Allocation Design Choices

TheFatCat uses three mechanisms to organize trading-tax revenue:

Design question Choice Limit
How should irregular revenue be allocated? Hold revenue in the Belly and allocate a fraction of unreserved funds per meal. A reserve spreads existing revenue across meals; it does not create income or guarantee payout stability.
Which asset should users receive? Each position selects an enabled menu asset. Procurement is separate from allocation. Settlement depends on asset eligibility, liquidity, oracle checks and fallback conditions.
How should duration affect shares? Scale principal by a seniority multiplier, rising from 1× to 22× for an ordinary continuing position, and by the diet asset’s incentive multiplier. New capital can still reduce existing participants’ percentage shares. Duration does not fix a position’s reward amount.

New ordinary positions start participating in the next meal. Position exits and diet changes follow explicit boundaries rather than claiming the opening meal’s allocation immediately.

See Belly allocation, meal and seniority rules and execution for the formulas and conditions.

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TheFatCat is an experimental DeFi protocol combining community Meme culture with automated transaction tax routing. Nothing in these documents constitutes financial advice or a promise of profit.

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