I'm no C expert, but if you look at main.cpp, lines 1716-1719, there is this comment and debug code (?):
// paycoin: fees are not collected by miners as in bitcoin
// paycoin: fees are destroyed to compensate the entire network
if (fDebug && GetBoolArg("-printcreation"))
printf("ConnectBlock() : destroy=%s nFees=%"PRI64d"\n", FormatMoney(nFees).c_str(), nFees);
Maybe it gets someone closer to answering your question for sure. Thanks for your articles.

Nice, that does help a lot. From my very basic understanding, it looks like fees are destroyed, but I am unsure. Particularly about the PRI64d\n part. I see PRI64d in other PoS coins by doing a simple google search and a few more times in the code. My guess is it is somehow related to CoinAge, but again, I am really speaking out of my element here. (like, so much so, I am sure someone will come here and tell me how much of an idiot I am any second)