Unit economics
What “unit economics” means here: A unit is one value-realizing event:
Tokens: a settlement (Buy) or a retirement (Retire).
Trade: a release (the moment an EMT flips Locked EDSD → Unlocked EDSD).
For each unit: who pays what, how much EDM burns, what the treasury receives, and the net flows to buyer/seller/attestors—using only the rules you’ve set.
Settlement law remains constant: No EMT, no funds · Must-fund before shipping · One-Claim · Locked→Unlocked only on proof · 50% of every protocol fee burns in EDM.
A) Tokens unit (Energy / Carbon / Attributes)
Fee & burn: Protocol fee = 4% of settlement amount (default split 2% buyer + 2% seller). Burn = 2% of GMV (= 50% × 4%) in EDM, executed in the same tx; burn hash on the receipt. Treasury half = 2% of GMV routed to buckets (Attestors/ Ops/ Builders/ Ecosystem/ Stakers).
Money in/money out (default split): Buyer pays: Price × (1 + 0.02); Seller receives: Price × (1 − 0.02)
Numerical snap: Settle/Retire $10,000 of tokens → fee $400 → burn $200 EDM, treasury $200. Treasury default split on $200: $80 Attestors (40%), $50 Ops (25%), $40 Builders (20%), $20 Ecosystem (10%), $10 Stakers (5%).
Takeaway: Every $1.00 of Tokens GMV burns $0.02 worth of EDM at the event and funds $0.02 to the treasury buckets.
B) Trade unit (per-milestone Release)
Fee & burn: Protocol fee = 0.5% of the released amount, capped per tranche ( $1M → $5,000 cap, $1–5M → $25,000 cap, > $5M → $50,000 cap). Burn = 0.25% of release (= 50% × 0.5%) until a cap binds; at very large tranches the effective burn rate falls below 0.25%. Buyer pre-pays total capped stage fees into a fee escrow at award; the seller’s cash release is not haircut by protocol fees.
Tranche amount
Fee rule
Burn
Burn ÷ Tranche
≤ $1,000,000
0.5% of A
0.25% of A
0.25%
$2,000,000
0.5% (= $10,000)
$5,000
0.25%
$6,000,000
0.5% (= $30,000)
$15,000
0.25%
$10,000,000
0.5% (= $50,000)
$25,000
0.25%
$12,000,000
Capped $50,000
$25,000
0.208%
$40,000,000
Capped $50,000
$25,000
0.0625%
Numerical snap (per $1M released): Fee $5,000 → burn $2,500 EDM → $2,500 to treasury split (≈ $1,000 Attestors at 40%).
Takeaway: For typical tranches (≤ $10M) Trade burns ~0.25% of released value at each gate; beyond $10M per tranche, the cap lowers the effective burn rate.
C) End-to-end order (Trade) — what everyone sees
Example: $6.6M order with 20/60/20 schedule
Pre-Ship $1.32M → fee $6,600 (burn $3,300; treasury $3,300)
On-Board $3.96M → fee $19,800 (burn $9,900; treasury $9,900)
Arrival $1.32M → fee $6,600 (burn $3,300; treasury $3,300)
Totals: fee $33,000 (≈ 0.5% of order) → burn $16,500 EDM (≈ 0.25% of order) + $16,500 treasury.
Incidence & seller net: Buyer funds the fee escrow at award; seller receives full tranche amounts at each release. Seller optional costs (only if used): 1% on funded-on-proof assignments that settle; 0.5% cash-out off-platform at schedule completion.
D) Platform unit economics (who earns what, per unit)
Tokens — $X settlement: Protocol fee: 4% X → 2% X burn + 2% X treasury. Attestors (40% of treasury): 0.8% X. Ops (25%): 0.5% X. Builders (20%): 0.4% X. Ecosystem (10%): 0.2% X. Stakers (5%): 0.1% X.
Trade — $A release (uncapped): Protocol fee: 0.5% A → 0.25% A burn + 0.25% A treasury. Attestors (40% of treasury): 0.10% A. Ops (25%): 0.0625% A. Builders (20%): 0.05% A. Ecosystem (10%): 0.025% A. Stakers (5%): 0.0125% A. (If caps bind, replace “0.25% A” treasury with min(0.25% A, cap/2) and recompute.)
Operational fees (if used): 1% assignment → booked to platform (non-burn) when the linked milestone settles. 0.5% cash-out → booked to platform (non-burn) at schedule completion.
Treasury interest (separate): While funds are Locked EDSD, ~75% sits in short-dated T-bills, ~25% cash. Interest posts as Treasury Interest (governance decides use). It does not alter burns.
E) User unit economics (what a buyer/seller can model)
Tokens (default 2%/2%): Buyer cash out: Price × 1.02. Seller cash in: Price × 0.98. Network burns: Price × 0.02 in EDM. Network funds: Price × 0.02 to treasury buckets.
Trade: Buyer pays protocol fee (pre-paid into escrow), plus tranche funding; fee does not haircut releases. Seller receives the full tranche at release; optional 1% assignment and 0.5% cash-out may apply.
Gas: L2 execution & blob DA are cents-level and pass-through; gas never burns.
F) EDM burn per $ GMV (rules of thumb)
Tokens: 2.0% of GMV (always, at each settle/retire).
Trade: ≈ 0.25% of released value for tranches ≤ $10M; for > $10M per tranche, burn = $25k / tranche, so rate = 25k ÷ tranche.
Combined (mixed activity): Burn ≈ 0.02 × Tokens GMV + (0.0025 × Trade GMV≤10M per tranche + ∑ 25,000 ÷ tranche_i (> $10M)). Use this to translate volume forecasts into EDM retirement demand.
G) Sensitivities & levers
Tranche sizing (Trade): keeping tranches ≤ $10M preserves the 0.25% burn rate; ultra-large tranches dilute burn rate due to caps.
Incidence (Tokens): shifting the default 2%/2% split changes buyer/seller nets, not the total fee or burn.
Assignment & cash-out usage: opt-in; raise platform take without touching burns.
Treasury split: within bounds, reallocates the treasury half (e.g., to Attestors) without changing fee or burn.
DeFi (Phase 4+): Supplier Advance costs 3–4% APR but reduces seller WCR; sweeps from Unlocked keep default unit economics intact.
H) Worked one-pager (copy to investor decks)
Gloves order $6.6M (20/60/20) → protocol fee $33k, burn $16.5k EDM, $16.5k to treasury.
Retire 500 t @ $18 → protocol fee $360, burn $180 EDM, $180 to treasury.
Attestors earn 40% of treasury half (i.e., 20% of total fee): $3,300 on the $6.6M order; $72 on the 500-t retirement.
Gas is cents; EDSD PoR posted daily; receipts include PoV hash, claim id, and burn hash every time.
Plain recap
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