Split

Core principle: Every protocol fee is split once, at the moment proof clears:

• Burn half (50%): destroyed in EDM immediately; burn tx hash lands on the receipt & proof page.

• Treasury half (50%): routed on-chain to program buckets via TreasurySplitter. Burn is never discounted. Rebates, staking, or grants can only come from the treasury half.

A) Buckets & defaults

Bucket	Default	Bounds (min–max)	Notes
Attestors (verifiers)	40%	25–60%	SLA-weighted per role (latency/accuracy/uptime); the public claim “verifiers earn 40%” refers to 40% of treasury half (i.e., 20% of total fee)
Network ops	25%	15–40%	Sequencer/SRE, monitoring, incident response, explorer, status pages
Builders	20%	10–30%	Grants for SDKs, connectors, proof tooling, audits
Ecosystem	10%	0–20%	Community, integrations, education, compliance enablement
Stakers (veEDM)	5%	0–15%	Epoch rewards to veEDM; never sourced from burn half

The split is changed by a governance proposal → 72h timelock → on-chain execution. Rate-limits prevent large jumps in one vote.

B) When & how the split executes (exact moment)

• Event proves out:

  • Trade: milestone Release (Locked→Unlocked EDSD)

  • Tokens: Settle/Retire

• Fee computed:

  • Trade: 0.5% of released amount (per-tranche cap), consumed from prepaid escrow

  • Tokens: 4% of settlement

• Burn half executed in EDM (convert burn-half from EDSD/USD if needed)

• Treasury half sent to TreasurySplitter → routed to buckets with a single TreasuryRouted event

Receipts: show fee line (gross, cap note if any), burn hash, and a per-bucket ledger line in Explorer.

C) Examples

• Trade — On-Board tranche: Released $3,960,000 → fee $19,800

  • Burn = $9,900 EDM

  • Treasury half = $9,900 → split by defaults:

  • Attestors 40% = $3,960

  • Network ops 25% = $2,475

  • Builders 20% = $1,980

  • Ecosystem 10% = $990

  • Stakers 5% = $495

• Tokens — retire 500 t @ $18: Gross $9,000 → fee $360

  • Burn = $180 EDM

  • Treasury half = $180 → Attestors $72, Ops $45, Builders $36, Ecosystem $18, Stakers $9

• Rounding: smallest atomic unit rounds down; the residual is carried to Network ops and logged.

D) Accounting & transparency

• Per-event: FeeBurned(ref, fee, burnedEdm, burnTx) + TreasuryRouted(ref, att, ops, bld, eco, stk)

• Per-epoch: bucket totals (weekly by default) published in Explorer with CSV export

• Per-order (Trade): escrow reconciliation—escrow_start − Σ(stage_fees) = escrow_end (100% required)

• Audit: burns are real EDM txs; splits are on-chain transfers; both tie back to the proof page via ref and claim_id

E) What the split can and cannot fund

• Can (from treasury half only): Attestor SLA rewards; SRE/infra; audits/bug bounties; SDKs/connectors; ecosystem grants; staking epoch rewards; compliance enablement.

• Cannot: Burn half is sacrosanct—no rebates or rewards draw from it. Gas is not a fee and never burns. No retroactive change to past events: split applies forward-only from effective_from.

F) Rebates, staking, and credits

• Rebates/discounts (if used): debit only the treasury half and respect per-org caps; burn is untouched.

• Staking rewards (veEDM): stream per epoch from the Stakers bucket; DAO sets share within bounds.

• Operational credits: (e.g., fee credits to strategic partners) are budgeted from Ecosystem/Builders buckets; they never reduce the burn.

G) Treasury interest

• While Locked EDSD sits on the rail: EDMA places ~75% of each tranche in short-dated T-bills and ~25% in cash (70–100 days typical).

• PoR: daily snapshots (hash on-chain), reserve ladder, and bank/custodian attestation trail.

• Interest posts as Treasury Interest on the ledger and can be appropriated by governance (e.g., to Ops/Attestors/Builders).

• Interest is not part of the protocol fee and does not alter burns.

H) Governance controls

• Update bucket percentages within bounds; set epoch length; choose distribution formulas (e.g., SLA weights for Attestors; veEDM curve for Stakers).

• Publish public diffs and effective_from in ParameterStore; 72h timelock; small step sizes per vote.

• Never votable: fee constants/caps, 50% burn, No-EMT/No-funding leaks, One-Claim, or bypassing Locked→Unlocked rules.

I) KPIs tied to the split

• Burn coverage: 100% of settle/release events burn exactly 50% (receipt has burn hash)

• Treasury routing freshness: 100% events emit TreasuryRouted within the block

• Attestor payout SLA: per-epoch distributions on time; SLA-weighted fairness (top vs bottom decile spread)

• Ops runway: months of coverage from Ops bucket vs target

• Grant throughput: Builders/Ecosystem awards executed vs plan; impact metrics per grant

• Staking APR: reported per epoch (sourced from Stakers bucket only)

Plain recap

Every protocol fee splits once: 50% burns in EDM right now, the other 50% funds the rail. Attestors get a meaningful share of the treasury half (default 40%), Ops keeps the lights on, Builders/Ecosystem grow the pie, and Stakers participate—never at the expense of burns. It’s simple to reason about and trivial to audit: proof → fee line → burn hash → TreasuryRouted—and you can see exactly where every unit went.