Papertrade found the one airdrop nobody can dump: the one you can't sell.
PAPER is minted from trader losses on the HyperEVM perp app that prices off Hyperliquid's books. Lose money, get PAPER, collect your rebate on the house's take. On Oct 19 the team said it stays non-transferable, with no plans to change that.
The annoying part for the critics: the reasoning is good. Their own example: with a $10M bankroll, a $15M attack pushing BTC or ETH just loses money. Add $10M of PAPER shorts on some outside perp and the same attack pays. A tradable PAPER is a short on the house's solvency.
The fine print is where week-one farmers get the bill: • Issuance moves to roughly 0.1% of supply per $1M lost, which the team says will "slowly dilute out older holders" • New fees on positions closed within 6 bps of entry (10 bps off hours), hitting bots about 15x harder than normal traders, per the team • Changes go live 24h after they're queued in the timelock
Token Autopsy: value does reach PAPER, as rakeback. What doesn't exist is an exit. That's a loyalty card with good math, not an asset.
Winners: the bankroll and next month's losers. Holding the bag: anyone who farmed week one pricing in a listing.
Honest risk control, or the most elegant goalpost move of the cycle?
https://x.com/papertrade_xyz/status/2112310325521399982