Catto Shelter (Adoption)

Please read the previous section on Treasury Reserve Mechanism before continuing here for better understanding.

When someone exchanges a Catto for ETH from the treasury reserve, the Catto ownership will be transferred to the contract. It will then be automatically available for adoption in the Catto Shelter on the website. Anyone can participate in an adoption any time. Adopted Cattos give the holder additional benefits which will be discussed in later sections.

Adoption Mechanism

The Catto Shelter will only be live after 2 weeks of a sell-out (fully minted).

There will be an adoption fee when someone adopts a Catto. The fee calculation is as such:

ADOPTION FEE = 0.01 ETH + ( no. of times being put up for adoption * 0.01 ETH )

Eg. Alice adopts a Catto that has been put up for adoption 4 times. In order to adopt the Catto, Alice has to pay 0.01 ETH + ( 4 * 0.01 ETH) = 0.05 ETH.

So in another word, the more times a Catto has been put up for adoption, the more expensive it will be for someone to adopt the Catto.

100% of the adoption fee will go into the treasury reserve, until the amount in treasury reserve hits the amount required to support a pegged price of 0.07 ETH, the mint price.

Why Adopt?

Of course, why would someone pay to adopt a Catto?

Utility Token

The core reason to adopt a Catto is that the number of times a Catto has been adopted serves as a multiplier to the amount of utility tokens that will be awarded via the staking mechanism. We are confident that the utility token will bring immense value to Catto holders, and will release more details after the completion of the project phase 1.

A New Dimension for Rarity & Market Dynamics

Beyond the typical trait-based rarity, which are fixed and immutable, the number of times a Catto has been put up for adoption will serve as a dynamic component to a Catto's rarity.

Even if a Catto's traits are all common, if it has been put up for adoption many times, it could be as valuable, or even more valuable compared to a rare Catto with 0 number of times being put up for adoption, due to the multiplier effect on the staking rewards.

We are excited to see how this will play out for the Opensea market dynamics, especially the floor price of more common Cattos.