PAPER Token Emissions — Loss-Backed Minting
Why PAPER exists, how traders mint it and why the emission rate is highest early in the LP lifecycle.
A fair launch by construction
The project documentation describes PAPER as starting at zero supply with no pre-mint, team allocation, VC allocation, airdrop or vesting schedule.
Why PAPER exists
PAPER is the protocol LP-revenue claim token. Staking PAPER gives the holder a pro-rata claim on the documented USDC staking revenue streams.
How PAPER is minted
Eligible losing closes and liquidations mint PAPER. Larger eligible losses produce more PAPER at the mint rate active when the loss settles.
When the rate is highest
While tracked LP is below the $2M threshold, including underwater states, the documented flat rate is 100 PAPER per $1 of eligible loss basis.
Above the flat threshold, the mint rate decays as the tail high-water mark grows.
Related Papertrade Guides
Frequently Asked Questions
When is PAPER minted?
The documentation ties PAPER minting to eligible realized loss basis and liquidation outcomes.
Does PAPER have a pre-mint in the documented model?
The docs describe a fair launch with supply beginning at zero rather than a conventional pre-mint allocation.
Does the mint rate stay constant forever?
No. The documented mint curve includes a flat region and a later ratchet or decay region.