My take on what happens now as a PAPER staker (5 min read) As shown in the first image, the PAPER emission curve will be very different after the next update. The main question: How much long term yield can you expect on PAPER staked today? tl;dr ~$9k to ~$20k in yield per 1m PAPER in my opinion. Two things to monitor: 1) The 'payout ratio' to stakers Payout ratio is the net trader losses divided by the gross trader losses. I.e, for every $ lost on Papertrade, how much flows to stakers? For this, see the second image. It has been at an average of 17.4% if you exclude the launch day where traders most likely tried to get liquidated more aggressively. The payout ratio will have a big impact on how much yield you can expect on your staked PAPER over the long term and is mainly impacted by trader winnings relative to trader losses. The final image shows the expected cumulative staking rewards per PAPER at different payout ratios. We can define the long term outcome as $2.5b in gross cumulative trader losses (10x what has been lost on Papertrade to date and above that you're so diluted you won't earn much additional yield). If you expect the payout ratio to stay flat at 17.4%, long term you end up with 1.57 cents per PAPER which is $15.7k per 1m PAPER. I personally wouldn't be surprised to see the payout ratio trend down as I believe a significant share of recent trading has been attempts to realize negative PL in order to mint PAPER. At 10%, the long term yield is $9k per 1m PAPER. 2) Will traders keep using Papertrade? For the above-mentioned long term staking yield to be captured you need organic demand for the product. Traders have lost ~$250m so far since Papertrade went live 1.5 weeks ago. If this pace continues you'll realize the long term yield outcome in a few months but I'd expect the activity to slow down meaningfully after the week-1 hype. So potentially this 1-2c per PAPER in yield outcome could take a year or more depending on how much traction the protocol sees moving forward. Keep in mind that this is an approximation, exact parameter upgrades haven't been specified yet. I'd also argue that we very well could see the team tuning these parameters again in the future. We could potentially see transferability at some point but I wouldn't count on it any time soon.