What this page covers
Every protocol fee on EDMA splits exactly once, at the moment proof clears. Half burns permanently in $EDM (with the burn transaction hash published on the receipt); half routes through the TreasurySplitter contract and divides across five program buckets that fund attestors, network operations, builder grants, ecosystem development, and staker rewards. This page explains the split mechanics, the five-bucket allocation, the execution timing, and the governance controls that bound parameter changes.
The split is atomic. There is no batch process, no off-chain accounting, no discretionary timing. When a trade milestone passes or a token settlement clears, the Fee contract computes the fee, the burn contract destroys the burn half in $EDM (converting from $EDSD if the fee was prepaid in stable), and the TreasurySplitter routes the treasury half to the five buckets in a single transaction. Every receipt and proof page shows the fee line, the burn hash, and the per-bucket ledger lines.
Why the 50 percent burn is non-negotiable
The 50 percent burn is the structural mechanism that links protocol use to token supply contraction. Every transaction reduces $EDM supply; the rate of supply reduction tracks volume on the rail. Without a contract-enforced burn, governance could (in principle) divert fees away from supply reduction, breaking the link between use and scarcity. The protocol forecloses this possibility by making the burn half a contract constant rather than a votable parameter.
The burn half cannot be discounted, deferred, rebated, or routed elsewhere. Rebates, program incentives, staking rewards, and ecosystem grants all draw exclusively from the treasury half. This separation means that promotional pricing for high-volume corridors, partnership credits for strategic suppliers, and any future fee-reduction programs do not weaken the burn floor. The burn is the protocol's commitment to long-term holders; the treasury half is the operational budget that funds the rail.
When and how the split executes
Trigger events. The split executes when a transaction proves out. For trades, this means a milestone Release (the slice flipping from Locked to Unlocked $EDSD). For tokens, this means a Settle or Retire event. There is no batched processing; every event computes and executes its own split in the same transaction.
Fee computation. For trades, the fee is 0.5 percent of the released amount, consumed from prepaid escrow (with per-tranche caps applied). For tokens, the fee is 4 percent of the settlement amount, split 2 percent buyer / 2 percent seller. The fee constants and caps are governance-set parameters in the Fee contract.
Burn execution. The burn half executes in $EDM. If the fee was prepaid in $EDSD or USD, the burn contract converts the burn half to $EDM at the release block before destroying it. The burn transaction emits a FeeBurned event with the reference, fee amount, burned $EDM amount, and burn transaction hash.
Treasury routing. The treasury half transfers to the TreasurySplitter contract, which divides the amount across the five buckets using the current governance-set weights. A single TreasuryRouted event emits with the reference, claim ID, and the per-bucket amounts (attestors, ops, builders, ecosystem, stakers). Bucket recipients can then claim their share according to the bucket's distribution policy (SLA-weighted for Attestors, ratable for Ops, governance-allocated for Builders/Ecosystem/Stakers).
Worked examples
Trade On-Board tranche. A $3,960,000 milestone release generates a 0.5 percent fee of $19,800. The burn half ($9,900) destroys in $EDM immediately. The treasury half ($9,900) routes to the five buckets at default weights: Attestors 40% = $3,960, Network ops 25% = $2,475, Builders 20% = $1,980, Ecosystem 10% = $990, Stakers 5% = $495. Total: $9,900 across five buckets plus $9,900 burned, equal to the $19,800 fee.
Token retirement. A retirement of 500 carbon credits at $18 per tonne generates gross settlement of $9,000 and a 4 percent fee of $360. The burn half ($180) destroys in $EDM. The treasury half ($180) routes to: Attestors $72, Ops $45, Builders $36, Ecosystem $18, Stakers $9.
Rounding. The smallest atomic unit rounds down at each bucket. The residual carries to the Network ops bucket and posts to the ledger as a separate line item. This ensures total fee equals burn plus treasury exactly, with no accounting discrepancy across the receipt.
Continue exploring EDMA economics
For the canonical fee rates that produce this split, see Fee schedule. For per-shipment revenue math, see Unit economics. For macro demand drivers that scale volume through the rail, see Demand drivers. For the burn mechanism in the context of the broader $EDM supply curve toward the 100M target, see Tokenomics; for the protocol token itself, see $EDM.
