Buyback and burn

Kiln uses the fees it earns to buy $KILN on the open market and burn it: destroy it permanently, so the total supply shrinks. This page explains where the money comes from, how each buyback works, and how you can check every one.

Where the money comes from

Two fee streams feed the buyback.

Stream Source Paid in
GPU rental fees 2.5% of every payment a provider receives for proven GPU time. The Kiln program sends it to the treasury automatically, as part of settlement. USDC
Token trading fees pump.fun pays a token's creator a share of the trading fees on that token. Kiln's share goes to the treasury. SOL

The first stream grows with usage: every hour of GPU time rented on Kiln adds to it. The second grows with trading: activity in $KILN itself adds to it. Both end in the same place.

How a buyback works

  1. Collect. Fees build up in the treasury wallet, whose address is shown on the Transparency page.
  2. Buy. The treasury swaps those fees for $KILN on the open market through Jupiter, Solana's swap router, which finds the best price across exchanges.
  3. Burn. In the same transaction, the $KILN bought is burned using Solana's token program. Burned tokens are removed from the supply permanently; nobody can recover or re-mint them.

Because the buy and the burn happen in one transaction, the treasury never holds the bought $KILN. It can't be sold back or moved anywhere else.

 GPU rentals ──2.5% USDC──┐
                          ├──▶ Treasury ──swap via Jupiter──▶ $KILN ──burn──▶ gone
 $KILN trading ──fees─────┘

How often

Buybacks run on a regular schedule, and each one is published as it happens. The cadence and any minimum batch size are listed on the Transparency page.

How to check it yourself

You don't need to take anyone's word for it:

  • The fee: the 2.5% protocol fee is read live from the Kiln program on the Transparency page. The program caps it at 20%.
  • The treasury: its address and balance are public. Anyone can watch fees arrive.
  • Each burn: every buyback is a public Solana transaction showing the swap and the burn together.
  • The total: the token page reads $KILN's current supply from the chain and shows how much has been burned against the 1,000,000,000 created at launch.

Why it matters

Kiln's fees come from real usage: people paying for GPU time. Routing those fees into buying and burning $KILN ties the token directly to the network doing useful work. More GPUs rented means more fees, more buybacks, and less $KILN in circulation.

Good to know

  • Buybacks use fees the protocol has already earned. They are never funded by new tokens.
  • The amount burned depends on fees earned and on the market price at the time of each buyback.
  • Burning reduces supply, but it doesn't guarantee any price. Nothing on this page is financial advice.
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