A brand-new cat-themed memecoin called ZCAT is already handing out real money to its holders. The token charges a 3% tax on every transfer and uses the proceeds to buy Zcash (ZEC), which it then distributes to its community. So far, ZCAT says it has paid out $2.8 million in Zcash.
How the 3% tax works
ZCAT is a token with a built-in fee. Every time ZCAT moves between wallets, 3% of the transaction is taken out. That slice is converted into Zcash and sent to existing ZCAT holders. The idea is that simply holding the token earns you a stream of ZEC, a privacy-focused cryptocurrency that has seen its price climb recently.
At the time of the report, ZEC was trading above $1,200. That means the $2.8 million paid out so far represents a meaningful amount of Zcash, though the exact number of tokens distributed wasn't disclosed.
A very new token with a fast start
ZCAT is described as brand new, which makes the $2.8 million payout figure stand out. Most memecoins launch with promises and little else. ZCAT has already moved real value to its holders, even if the token itself has no stated utility beyond the tax-and-reward mechanism.
The project hasn't released a whitepaper or a detailed roadmap. What's known is that the tax is hardcoded into the token's contract, and the distribution happens automatically. That's a common structure among so-called reflection tokens, though ZCAT's choice to pay out in Zcash rather than its own token is less typical.
What the Zcash connection means
Zcash is a well-established privacy coin, and its price surge above $1,200 has drawn attention. By tying ZCAT's rewards to ZEC, the memecoin is betting that holders will stick around for the passive income. But it also means ZCAT's value is partly dependent on Zcash's market performance.
If ZEC drops, the payouts shrink in dollar terms. If it climbs, holders get a bigger windfall. That's a different risk profile than most memecoins, which usually just rely on hype and trading volume.
There's no word yet on whether ZCAT plans to list on major exchanges. The token appears to be trading only on decentralized platforms, and its liquidity pool is small. That's typical for a project this young, but it also means the $2.8 million figure could be based on a limited number of transactions.
What to watch next
The big question is whether ZCAT can sustain its payout rate. The 3% tax only generates revenue when people trade the token. If trading volume dries up, so do the Zcash distributions. The project hasn't announced any upcoming listings or partnerships, and its social media presence is minimal.
For now, ZCAT is a curiosity: a memecoin that actually pays out a real cryptocurrency. Whether it becomes more than that depends on whether traders keep moving the token. The next few weeks will show if the early payouts were a one-time burst or the start of a longer trend.
