The protocol funds itself and its ecosystem entirely through fees. No team allocates tokens. As the protocol grows, it generates fees, which are distributed to the ecosystem fund and the development team

There is no "schedule" of token emissions. All tokens are created through usage of the protocol, and scale accordingly.

Fee itemization

Trading (paid in PARA). When buying or selling PARA on the spot market, a small fee is collected. Initial value: 2% for buys, 2% for sells.

Unstaking (paid in PARA). When unstaking PARA, a fee is collected. This is to incentivize long-term staking to gain enough prPARA rewards to balance the fee. Initial value: 0.5%

DISE loan origination (paid in PARA). When taking out a DISE loan from locked PARA, a one-time flat percentage fee is collected from the total allowable DISE. This fee is large in order to disincentivize over-leveraging of DISE loans with PARA purchases. Initial value: 3%

Ecosystem Growth Fee (paid in prPARA). The protocol mints an amount of prPARA in proportion to net supply of PARA. This dilutionary fee is designed to scale with the health of the protocol. As more PARA gets minted, the same proportion of prPARA is created. In times whenPARA is being sold back & burned, no prPARA is generated. Initial value: 8% of net PARA

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