For everyone / Fee sharing
Gas fees and staking
What the chain distributes is what remains after it has paid for itself. Stakers receive a share of that in ETH, never in PKL: when the chain earns little, stakers earn little, and there is no floor.
The net basis
Every action on the chain pays a small fee in ETH. Before any of that is handed out, the chain pays its own bills: writing to Ethereum, storing the data, running the machines, paying for security. Whatever is left is shared out in fixed proportions, and the biggest slices go to buying back and destroying PKL and to paying people who have locked up their PKL. Nobody gets paid in freshly printed PKL, ever.
Every transaction pays gas used times gas price, in ETH, from the sender. There is no base-fee burn: the entire fee is credited to the block beneficiary and then split inside the same transaction. What the chain distributes is what remains after it has paid for itself: gas fees, less settlement, data availability, operations and security, floored at zero. Distributing from a gross base would pay out money the chain owes to Ethereum, so the netting is structural rather than a policy a treasury applies afterwards.
The split runs on all three execution paths, native transfer, ERC-20 fast path and general EVM, with the shares summing back to the fee exactly so that no wei is created or stranded. The proportions are protocol constants rather than operator settings, and the destination addresses are resolved once per process, so the split cannot change under a running chain and fork a replica. The net base is max(0, fees minus settlement, data availability, operations and security).
The split
| Share | Destination |
|---|---|
| 40% | PKL buybackETH, converted to PKL and burned; reduces total supply, not circulating supply during vesting |
| 30% | PKL stakerspaid in ETH |
| 20% | Treasurypaid in ETH |
| 10% | Security and insurancepaid in ETH |
The 40 percent buyback reduces PKL's total supply, not its circulating supply during the vesting years. The buyback and burn page gives the mechanism and the arithmetic that goes with every mention of it.
The staking contract
Staking is a fee-share vault. It does not produce blocks, does not secure the chain, has no slashing, and is not a validator bond. A holder stakes PKL; incoming ETH is accounted with a per-share reward index; the holder claims ETH; unstaking starts a seven-day unbonding period after which the PKL can be withdrawn.
- All value-moving entry points are non-reentrant.
- If a reward payout fails, the amount moves to a deferred balance for that staker rather than blocking anyone else.
- If ETH arrives while nothing is staked, it is forwarded to the treasury rather than stranded.
- Staked PKL is also the voting asset for governance; the unbonding period is what makes a flash-loan vote expensive.
Never PKL emissions
A yield paid in the staked asset is a transfer from non-stakers
Stakers never receive PKL emissions. When the chain earns little, stakers earn little; there is no floor, and interfaces display realised historical distributions only, never a projected rate.
Scale, and break-even
The whitepaper models three activity levels and publishes, for each, gross gas revenue, a modelled cost base, the net that remains, and what flows to the buyback and to stakers. It also publishes the number of transactions per day the chain needs to cover its own costs at that cost base, because a chain unwilling to state its break-even is asking to be taken on faith. Below break-even, the treasury subsidises operations. Every one of those figures rests on the assumptions listed on the limits page, and a reader who disagrees with one should expect the result that depends on it to move.