# Papertrade's PAPER Transfer Restriction Puts USDC Payouts in Focus By Enna Lee Canonical URL: https://www.tokenpost.com/news/investing/35834 Published: 2026-10-20T17:53:10.000Z Updated: 2026-10-20T17:53:10.000Z Section: Investing > Holders can unstake at any time, but 21 of the 25 biggest losing accounts remained in net loss after USDC distributions. Papertrade’s decision to restrict PAPER transfers outside its contracts leaves traders who earn the token from losses relying on USD Coin (USDC) staking distributions to offset those losses. The restriction does not lock tokens in staking. Holders can unstake immediately and claim and withdraw their USDC distributions. PAPER earned through eligible losses and liquidations, however, cannot be sent outside the platform’s contracts for a direct token sale. Papertrade kept outside transfers closed over concern that an attacker could pair a short position in PAPER with price manipulation to extract value from its liquidity pool. The company has given no timetable for allowing external transfers. How much PAPER a trader receives also depends on the type of loss. For an ordinary losing close when the payout queue is empty, Papertrade calculates minting from the loss after a 2% fee is removed from the basis. Liquidations and certain queued losses use the full loss as the basis. That distinction affects any calculation of how long distributions might take to offset a trading loss. USDC payouts also depend on protocol activity and a holder’s share of staked PAPER, so a single daily rate would not describe every trader’s outcome. Among the 25 accounts with the biggest trading losses, 21 remained in net loss after their USDC distributions. Those results show that payouts had not offset losses for most of that group; they do not establish a recovery period for other traders. Papertrade offers synthetic perpetual contracts on Bitcoin (BTC) and Ether (ETH). Under its [planned PAPER issuance change](), every $1 million in future trader losses would mint tokens equal to roughly 0.1% of the supply at that time. The precise percentage will depend on the mint rate when the contracts are upgraded. If recipients stake newly minted PAPER, existing stakers’ shares of the staking pool could shrink. The contract upgrade will determine the final issuance rate. ## Links in this article - [planned PAPER issuance change](https://www.tokenpost.com/news/technology/35593)