The tokenomics of PAX Gold (PAXG) is designed to bridge physical gold assets with blockchain technology. Here are the detailed explanations:
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🔹 1. Basis of PAXG
PAXG (Paxos Gold) is a cryptocurrency token that is 100% backed by physical gold.
Issued by Paxos Trust Company, a regulated financial institution in New York.
Every 1 PAXG token = 1 troy ounce of London Good Delivery gold bullion stored in Brink's vaults.
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🔹 2. Supply & Backing
Its supply is not fixed and changes according to market demand.
Paxos issues or burns tokens based on the amount of gold coming in or out of their reserves.
All the gold backing PAXG is audited and certified regularly.
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🔹 3. Utility & Benefits
Access to gold globally and instantly without having to store physical gold.
Can be used for inflation hedging, portfolio diversification, or on-chain collateral in DeFi.
Compared to buying conventional gold, PAXG is easier to trade, more liquid, and fractional (can buy <1 gram).
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🔹 4. Token Details
Blockchain: Ethereum (ERC-20 token).
Price: Follows the global spot gold price.
Fee: There is a small fee for on-chain transactions (Ethereum gas fee) and for redeeming tokens for physical gold.
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🔹 5. Regulation & Transparency
Issued by a regulated entity (Paxos).
PAXG has regular audit reports.
Paxos has a license as a Trust Company from NYDFS (New York Department of Financial Services).
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🔹 6. Brief Tokenomics
Aspect Detail
Token Supply Dynamic (depends on the amount of gold)
Backing 1 PAXG = 1 troy ounce of gold
Blockchain Ethereum (ERC-20)
Usage Gold investment, hedging, DeFi collateral, cross-border transfer
Fee Ethereum gas fee + redemption fee when exchanged for physical gold
Regulator Paxos Trust Company (registered and supervised by NYDFS)
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If you are interested in buying or using PAXG, you can do so through Binance. This token is very suitable for those who want to own gold while remaining active in the crypto ecosystem.
