Crypto analyst Ignas said on X that PAPER token mining rewards have dropped sharply from their early level. According to his post, users initially received 100 PAPER for every $1 in eligible trading losses, but that figure has now fallen to about 11 PAPER. At the current reward rate, a trade that loses $1,000 would generate roughly 10,700 PAPER. Based on recent staking yield levels, that would translate into about $2.60 to $4.90 in daily returns, implying a recovery period of around 200 to 385 days, not including dilution from future token issuance. Ignas said that once PAPER becomes transferable and tradable, some users may prefer to sell tokens directly to offset their losses, creating potential sell pressure. Galaxy Research had previously said PAPER’s market price would affect the scale of mining activity and, in turn, the protocol’s long-term revenue. If the token price falls and mining activity slows, protocol revenue and staking yields could also weaken. PAPER’s longer-term value, the report said, will depend on whether Papertrade can keep attracting real trading demand and sustain revenue after incentives decline.
Crypto analyst Ignas said in a post on X that mining rewards for the PAPER token have dropped sharply.
He wrote that early users received 100 PAPER for every $1 in eligible trading losses. That figure has now fallen to about 11 PAPER.
Lower rewards extend the payback period
At the current reward rate, a trade that loses $1,000 would earn roughly 10,700 PAPER. Based on recent staking yield levels, that would produce about $2.60 to $4.90 in daily returns, meaning it would take around 200 to 385 days to recover the loss. That estimate does not include dilution from additional token issuance.
Ignas sees possible selling once transfers begin
Ignas said that after PAPER opens for transfers and trading, some trading users may choose to sell their tokens directly to offset losses, creating potential sell pressure.
Galaxy Research had also linked price to protocol revenue
Galaxy Research previously said PAPER’s market price would influence the scale of mining activity and, by extension, the protocol’s long-term revenue. If a lower token price leads to reduced mining activity, protocol revenue and staking yields could weaken as well.
In that view, PAPER’s long-term value depends on whether Papertrade can continue to attract real trading demand and maintain revenue after incentives decline.
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