In ancient texts, the katydid was a general name for the grasshopper family.
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Best known from 螽斯 ('katydid'), the title of a poem in the Classic of Poetry. Because katydids reproduce in great numbers, the word became a classical blessing for having many descendants.
Sits on top and supplies the sound: standalone 冬 is dōng, close to the character's reading zhōng. It carries no insect meaning here, only the pronunciation.