HOW TUNA
WORKS.

THE FOUNDATION

The system

TUNA connects a currency, an NFT collection and a protocol-owned reserve. TUNA is the currency. Tuna Kitties are the assets users feed to build Power and participate in funded rewards. The reserve holds assets accumulated by the protocol.

The starting allocation is 200,000 TUNA across two protocol-owned liquidity positions: 100,000 for TUNA/KONA and 100,000 for TUNA/WETH. Trading fees can fund the reserve, Kitty rewards and the team. Future products can add other sources of revenue to the same system.

“Reserve currency” describes the model TUNA is building. TUNA is not a stablecoin. Its market price can move independently of the assets held by the reserve.

LAUNCH DESIGN

TUNA & liquidity

The 200,000 TUNA starting supply is allocated equally across the TUNA/KONA and TUNA/WETH launch pools. Both use concentrated liquidity owned by the protocol. This is protocol-owned liquidity, or POL.

Starting supply and current supply are different: live supply reflects minting and burns. The reserve page reads current supply directly from the token.

A concentrated position supplies liquidity within a price range. Its asset mix changes as trades move the price. It earns swap fees while its liquidity is active; trading volume alone does not guarantee revenue for the position.

TUNA pairs with KONA and WETH. Collected KONA fees require conversion into WETH; WETH fees can go directly to revenue distribution. KONA held in a liquidity position is not the same as ETH already deposited in the reserve.

NFT PARTICIPATION

Kitties & Power

Feeding permanently burns TUNA and increases a Kitty’s Power. Higher Power increases its reward weight, with diminishing returns. Rewards depend on each Kitty’s share of total active weight and the ETH actually funded by protocol revenue.

Feeding burns the tokens, not the NFT. Power and unclaimed rewards stay with the Kitty when it changes owners. Holding TUNA alone does not earn Kitty rewards.

Feeding and reward claims take place on Robinhood. A Kitty must be on Robinhood and owned by the connected wallet to use those actions. Kitties held on Abstract can be brought over through the claim and bridge flow.

Funded rewards stream over 24 hours. Feeding does not create ETH or promise a fixed return. Review the selected Kitties and TUNA amounts before confirming: consumption cannot be reversed.

ASSET ACCOUNTING

The reserve & NAV

The reserve starts with no initial backing. It builds assets as revenue is realized and deposited. At launch, the reserve asset is WETH, the wrapped form of ETH.

NAV means net asset value: the value of assets after liabilities and obligations. Reserve growth requires actual assets or income. A higher TUNA trading price, a token burn or an internal accounting entry does not by itself add assets to the reserve.

The launch dashboard shows WETH reserve assets and an ETH-per-TUNA accounting ratio. That ratio divides reserve assets by current TUNA supply. It is not a dollar NAV, a price floor or an offer to redeem TUNA. The launch model has no public redemption facility.

As the asset mix expands, meaningful NAV reporting will need clear valuations, liabilities and treatment of illiquid assets. A future product’s projected income should not be counted as cash already earned.

LAUNCH DESIGN

Fees & revenue

Collected TUNA-side LP fees are burned. Collected KONA-side fees can be converted into WETH. The WETH pool follows the same model, with its WETH fees going directly to the revenue router after collection. Once each position is deployed and connected, its realized revenue is allocated:

70% · Reserve

Retained as reserve assets.

20% · Kitty rewards

Funds ETH distributions through Kitty Power.

10% · Team

Supports protocol operations and development.

This split applies to realized protocol revenue. It is not a tax on every TUNA transfer. Fee collection and conversion are separate operations, so fees can accumulate before they are distributed.

Burning TUNA fees reduces supply. Depositing the reserve share of realized WETH revenue adds backing. They serve different purposes and are reported separately.

FUTURE DIRECTION

Bonds

Bonds could let the protocol acquire approved reserve assets or liquidity in exchange for TUNA under defined pricing and delivery terms. They would provide another way to grow protocol-owned assets beyond trading fees.

The useful question is what the reserve receives relative to the TUNA issued. Issuing more TUNA can dilute backing per token even when total treasury assets rise. Any bond design must account for both sides of that exchange.

Bond assets, pricing, limits and vesting terms will be published with the relevant product. Bonds are not part of the initial launch, and these docs do not announce a discount or opening date.

FUTURE DIRECTION

Real-world assets

RWAs are tokenized claims linked to assets outside crypto. Potential categories include treasury instruments and equities. TUNA’s direction is to explore whether suitable assets can diversify the reserve or support useful products.

Tokenization does not make every asset yield-bearing or instantly redeemable. Each asset has its own issuer, custody, transfer restrictions, valuation and redemption terms. Equity exposure and recurring cash income are different things.

Any integration would need to explain what the token represents, how it is valued, how the protocol can exit the position and where income comes from. No tokenized-stock or other RWA integration is included in the initial launch.

FUTURE DIRECTION

Productive products

A productive product provides a service people use and generates revenue the protocol can retain. Trading liquidity is the starting point. Future directions could include liquidity services, asset markets or products built around suitable RWAs.

The connection to TUNA is the revenue path: usage produces fees or income, costs and obligations are accounted for, and the retained share can increase reserve NAV. Token incentives and trading activity are not substitutes for net revenue.

New products can connect to the reserve system as separate modules. Each release should state its assets, costs, risks and distribution policy. The launch fee split does not automatically describe every future product.

REFERENCE

Key terms

POL

Protocol-owned liquidity. A liquidity position held by the protocol rather than by an individual depositor.

Power

A Kitty’s accumulated feeding score. Reward weight determines its share of funded distributions.

Reserve

Assets retained by the protocol to build backing over time.

NAV

Net asset value. Asset value after liabilities and obligations, using a stated valuation method.

Realized revenue

Revenue actually received, distinct from estimates, uncollected fees or expected future income.

Bond

A proposed mechanism to exchange approved assets for TUNA under published terms.

RWA

A tokenized claim linked to a real-world asset, subject to that asset’s specific terms.