Treasury and buybacks

Treasury value (TV) is everything Kato holds, across every venue and wallet, at today's prices: cash, positions at their mark, hedges, and cash lent out to earn interest. The home page shows it live, with its history.

Money added to or taken out of the treasury (the launch tax, a top-up, capital moved out) is a capital move, not profit. Returns are time-weighted and shown net of these moves, so a deposit never looks like a gain or lifts the APR, and a withdrawal never looks like a loss. Only what the strategies earn counts toward returns to holders.

Kato only returns profit once TV is above a set target. The target keeps the treasury at a constant size: strategies keep the capital they trade with, and profit above it goes back to holders. The target is set at launch, and the home page draws it on the treasury chart, with the distance still to go.

Kato buys $KATO in its pool through its own TWAP (time-weighted average price): a slice at a time, spaced out, with each buy capped against the pool's depth and checked against an oracle price. What it buys goes straight to the burn address, so fewer tokens remain in circulation.

A short list of published values sets how much of each period's profit above the target goes to buybacks, and how often they run. The values are still open (TBD).

The policy changes only with notice: every version is published with its old and new values and takes effect after a notice period, and every buyback records the version it used.