nov 11, 2026
KAT Tokenomics Update: How avKAT Benefits From Katana Revenue
vKAT and voting are sunsetting. A share of fees from Katana Swap, Katana Perps, Vault Bridge and sequencer fees now funds KAT buybacks, and every KAT bought goes to avKAT stakers.
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Live November 17, 2026
By the Katana Foundation
Katana has been live for over a year and is one of the few networks in crypto earning real revenue from people using it. KAT helped bootstrap that revenue, but holders only saw a fraction of it. To participate, you had to lock KAT into vKAT, vote on emissions every round and chase vote incentives.
Today we, the Katana Foundation, have major updates to share.
You said it was too complicated. You’re right. Starting November 17, there is one way to compound KAT: stake it into avKAT.
What This Means for Existing KAT Holders
Our goal is to make KAT staking simpler, more accessible, and better aligned with Katana's growth, without requiring existing holders to navigate another complicated system.
Here's what changes for you:
If you hold KAT: Nothing changes about your token. You can continue holding, lending, or staking your KAT into avKAT to participate in protocol revenue.
If you hold vKAT: Your existing position can be converted to avKAT before or after November 17. After the sunset, vKAT will no longer earn voting fees or incentives. To continue earning staking rewards, you'll need to convert to avKAT.
If you already hold avKAT: No action is required. Your position will automatically participate in the expanded revenue model, with rewards compounded every epoch.
Existing vKAT holders are not required to convert before November 17, and the ability to convert remains available after the sunset.
The transition changes how KAT holders participate in protocol revenue, but it does not change the underlying KAT token.
What's changing
vKAT and voting are sunsetting. You can no longer stake KAT for vKAT, vote on emissions, or receive vote incentives. KAT and avKAT are unaffected.
Revenue funds KAT buybacks. A share of fees from Katana Swap, Katana Perps, Vault Bridge and sequencer fees is used to buy KAT on the open market.
100% of purchased KAT goes to avKAT. Buybacks are added to avKAT automatically, so your position compounds without you claiming anything.
Exit drops from 45 days to 7. Wait out the 7-day cooldown and exit with no fee, or leave early for a fee that shrinks every day.
vKAT converts to avKAT in one click, before or after the sunset.
Why this change
KAT's original design was ambitious: tokenomics that operated across the ecosystem and within individual DeFi products.
But that ambition came with complexity.
Three tokens, a vote every round, and incentives to track. Only direct participation in the voting system earned fees, making it difficult for many holders to share in the growth of the network's activity.
The voting layer also limited where staking revenue could come from. Previously, avKAT primarily earned from Sushi fees through the vKAT voting system.
With voting removed, a share of revenue from multiple products can be directed toward avKAT, while new sources can be added as the ecosystem grows.
Instead of requiring holders to chase incentives, the new model connects avKAT to the revenue generated by Katana's products.
This also creates a simpler relationship between Katana's success and KAT holders. As more people swap, trade, and bridge assets through Katana, those activities generate revenue that translate into KAT buybacks.
The goal isn't to guarantee higher returns. It's to create a simpler, more sustainable staking model supported by a broader range of revenue-generating products.
Where avKAT yield comes from
Katana owns its venues. KAT holders can directly benefit from them.
Katana Swap. Katana now owns the Sushi deployment on Katana. Same battle-tested contracts, and the swap fees stay within Katana.
Katana Perps. Built by the IDEX team, which Katana acquired. Every trade pays fees, and a share now goes to avKAT.
Vault Bridge. Katana now owns Vault Bridge, which allows users to put bridged assets to work in yield strategies on Ethereum. A share of that revenue funds buybacks.
Sequencer fees. The fees paid on transactions processed on Katana.
More swaps, more trades and more capital in Vault Bridge mean more revenue, more KAT bought, and more KAT going to avKAT stakers.
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Actual benefits will vary with protocol activity and revenue generation.
Old avKAT vs new avKAT
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How buybacks work
A share of revenue generated by Katana's products is used to purchase KAT on the open market.
100% of the KAT purchased through these buybacks is allocated to avKAT stakers.
These rewards automatically compound into avKAT positions every epoch. There is nothing to claim or restake.
At launch, buybacks will follow a scheduled process. Execution will transition to fully automated onchain buybacks at a later date once proper security and engineering have been completed.
Because buybacks are funded by protocol revenue, their size depends on actual usage of the protocol.
As more people use Katana's products, more fees can become available to support buybacks.
How to Stake KAT and Participate with avKAT
Staking KAT into avKAT is simple. Once you stake, your position automatically compounds with no additional action required.
How to Get Started
Visit the staking page. Head to the Katana staking page and connect your wallet.
Stake your KAT. Enter the amount of KAT you want to stake and confirm the transaction.
Receive avKAT. Your KAT is converted into avKAT at the current exchange rate.
