# Revenue Share

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Revenue allocated to buy and burn vlPEAS functions as a backing-based yield mechanism, similar to how Pod tokens (pTKN) accrue value. When vlPEAS is burned, it reduces the supply of outstanding vlPEAS while leaving the underlying PEAS untouched. As a result, each remaining vlPEAS represents a larger share of the underlying PEAS tokens.

This process increases the claimable PEAS backing per vlPEAS, providing holders with non-emissive, protocol-native yield in the form of value accrual.

This structure has several key properties:

**Backed Yield**:\
vlPEAS holders earn PEAS-denominated yield as the collateral backing ratio (PEAS per vlPEAS) increases with every vlPEAS burn.

**Non-Dilutive**:\
No new vlPEAS or PEAS are minted as the yield is derived purely from treasury growth and vlPEAS supply reduction.

**Governance Aligned**:\
Since vlPEAS represents both voting power and yield from Treasury-assigned revenue, its value increases in tandem with protocol usage.

The percentage of revenue allocated to these burns is governance-controlled, allowing vlPEAS holders to balance direct yield accrual with other strategic deployments. This system transforms vlPEAS into a PEAS-yielding governance token, where participation is rewarded through growing backing as opposed to the inflation model that is common amongst governance tokens.