Tokenomics

Initial Supply

The initial supply will consist of two components:

• Fixed initial minimum amount of 1,000,000 $KATSU

• Dynamic component determined by the amount of minted Cattos

Each minted Catto at the point of snapshot ($KATSU token contract deployment) will add an additional 1,000 $KATSU to the initial supply.

And therefore the total initial supply will be 1,000,000 + (No. of Cattos minted * 1,000)

Example:

Total Cattos minted: 100

Total initial supply = 1,000,000 + (100 x 1,000) = 1,100,000 $KATSU

A wallet address holds 7 Cattos, and therefore is eligible to claim 7 x 1,000 = 7,000 $KATSU

Initial Distribution

The dynamic initial supply component will be airdropped to Catto holders to claim.

The fixed initial supply component will be distributed as such:

Amount ($KATSU)	Distribution
900,000	DEX liquidity pools
50,000	Team incentives
50,000	Reserved for giveaways, marketing, community building, etc
Variable	Airdrop for existing Catto holders to claim

Dynamic Supply & Demand

$KATSU will exist mainly as a utility token, and it is important to strike a balance between supply and demand.

To achieve this, we have made a few critical tokenomics design choices:

• There is no supply limit for the $KATSU token

• Inflation occurs weekly, and the rate of inflation is dynamic, depending on the number of Cattos currently minted

• Currently per Catto contributes to a weekly increase of 15,000 $KATSU to the token supply

• The increase in token supply per Catto can be adjusted in the future via DAO and governance vote

• Despite the weekly inflation, it is possible for the token to become deflationary, when there are sufficient gamification activities, many of which will cause $KATSU to be burned and removed from total supply