Analysis: PAPER's Adjustment to Token Minting Mechanism Will Weaken Early Miners' Advantage

Odaily reports: Trader degentrading stated that compared with the previous supply model, PAPER's new token minting mechanism will give new users a relatively higher share, and the advantage of early mining users will decline accordingly. He noted that this adjustment is unfavorable to early participants but beneficial to the protocol's long-term development and organic users.

Earlier news: Papertrade officially stated that there are currently no plans to enable transferability of the PAPER token, and that it will adjust the fee and token minting mechanisms. In the future, for every $1 million in losses, approximately tokens equivalent to 0.1% of the PAPER supply at that time will be minted, with the specific ratio depending on the minting rate at the time of the contract upgrade. When the capital pool approaches or falls into an insolvent state, it will no longer mint a fixed 100 PAPER per $1 of loss, and will instead adopt a weighted multiplier mechanism that grows over time. The team stated that in the long term, the new mechanism will gradually dilute the share of earlier holders, giving recent users a greater advantage.