Paxos Gold (PAXG) is a cryptocurrency that is backed by physical gold. It is an ERC-20 token that runs on the Ethereum blockchain. Each PAXG token represents one fine troy ounce of a 400-ounce London Good Delivery gold bar. The gold backing the PAXG tokens is stored in vaults in London, Brink’s vaults in New York, and other secure locations.
The purpose of PAXG is to provide a more accessible way for individuals and institutions to invest in gold without having to deal with the logistics and costs of physically owning and storing gold. PAXG allows users to own and trade gold on the blockchain, making it easy to buy, sell, and transfer gold globally 24/7.
The tokenomics of PAXG involve a few key elements. First, the token is backed by physical gold, so the value of each token is directly tied to the price of gold. Second, PAXG tokens are created and destroyed based on the amount of gold backing them. When a user purchases PAXG, the corresponding amount of gold is moved into the vaults to back the token. When a user redeems PAXG, the corresponding amount of gold is removed from the vaults and returned to the user. Finally, PAXG tokens can be bought and sold on various cryptocurrency exchanges, with the price fluctuating based on supply and demand.
In terms of fees, there is a 0.03% fee charged for buying and selling PAXG, and there are also fees associated with transferring PAXG to and from different wallets. These fees are used to cover the costs associated with storing and securing the physical gold backing the tokens.
Overall, PAXG aims to provide a reliable, secure, and easy way for individuals and institutions to invest in gold through the use of blockchain technology.
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