C1. Fees & Burn
Core Principle
Fees are small, predictable, and tied to proof. The platform charges only when value actually settles—never before. Half of every protocol fee is burned in EDM at the moment proof clears. Gas fees are minimal, pass-through, and not included in the burn.
What “Protocol Fee” Means
The protocol fee is the settlement fee the platform earns at the moment a trade settles (Tokens Marketplace) or a milestone releases (Trade Marketplace):
Buyer pays in EDSD; the fee is accounted in EDM (or converted to EDM at release if prepaid in EDSD/USD).
50% of each protocol fee is burned in EDM at the event; the other 50% funds attestors, network ops, builders, and ecosystem.
No protocol fees on listings, holds, or drafts.
Tokens Marketplace — How It Works
Most actions are Buy or Retire. The fee appears once, at settlement.
Protocol fee: 4% per settlement (default split 2% buyer + 2% seller).
Burn: 50% of that 4% burns in EDM at settlement (burn hash on receipt).
Settlement currency: buyer pays in EDSD; balances appear immediately.
If proof is revoked before settlement: the listing freezes and no fee is charged.
Gas: pass-through, tiny, auto-handled in EDM/EDSD; never burned.
Trade Marketplace — How It Works
Money releases only on proof: No EMT, no funds. The fee is pre-paid at award so operations never wait on invoices; burns happen stage-by-stage as slices release.
Protocol fee: 0.5% per paid milestone, capped per tranche
≤ $1M → $5,000 cap
$1–5M → $25,000 cap
> $5M → $50,000 cap
Buyer pre-pays the total (sum of capped stages) at award in EDM or EDSD/USD.
50% of each stage’s fee burns in EDM at that milestone (if prepaid in EDSD/USD, burn half is converted at release).
Buyer’s balance sits as Locked EDSD by supplier and stage; a release flips that slice to Unlocked EDSD and pays the same day.
If a gate fails: release waits; no burn posts for that stage until the EMT mints.
Seller-side platform fees (Trade): These are separate from protocol fees and not burned:
1% funded-on-proof assignment (in-platform): When the seller assigns Locked EDSD to whitelisted partners. Applies only when the assignment settles at the linked milestone.
0.5% cash-out (off-platform): When the seller redeems Unlocked EDSD to a bank after schedule completion.
Treasury handling while locked: About 75% of each Locked EDSD tranche sits in short-dated T-bills during the program window (≈70–100 days); 25% remains cash for operations. Interest appears as Treasury Interest in the ledger. Proof-of-Reserves and daily summaries enable auditor verification.
Fees & Burn — Tokens vs Trade (Side-by-Side)
Aspect
Tokens Marketplace
Trade Marketplace
What triggers the fee
A settlement (Buy / Retire)
A milestone release (EMT mints)
Protocol fee
4% total per settlement
0.5% per milestone
Who pays
Default 2% buyer + 2% seller
Buyer pre-pays total at award; economics per MPA
Caps
N/A
≤ $1M → $5k, $1–5M → $25k, > $5M → $50k
When fee is paid
At settlement
Pre-paid at award (sum of capped milestones)
When burn happens
At settlement (50% of that fee)
At each milestone (50% of that stage’s fee)
Burn token
EDM (direct)
EDM (convert burn half at release if prepaid in EDSD/USD)
Settlement currency
Buyer pays in EDSD
Slices release in EDSD (Locked → Unlocked)
Funds state
N/A
Locked EDSD pre-assigned by stage; becomes Unlocked EDSD on proof
Seller extras
None
1% funded-on-proof assignments; 0.5% off-platform cash-out
Treasury interest
N/A
Earned on Locked EDSD (T-bills); reported in ledger
Gas
Tiny, pass-through (EDM/EDSD), never burned
Tiny, pass-through (EDM/EDSD), never burned
Proof guardrail
PoV at listing & settlement
PoV + EMT per milestone (No EMT, no funds)
Transparency You Can Point To
Every settlement (Tokens) and every release (Trade) produces a human-readable receipt and a public proof page. You see the proof link, the amount, the fee, the treasury half, and the burn hash for that event. In Trade, you also see the state of Locked/Unlocked EDSD, any assignment/cash-out fees, and cumulative treasury interest.
Plain Recap
Tokens: 4% per trade/retire, 50% burned at settlement.
Trade: 0.5% per milestone (capped), pre-paid at award, 50% burned at each release.
Seller extras (Trade): 1% on funded-on-proof assignments; 0.5% on off-platform cash-out at completion.
Gas: tiny, pass-through, never burned.
All of it is visible in the ledger—fee, burn, treasury half, assignment/cash-out, and treasury interest—so finance and audit never guess.
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