ZCAT Meme Coin Distributes $2.8 Million in Zcash Amid ZEC Price Surge

A Solana-based cat-themed meme coin called ZCAT has been distributing funds to its holders through a unique mechanism. The token levies a 3% transfer tax on every transaction, which is then converted into Zcash (ZEC) and distributed to wallets holding at least $20 in value.

According to the project dashboard, ZCAT has cumulatively disbursed approximately 2,320 ZEC, valued at around $2.8 million based on recent prices. This payout has been achieved through over 470,000 transactions.

The distribution mechanism has garnered attention due to a surge in Zcash's price, which has risen more than 23 times year-to-date and briefly broke the $1,200 mark. The higher ZEC rises, the more valuable each disbursed 'tax' from ZCAT becomes on paper.

ZCAT itself rose alongside ZEC, trading at approximately $0.13 with a market cap of around $124 million and 24-hour volume of roughly $22 million. However, its returns are entirely dependent on the token's trading activity, making its sustainability uncertain.