Papertrade has no plans to enable transferability of the PAPER token, and will adjust its fee structure and token minting mechanism.

Papertrade issued a statement saying there are currently no plans to open transfers of PAPER tokens outside the contract, and will adjust short-term trading fees and the token issuance curve. The team believes PAPER perpetual contracts would expose the fund pool’s solvency to short selling, as external short positions may boost returns on manipulation attacks in these protocol-uncontrolled markets. The fee adjustment will be implemented in phases, only affecting trades where the closing price is within 0.06% or 0.1% of the opening price; trades exceeding the respective thresholds will retain their original fees. Based on backtesting data since launch, the team added, these adjustments impact bot strategy profitability roughly 15 times more than that of regular traders, and are expected to create room for relaxing open interest limits. On the token issuance front, going forward, for every $1 million in losses, tokens equivalent to 0.1% of PAPER’s current supply will be minted, with the exact rate dependent on the minting speed during contract upgrades. When the fund pool approaches or enters an insolvent state, it will no longer mint 100 PAPER per $1 in losses, instead adopting a time-increasing weighted multiplier mechanism. The team noted that in the long run, the new mechanism will gradually dilute the share of early holders, benefiting recent users. This upgrade will also introduce builder code initially restricted to whitelisted addresses, and adjust some contract permissions to guard against gas consumption attacks. The team will issue a separate announcement when the upgrade enters timelock, with plans to roll it out within 24 hours thereafter, pending final security checks.