PAX Gold
Introduction
PAX Gold (PAXG) is an ERC-20 token that is pegged to one troy ounce (system of weights for precious metals and gems) of a 400-ounce London Good Delivery gold bar. PAXG seeks to make purchasing gold bullion easier, faster and more accessible through fractional ownership.
Holders of PAXG tokens own the underlying asset, which is held by the Paxos Trust Co. and which can be redeemed at any point. If the token holder chooses to redeem for gold bars, they must have a minimum of 430 PAXG. PAXG price tracks the price of the gold it represents, which is subject to changing market conditions.
Background
PAX Gold (PAXG) was founded by the Paxos Trust, the same company that manages the Paxos brokerage platform.
Unlike with many cryptocurrencies, there is no maximum supply for the asset because Paxos Trust can issue as many tokens as demand requires.
Launch
Paxos Trust introduced PAX Gold in September 2019.
How does it work?
Every PAXG token is backed by one ounce of allocated gold stored in Brink’s vaults. For smaller amounts, physical gold retailers are used to help investors redeem their tokens.
PAXG uses the same consensus protocol and blockchain features as Ethereum, including access to smart contracts.
Paxos Trust uses Chainlink’s data oracle product to provide real-time price information for gold and the PAXG token. An oracle is technology that brings data from an external source to a blockchain.
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