The
$Paper Mechanic Is Wild
@paperdao_xyz
I dug deeper into PaperDAO and the token design is way more interesting than the usual perp narrative.
Here’s the part most people will miss:
Trader losses become the source of
$PAPER.
When a user realizes a loss or gets liquidated, that loss goes to LPs and
$Paper
is minted as the claim on those fees.
You can’t just deposit into the LP yourself.
And at launch,
$Paper
can’t be freely transferred either. It’s basically built around staking, unstaking and treasury exposure.
Then
$PULP creates another loop.
100% of trading fees from
$PULP volume go toward buying back and burning
$PULP.
1.1B total supply.
100M locked in a Uniswap V3 pool.
So you have:
Trader losses →
$Paper creation
$PULP volume → buybacks + burns Treasury → pro rata claim through
$PAPER
The oracle setup is interesting too.
PaperDAO uses Hyperliquid BBO mid for pricing, but doesn’t actually trade perps on Hyperliquid, meaning there are no Hyperliquid funding costs.
That’s a pretty different architecture from the typical perp meta.
And
@4IV4R /
@izebel_eth is building it.
I’m paying attention before the crowd fully figures out what the token mechanics are doing.
Apply for the PaperDAO whitelist:
daos.world/launch/paperdao/a…