emissions to. Votes automatically roll over. Optimal if you are voting for your own LP positions, since you can compound the effect of emissions on your own liquidity. Yield is dynamic based on your votes each epoch, settled in the token(s) of your choice.
Profit-Maximizing Relayer (vKAT)
Delegate to a relayer once. Each epoch, the relayer automatically directs your votes to maximize yield. Delivers the highest possible return for a given epoch, settled in the token(s) of your choice.
Autocompounder (avKAT)
No action required. All yield autocompounds into more avKAT. Delivers the highest possible return with zero management overhead. avKAT is fully liquid and can be deployed elsewhere in DeFi.
## Emission Distribution
KAT emissions are distributed over an 18-month schedule designed to maximize long-term protocol alignment and liquidity depth. The strategy is built on two components:
### Total Incentive Reduction
The overall pool of monthly incentives decreases linearly from 20,000,000 KAT in Month 0 to 0 KAT in Month 18. This linear decay incentivizes early participation and reduces total token inflation over time. The gradual reduction — rather than a hard cliff — prevents large-scale capital flight by allowing liquidity to exit pools in a slow, controlled manner while giving the flywheel time to become self-sustaining.
The total KAT distributed over the full 18-month period is approximately 180,000,000 KAT.
### Shifting Allocation
Within each month total, the split between vKAT-directed emissions and opinionated distribution (e.g., Sushi liquidity mining) shifts over time:
| Month | Total Monthly KAT | vKAT Portion | Sushi Portion |
| ----- | ----------------- | ------------ | ------------- |
| 0 | 20,000,000 | 50% | 50% |
| 3 | 17,171,717 | 55% | 45% |
| 6 | 13,737,374 | 61% | 39% |
| 9 | 10,505,051 | 67% | 33% |
| 12 | 7,070,707 | 73% | 27% |
| 15 | 3,838,384 | 78% | 22% |
| 18 | 404,040 | 84% | 16% |
The vKAT allocation starts at 50% and increases linearly to approximately 85% by Month 18. This design aggressively directs a higher proportion of the shrinking incentive pool toward users who lock their tokens, driving long-term staking adoption and strengthening governance. The initial 50/50 split ensures sufficient liquidity is bootstrapped from day one.
Over the full 18 months, approximately 65% of total emissions (\~117M KAT) flow through the vKAT system, and approximately 35% (\~63M KAT) flow through opinionated distribution.
### Sustainable Emissions
In the long run, vKAT emissions will be sustainably supported through structured KAT buybacks financed by chain revenue, Vault Bridge yield, sequencer fees, and chain-owned liquidity. This means the protocol does not depend on continual new token locks to sustain incentives — a key improvement over models like veCRV and veAERO.
## Comparison to Other Models
| Feature | veCRV (Curve) | veAERO (Aerodrome) | vKAT / avKAT (Katana) |
| ----------------------------------------------------- | ---------------------------------- | ----------------------------- | ----------------------------------------------------------------------------- |
| Aligned incentives between protocol, LPs, and lockers | No | Yes | Yes |
| Liquid token locker | Via Convex (value leakage) | Via veNFT (limited liquidity) | Via avKAT — fully fungible ERC-20, composable as collateral, tradeable on DEX |
| Time-based lock | Up to 4 years, decaying vote power | Up to 4 years, no decay | No time lock — fee-based exit replaces duration lock |
| Exit mechanism | Not possible (unless via cvxCRV) | Sell veNFT on marketplace | Instant with 25% fee, or wait 45 days for 2.5% fee (linear decay) |
| Dependent on continual new locks | Yes | Yes | No — emissions funded by chain revenue buybacks |
## Getting Started with vKAT
Once KAT transferability is live (targeted March 2026), the vKAT Armory — Katana staking interface — will launch alongside it. From the Armory, you can lock KAT, vote on emissions, claim rewards, and convert to avKAT.
For questions or a personalized strategy session, contact the Katana team at or via Telegram at @achau1.