Paper Emissions
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.