A Solana Cat Memecoin Generated $2.8M in Zcash Rewards For Holders

Anonymous Cat ($ZCAT), a cat-themed memecoin on Solana, has handed its holders an unusually large payout. The token has paid its holders nearly $3 million worth of Zcash as a rally in both tokens turned an unusual reward mechanism into a substantial return.

How the Reward Mechanism Works

ZCAT charges a 3% tax whenever the token is transferred, and uses those proceeds to distribute $ZEC directly to holders, creating an unusual link to one of crypto's hottest assets. According to the project's dashboard, approximately 2,320 ZEC has been distributed in total, now worth roughly $2.8 million. Wallets holding at least $20 worth of $ZCAT are eligible for these payouts.

The core mechanism distributes transaction fees continuously to ZCAT holders in the form of ZEC, creating a "hold ZCAT, earn ZEC" yield narrative. However, the rewards are not guaranteed income. The ZEC rewards come from other people buying, selling, and transferring ZCAT, not from a business or investment producing income, so if trading activity dries up, the payouts will slim down sharply.

Zcash's Surge Has Amplified Returns

ZEC has gained more than 2,300% over the past year and passed $1,200 late Sunday amid renewed demand for privacy-focused cryptocurrencies. ZEC surged to $1,200 on September 6, a level not seen in nearly a decade, completing a 370% rally over three months, supercharged by a violent short squeeze with over $46 million in short positions liquidated in 24 hours.

Broader tailwinds have also supported the move. Grayscale listed a spot Zcash ETF on NYSE Arca in late August, giving investors exposure through a U.S.-listed fund rather than requiring them to buy and custody ZEC directly. Zcash allows users to hide details including the sender, receiver, and amount of a transaction, making it the most direct way to bet on the privacy sector coming back as a key narrative among crypto traders.

$ZCAT itself has also seen sharp price action. The token gained 60% in 24 hours after Aster announced a $ZCAT perpetual listing, adding exchange momentum to an already active trading base. The Solana-based token briefly reached a $69 million market cap before retreating, with a 24-hour gain exceeding 230% at its peak.

Sources:
CoinDesk: This cat memecoin has paid holders $2.8 million in Zcash as ZEC tops $1,200
CoinMarketCap: Latest Zcash News and Market Insights
CoinGecko: Anonymous Cat (ZCAT) Price and Market Data