PAPER Token Mining Rewards Drop by Nearly 90%, Facing Potential Sell Pressure

Crypto analyst Ignas posted on the X platform that PAPER token mining rewards have significantly decreased. Early users could earn 100 PAPER for every $1 of eligible trading losses, but this has now dropped to about 11 PAPER. At the current reward level, a trade with a $1,000 loss would yield only about 10,700 PAPER. Based on recent staking yield estimates, daily earnings are approximately $2.6 to $4.9, meaning it would take about 200 to 385 days to recover the losses, not accounting for the dilution effect from token issuance. The analyst believes that after PAPER opens for transfer transactions, some trading users may prefer to sell their tokens directly to offset losses, creating potential selling pressure. Galaxy Research also pointed out that the market price of PAPER will affect the scale of mining activities, which in turn will determine the protocol's long-term revenue. If a drop in token price leads to reduced mining activities, it could further weaken the protocol's income and staking yields. The long-term value of PAPER depends on whether Papertrade can continue to attract real trading demand and maintain revenue after the incentive decline.

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