📢 Flash
Papertrade has no plans to enable transferability of its PAPER token and will adjust its fee structure and token minting mechanism.
On October 20, Papertrade issued a statement confirming that no external transfer of the PAPER token contract is currently planned. The team also announced upcoming optimizations to its short-term trading fee structure and token issuance mechanism. It noted that the design of PAPER perpetual contracts may expose the protocol’s funding pool solvency to short-side risk—external short exposure could amplify potential gains from manipulation attacks, which fall entirely outside the protocol’s control.
The fee adjustments will be rolled out in phases and will apply only to trades where the difference between the closing and opening price is within either 0.06% or 0.1%, depending on the time window; trades exceeding this threshold will retain the original fee schedule. Backtesting against historical data since launch shows these changes suppress bot strategy profitability roughly 15× more than they affect regular traders—and may also pave the way for future increases to the open interest cap.
Regarding token issuance rules, the system will mint new PAPER tokens equivalent to approximately 0.1% of the total circulating supply for every $1 million in losses incurred. The exact minting ratio will be determined by a rate parameter set during contract upgrades. Once the funding pool approaches or enters an insolvent state, the legacy “100 PAPER minted per $1 loss” fixed-rate mechanism will be discontinued in favor of a time-weighted, progressively increasing multiplier model. The team emphasized that, over the long term, this mechanism will continuously dilute early holders’ share of the total supply, granting relatively higher equity weightings to more recent participants.
This upgrade will also deploy a builder toolkit—initially available only to whitelisted users—and refactor certain contract permission configurations to defend against malicious gas-exhaustion attacks. The team clarified that a separate announcement will follow once the upgrade proposal enters the timelock phase; the rollout is scheduled for within 24 hours after timelock expiry—but final implementation remains contingent upon passing the final security audit.
The fee adjustments will be rolled out in phases and will apply only to trades where the difference between the closing and opening price is within either 0.06% or 0.1%, depending on the time window; trades exceeding this threshold will retain the original fee schedule. Backtesting against historical data since launch shows these changes suppress bot strategy profitability roughly 15× more than they affect regular traders—and may also pave the way for future increases to the open interest cap.
Regarding token issuance rules, the system will mint new PAPER tokens equivalent to approximately 0.1% of the total circulating supply for every $1 million in losses incurred. The exact minting ratio will be determined by a rate parameter set during contract upgrades. Once the funding pool approaches or enters an insolvent state, the legacy “100 PAPER minted per $1 loss” fixed-rate mechanism will be discontinued in favor of a time-weighted, progressively increasing multiplier model. The team emphasized that, over the long term, this mechanism will continuously dilute early holders’ share of the total supply, granting relatively higher equity weightings to more recent participants.
This upgrade will also deploy a builder toolkit—initially available only to whitelisted users—and refactor certain contract permission configurations to defend against malicious gas-exhaustion attacks. The team clarified that a separate announcement will follow once the upgrade proposal enters the timelock phase; the rollout is scheduled for within 24 hours after timelock expiry—but final implementation remains contingent upon passing the final security audit.
