PAPER Mint Curve: Emission Inputs and Supply Growth

The flat-then-ratchet curve that turns eligible realised loss basis into PAPER supply.

Official Papertrade documentation · Updated November 5, 2026 · Canonical domain: papertrade.finance

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.

Flat region vs decaying tail

The early region intentionally produces more PAPER per unit of eligible loss while tracked LP is small. Once the curve moves beyond the documented threshold, the emission rate falls as the relevant high-water state grows. The curve therefore rewards earlier loss basis more heavily than equivalent loss basis at a mature protocol state.

Why high-water state matters

A high-water design prevents the mint rate from simply resetting upward after temporary LP drawdowns. That makes emissions path-dependent: the protocol remembers prior tail progress instead of treating every later decline as a return to the earliest emission regime.