Designing Network-Level Token Value Accrual for Katana

Aragon Marketing -

Value accrual is the engine of sustainable growth for ecosystems.

It aligns incentives, strengthens networks, and creates a feedback loop where usage drives value and value flows back to participants.

Obvious as it may sound, most ecosystems struggle to design these systems. We at Aragon set out to change this, building modular tokenomics that can be deployed at the protocol or network level, with the launch of our Value Accrual Toolkit bringing years of development to the market. Around the same time, Katana announced its DeFi-first chain. When it came to designing tokenomics for KAT, their choice was clear: build with Aragon.

Together, we’re building vKAT: Katana’s network-level ve-tokenomics system.

Turning KAT into a Growth Engine

Katana’s ethos is simple: a chain where DeFi is the chain, and KAT functions as the coordination tool for the entire ecosystem. To realize this vision, Katana needed a system that put token holders at the heart of decision-making without burdening them with governance overhead. That’s where ve-style tokenomics come in.

With vKAT, KAT holders can lock tokens to receive non-transferable voting power. Each epoch, vKAT holders direct KAT emissions across Katana’s ecosystem, starting with Sushi liquidity pools, expanding to lending markets, perpetuals, and beyond. The impact is direct: emissions flow where liquidity is needed, fees are generated, and value is returned to token holders.

ve models have proven their value in leading DeFi protocols. Katana is building on those foundations by extending the mechanism sustainably at the rollup level, making value accrual a property of the entire chain.

Inside the vKAT Armory

Aragon is delivering a complete coordination stack for Katana’s tokenomics:

  • vKAT Locker: Lock KAT to mint vKAT, merge or split positions, delegate voting power, and manage exit through a dynamic exit fee mechanism that redistributes value to long-term holders.
  • Gauge System: Direct KAT emissions to any destination address on Katana, starting with Sushi pools. Rewards accrue only to pools voters support, incentivizing better decision-making.
  • Automation Layer: Relayers let users participate passively by delegating votes or compounding fees.
  • Governance Hub: Integrated directly into the Katana app for seamless staking, voting, and reward claiming.
  • Backend + Indexer: Infrastructure to surface governance data in real time and integrate with third-party systems like bribe markets.
  • Tokenomic Advisory Support: providing guidance, knowledge, and support leveraging nearly a decade of experience in tokenomic driven governance

The build is being delivered in phases, with core infrastructure, like vKAT locker, gauges, and backend systems, going live in Q4 2025, followed by governance UI, automation tools, and long-term maintenance.

A Blueprint for the Next Generation of Rollups

With vKAT, Katana is showing what comes next: next-generation rollups powered by next-generation tokenomics. Instead of relying on short-term incentives with often misalignment across the ecosystem, Katana is embedding value accrual into the network itself, solving the disconnect of the token from the network. More importantly, vKAT pioneers an approach where tokenholders have tangible economic benefits from the network's success.

This means:

  • Sustainable yield for token holders.
  • Stronger liquidity for apps.
  • Long-term value flows back to the chain.

Katana’s approach demonstrates that value accrual can be more than a protocol-level mechanism. It can become the economic fabric of an entire chain, providing a blueprint for other ecosystems to follow.

The Infrastructure for Sustainable Network Economies

Aragon has spent years building tokenomics infrastructure and onchain coordination systems for projects like Curve, Lido, and Polygon. With Katana, we’re taking those proven mechanics and adapting them for a full rollup economy, designing value accrual not just for a protocol, but for an entire chain.

vKAT goes beyond governance. By giving token holders direct control over capital flows across the Katana network, vKAT aligns economic incentives between token holders and builders. This ensures all key stakeholders have the shared objective for Katana to deliver a superior experience for the users of the network and capture value for those contributing. In turn, vKAT becomes the infrastructure that underpins Katana’s DeFi-first network.

We’re excited to build it together.

Dive into value accrual mechanisms and how Aragon’s Value Accrual Toolkit can benefit your project, or head here to learn more about Katana and vKAT in Katana’s announcement blog.