Is Paper Trade Soft? On October 20th, Papertrade suddenly announced that there are currently no plans to open the transfer of PAPER tokens. This means that the PAPER mined by users through trading losses cannot be freely sold in the short term. As soon as the news came out, Paragon immediately suspended trading of PAPER perpetual contracts, and Aster also announced the delisting of related pre market contracts. one ️⃣ Why not allow PAPER to circulate? Due to Papertrade allowing users to directly bet against the protocol fund pool, losses can be earned in PAPER tokens, which can be pledged and shared with the protocol's USDC earnings. But if PAPER can short in the external market, attackers may manipulate BTC and ETH prices to profit from the fund pool while shorting PAPER to earn profits from token declines, making the attack more profitable. In addition to temporarily suspending circulation, the team also announced two adjustments: 1. Increase short-term arbitrage costs: Adjust the closing fees within the small fluctuation range, mainly targeting high-frequency robot strategies. 2. Revise the PAPER issuance rules: For every $1 million eligible transaction loss in the future, approximately 0.1% of the current supply of PAPER will be issued, gradually diluting the early holders' share of earnings in the long run. two ️⃣ Trading mining for eight years, Papertrade has played a new trick again Papertrade's loss mining actually reminds me of FCoin in 2018 and later ZKFair. At that time, FCoin launched "trading as mining", where users paid transaction fees to receive FT, and holding coins could also share 80% of the exchange's revenue. Later, ZKFair moved this gameplay to L2, where users consume Gas to obtain ZKF, pledge it, and share the profits from network fees. Nowadays, Papertrade has changed its gameplay: directly turning trading losses into PAPER, pledging and sharing the benefits of the agreement. The problem is that how much the user loses does not necessarily mean how much the agreement ultimately earns. PAPER can continue to issue shares with losses, but the distributable income may not necessarily increase synchronously. In 2018, CZ evaluated FCoin's trading mining as a "disguised ICO, and a high priced ICO". He also pointed out at the time that transaction mining is essentially a way of selling coins, and whether the platform has long-term value ultimately depends on whether there are real users. three ️⃣ KOL Opinion Summary Calm down, calm down again @ Hexiecs | XHunt Rank: 1322 Viewpoint: This update is negative for early paper users (tokens will not have TGE in the short term, and their shares will be diluted faster); But it is a good thing for the project (enhancing incentives for real users later on), and the success or failure depends on whether the 1000x zero slip point product can attract real demand users. Even without the Farmer project, it will not die. Alvin617.eth @ Alvin0617 | XHunt Rank: 1687 Viewpoint: This change (token remains non transferable+adjustment of casting curve) is to prevent early advantage solidification or attack, while attracting users to continue trading, making the mechanism closer to casino "rebates" (returning withdrawals to players proportionally). Bulbasaur @ NintendoDoomed | XHunt Rank: 4719 Viewpoint: Within just 10 days of its launch, Papertrade refused to allow token transfers, raised robot transaction fees, and issued more shares to dilute existing holders, citing "prevention of malicious short selling" as the reason. Essentially, it was giving leeks points cards that depreciated as they accumulated, rather than real commission rebates. The trick was so familiar that it seemed like it was about to become a "happy bean". Deep Tide @ TechFlowPost | XHunt Ranking: 680 Within just 10 days of its launch, Papertrade changed its rules midway, froze PAPER transfers, and significantly diluted early holders, leaving players who relied on "loss mining" to bet on first mover advantages unable to monetize and facing infinite dilution, falling into a passive situation of being rejected Black Mario @ blmario669 | XHunt Rank: 39303 Viewpoint: Papertrade does not allow PAPER transfers, and the tokens exchanged for losses can only be distributed and recouped through continuous losses in the future. The returns are highly uncertain and will continue to be diluted. This gameplay is only suitable for super gambling dogs like Ma Ji. Ordinary retail investors should not deliberately lose money to mine, as stealing chickens will not result in losing money. The most awkward part is still the early users. The original logic was to obtain PAPER from trading losses, and then rely on pledging dividends or selling coins in the future to recoup costs. Selling coins is far away now, and holding shares may continue to be diluted. Papertrade chooses to prioritize the long-term survival of the protection protocol, but at the cost of leaving more uncertainty to early participants.