> For the complete documentation index, see [llms.txt](https://catex.gitbook.io/catex/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://catex.gitbook.io/catex/tokenomics/tokens.md).

# Tokens

The Catex ecosystem is powered by four interconnected tokens, each serving a unique role in liquidity, governance, and incentives. At the core is `CATX`, with additional tokens designed to enhance sustainability and efficiency.

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### `CATX` – Utility Token

`CATX` is the primary ERC-20 token of Catex, essential for liquidity and governance. It serves two main purposes:

1\. Liquidity Provision – Users can provide liquidity in Catex pools and earn.

2\. Governance & Rewards – `CATX` can be locked to create `veCATX`, granting voting power and access to protocol revenue.

#### Key Features:

* The most liquid token in the ecosystem.
* Used in gauge voting and emissions distribution.
* Aims to enhance trading conditions by incentivizing deep liquidity.

{% content-ref url="/pages/ZpXcbyjKUWiDEjk2nOSd" %}
[CATX](/catex/tokenomics/tokens/catx.md)
{% endcontent-ref %}

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### veCATX – Vote-Escrowed Governance Token

`veCATX` is an ERC-721 (NFT) token obtained by locking `CATX` for up to 2 years. The longer the lock, the more voting power a holder receives.

#### Utility & Benefits:

* **Governance Participation** – veCATX holders can vote on liquidity gauges, directing CATX emissions to pools.
* **Revenue Distribution** – Holders earn 100% of trading fees and incentives from the pools they vote for.
* **Rebasing Mechanism** – veCATX follows ve(3,3) mechanics, with weekly emissions distributed to prevent dilution.

#### Additional Features:

* veCATX gradually decays until the lock expires.
* Positions can be merged, split, and traded on secondary markets.
* Used to determine the allocation of incentives and liquidity emissions.

{% content-ref url="/pages/BWHI3GJv7sQyAn3jSw4z" %}
[veCATX](/catex/tokenomics/tokens/vecatx.md)
{% endcontent-ref %}

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### oCATX – Emissions & Liquidity Incentive Token

`oCATX` is a tradable emissions token designed to improve incentive alignment and reduce `CATX` devaluation.

#### Utility & Benefits:

* **Convert to CATX at a Discoun**t – oCATX holders can redeem CATX at a reduced rate, reducing sell pressure.
* **Upgrade to veCATX** – oCATX can be converted 1:1 into veCATX, allowing participation in governance.
* **Supports Liquidity Incentives** – A portion of redemptions is allocated to boost top-performing liquidity pools.

This system helps stabilize rewards, reduce inflation, and encourage long-term participation.

{% content-ref url="/pages/wD0iTXReDGnJdAajDFgY" %}
[oCATX](/catex/tokenomics/tokens/ocatx.md)
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### bveCATX – Voter Incentive Token

`bveCATX` is a non-liquid token designed to reward active `veCATX` voters and deepen governance engagement.

#### Utility & Benefits:

* **Redeemable for `veCATX` at a 100% Discount** – Encourages continuous voter participation.
* **Incentive Distribution Mechanism** – ≈30% of `oCATX` redemptions are used to buy back `CATX`, which is then distributed as `bveCATX` to incentivize gauge voting.

This ensures that liquidity incentives are effectively aligned with governance decisions, reinforcing sustainable rewards for engaged participants.

{% content-ref url="/pages/YSx52HO0LbXKF3KFFGhl" %}
[bveCATX](/catex/tokenomics/tokens/bvecatx.md)
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