Economic Model
Intended ModelHow stock mint/redeem fees and perp trading fees connect to the ambition for EDEL buybacks.
Two Products. Two Fee Streams. One Connected Model.
Edel's intended economic model brings together mint and redeem fees on stock tokens and perp trading fees. The On-Chain Margin Layer connects the activities behind those fees: stock issuance provides assets that could be used as collateral for trading.
The objective is for greater activity across the two products to generate fees that can support more EDEL buybacks. This page explains that intended relationship. It is not a published fee schedule or a confirmation of current buyback execution.
Where the Fees Come From
The intended model has two core fee sources. They arise from different operations and should be understood separately.
| Activity | Intended fee source | Scope |
|---|---|---|
| Stock token minting and redemption | Mint / redeem fees | Primary issuance and cash redemption by approved participants. Exact rates and terms are not published here. |
| Perpetual futures trading | Perp trading fees | Trading activity on planned Edel Markets. Maker/taker rates, discounts and contract-specific terms are not published here. |
How the Fee Streams Combine
Two fee sources. One connected ecosystem.
Mint / redeem fees
Fees associated with primary issuance and redemption activity.
Perp trading fees
Fees associated with perpetual futures trading activity.
On-Chain Margin Layer
Connect stock issuance and perp trading within the intended economic model.
Capacity for EDEL buybacks
Dependent on product activity and the economic model's implementation.
Stock mint/redeem activity + perp trading activity = two fee streams within one connected ecosystem.
An approved participant's primary mint or redemption can generate a stock-side fee under the intended model. Separately, trading perps on Edel Markets can generate trading fees. The Margin Layer connects the asset and trading use cases, allowing both activities to contribute to the economics of the combined system.
For example, stock tokens could enter circulation through primary issuance, pass to a holder on a supported secondary market and later be used as eligible collateral for perp trading. Stock-side and trading-side fees arise at their respective operations.
This is what fees stacking means here. It does not mean every perp trade requires a new mint or redemption, every user pays both fees on every trade, or a separate third margin-layer fee has been specified.
From Fee Generation to EDEL Buybacks
The intended link is more fee generation → greater capacity for EDEL buybacks. Buybacks mean purchases of the EDEL ecosystem token; they are distinct from cash redemption of an Edel Stock.
The aim is to connect product usage with demand for EDEL through buybacks. How much fee revenue is available for that purpose depends on actual activity, costs and the allocation policy. Greater volume does not automatically translate into a fixed buyback amount.
These docs do not specify an allocation percentage, execution cadence, minimum amount, automation mechanism, or whether repurchased tokens are held or burned. They also do not establish a contractual entitlement to revenue for tokenholders or guarantee a token-price outcome.
Model Status and Parameters
This is the intended economic model for the connected Stocks, Markets and Margin Layer vision. Edel Markets and stock-backed perp trading remain planned. The existence of live Stocks does not confirm that every part of this fee or buyback model is operating today.
| Defined direction | Parameters still to be published |
|---|---|
| Mint / redeem fees on stock tokens | Rates, minimums, exemptions and charging terms. |
| Perp trading fees | Maker/taker schedules, discounts and contract-specific terms. |
| Combined activity through the Margin Layer | Collateral and risk specifications, eligibility and launch timing. |
| Fee generation supporting EDEL buybacks | Revenue allocation, execution policy, cadence, amounts and treatment of repurchased tokens. |