Odaily Planet Daily reports: Jez, founder of Papertrade, responded on X to the controversy surrounding the non-transferability of the PAPER token, stating that the team was aware of certain unresolved technical issues prior to the protocol’s launch, including potential attack risks from perpetual futures markets, but had initially expected more time to find solutions.
Jez noted that the team previously estimated it would take about six months for large perpetual contract markets to launch, but the progress of these markets has far exceeded expectations, forcing the team to make a decision before finding an effective solution. To ensure the long-term healthy development of the protocol, PAPER has now been set to non-transferable status.
He emphasized that PAPER represents users' claim to the protocol's earnings, and its long-term value depends on whether Papertrade can sustainably attract traders, not on whether the token can be freely traded. The team is unwilling to restrict the protocol's business growth to support perpetual contracts trading for PAPER.
In response to community concerns that the rule changes harmed early users, Jez stated that these adjustments were not made lightly, but rather were risk management decisions based on actual operational data since the protocol’s launch. The team will continue to refine protocol parameters to ensure long-term sustainability.