The website linked seems to redirect to localbitcoins.

What gives Papillon units value if there are no transaction fees? Can someone create and use a token on the platform without ever owning Papillon. If Papillon has no/little value, can't someone buy/control 50% easily and thus have control over the network. Who will run nodes? (Maybe some form of merged mining could be used where Nxt nodes could additionally forge the Papillion network?)

If it's free, won't the blockchain become extremely bloated if it gets heavily used. It seems that some built in pruning would be essential for a free service.

You didn't give any details of your ddos protection. Does that prevent millions of free transactions from being added to the blockchain as a form of attack?