PAPER Mint Curve — Emissions Rate & Tokenomics
The flat-then-ratchet curve that turns eligible realised loss basis into PAPER supply.
Flat region
While tracked LP is below the documented $2M threshold, including negative states, the flat mint rate is 100 PAPER per $1 of eligible loss basis.
Ratchet region
Once the threshold is reached, the rate decays using a high-water mark of cumulative tail-region gain. The docs express the rate as flatRate × (S / (S + H))² with S set to the tail-decay scale.
Strict high-water mark
Staker distributions can reduce tracked LP but do not reverse tailProgressUsd. Once the emission rate has decayed because the high-water mark advanced, that decay is not reset by a later LP drain.
What counts as loss basis
The mint basis follows eligible realised loss accounting. Solvent loss fees can reduce the LP-credited basis, while insolvent losses and liquidations follow the documented queue and liquidation rules.
Related Papertrade Guides
Frequently Asked Questions
What is the PAPER flat mint region?
The documented curve uses a flat emission rate while tracked LP remains below the defined threshold.
What happens after the threshold?
The mint rate enters a ratchet or decay region based on the documented high-water-mark mechanics.
Can later LP reductions reset the high-water mark?
The documentation describes the tail progress high-water mark as not reversing simply because tracked LP later declines.