Compound automatically. Your avKAT position benefits from revenues that automatically compound every epoch. No claiming, restaking, or manual action is needed.
Stake Anytime. Compound Automatically.
There are no restrictions on when you can stake. You can convert your KAT into avKAT at any time.
Once you've staked, you're all set. The protocol handles compounding automatically every epoch, so you don't need to manage your rewards or take any additional steps.
How to Convert Your Existing vKAT to avKAT
Starting November 17, 2026, vKAT will no longer earn voting fees or incentives.
There is no deadline to convert. You can convert your vKAT into avKAT at any time, before or after November 17.
To continue earning staking rewards, existing vKAT holders will need to convert their positions to avKAT.
How to Convert
Visit the staking page.
Connect the wallet that holds your vKAT.
Click "Convert to avKAT" and confirm the transaction.
Once converted, your avKAT position begins accumulating automatically, with rewards compounded every epoch. No additional steps are required.
How to Unstake avKAT and Receive KAT
You can exit your avKAT position at any time. There are two ways to convert your avKAT back into KAT, depending on how quickly you want to exit.
Option 1: Unstake Through Katana
Visit the staking page. Connect your wallet and navigate to the unstaking section.
Request to unstake. Enter the amount of avKAT you want to unstake and start the 7-day cooldown.
Wait or exit early. Complete the cooldown to receive your KAT with no exit fee, or exit sooner by paying an early exit fee.
Claim your KAT. Once the cooldown is complete, withdraw your KAT.
Early Exit Fees
The exit fee decreases each day throughout the cooldown period.
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You can exit immediately if needed, but waiting the full 7 days lets you unstake without paying an exit fee.
Option 2: Swap avKAT for KAT on a DEX
You can also exit by swapping avKAT directly for KAT on a decentralized exchange that supports the pair.
Visit a DEX with avKAT/KAT liquidity.
Enter the amount of avKAT you want to swap.
Review the exchange rate and confirm the transaction.
This option allows you to exit without waiting for the staking cooldown.
However, the swap executes at the current market rate, which may differ from the protocol's conversion rate. Trading fees, price impact, and slippage may also apply.
More Flexibility for Stakers
The previous 45-day exit period made staking a bigger commitment, particularly for new participants.
Reducing the cooldown to 7 days gives stakers more flexibility while maintaining a structured withdrawal process.
You can wait seven days to avoid the protocol exit fee, leave earlier by paying a declining fee, or swap directly on a DEX at the available market rate.
Key dates
vKAT staking and voting end: November 17, 2026
New Revenue starts flowing to avKAT: November 17, 2026
Frequently asked questions
What happens if I don't convert my vKAT before the sunset date?
Nothing is lost. You can convert at any time, before or after the sunset. vKAT stops earning once it is sunset, and your position starts earning again as soon as it is converted to avKAT.
Is anything changing about the KAT token?
No. KAT is unchanged. The changes apply to vKAT, which is sunsetting, and avKAT, which now earns from more sources.
Do I need to claim avKAT rewards?
No. Rewards are automatically compounded into your avKAT position every epoch. There's nothing to claim or restake.
What happens to vote incentives?
Projects can no longer offer vote incentives, since there are no more votes to secure.
What are sequencer fees?
Sequencer fees are the fees paid on transactions processed on Katana. A share of them now funds KAT buybacks for avKAT stakers.
Why is the cooldown shorter?
A 45-day lock made staking a hard decision, especially for new participants. With a 7-day exit, staking carries less commitment, and you can still leave early if you need to.
Will I lose any of my KAT when converting from vKAT to avKAT?
Your vKAT will be converted into avKAT at the current exchange rate. Because avKAT automatically compounds rewards every epoch, its value relative to KAT increases as rewards accumulate. This means you may receive fewer avKAT tokens than the amount of KAT represented by your vKAT, but each avKAT represents a greater amount of underlying KAT. The conversion accounts for this difference in value.
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Program Details & Disclaimer: This post is not investment, legal or tax advice and users are encouraged to consult personal investment, legal and tax advisors. This post and its contents, including the above-referenced statements related to any token, rewards, distributions, or program ("Program"), may be modified or terminated at any time without notice, and is subject to the Katana Foundation terms and conditions (here https://app.katana.network/legal/terms-and-conditions). Governance of the program, interpretation of terms, and application of the Program to individuals is subject to the interpretation and sole discretion of the Katana Foundation. Participation in crypto and emerging blockchain technology involves risk, and by participating in the Program you agree not to hold Katana Foundation liable for any losses or damages that you may incur for any reason including without limitation technology errors, investment value declines, or Program administration.
Katana Perps is not available to persons located in or residents of the United States. Access to Katana Perps may be restricted in other jurisdictions. It is your responsibility to ensure that your use of Katana Perps complies with applicable laws in your jurisdiction.
