ZCAT, a cryptocurrency that shares Zcash with its token holders, has rallied 35% in value. The project also reported distributing $2.8 million in ZEC rewards to holders. A 3% fee on ZCAT transactions funds those payouts.
The Zcash payout
ZCAT's model is straightforward: hold the token, get ZEC. The project reported $2.8 million in Zcash rewards distributed to holders. That's a direct transfer of value from the token's ecosystem to its community.
The 3% fee
Every ZCAT transaction carries a 3% fee. That fee goes into the pool that funds the ZEC rewards. So the more ZCAT trades, the bigger the next distribution. The fee is built into the token's mechanics.
The 35% jump
ZCAT's value rose 35% this week. The rally comes as the project continues to pay out Zcash. The exact driver isn't clear from the numbers, but the combination of a rising price and real token rewards is drawing attention.
The 3% fee stays in place, so future payouts will track trading volume. The next distribution date hasn't been announced, but the mechanism is set.
