Mint curve

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.