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)
That code snipped does not destroy anything. It does show in a comment that the coins are to be destroyed, but the printf statement only prints the formatted variable, it does not achieve anything like destruction. Also, this code snippet is only activated if the fDebug variable is TRUE; presumably for test purposes not for live wallet.