PaperTrade, an on-chain perpetual-futures protocol, has secured $140 million in deposits. Following this influx of capital, the platform modified its tokenomics by canceling plans to make its native PAPER token transferable.
The decision to keep the token non-transferable has sparked concerns regarding liquidity and the long-term market viability of the asset. Investors are also expressing apprehension about potential dilution resulting from the updated issuance model.
Market sentiment has shifted significantly, with the probability of the protocol's fully diluted valuation exceeding $25 million one day after launch dropping from 95% to 52% over the past week.
Future market performance remains tied to potential updates from the protocol. Participants are currently monitoring for announcements regarding transferability, secondary-market access, staking rewards, and liquidity incentives.
