Cryptocurrency Q&A
How does PAXG make money?
How does PAXG make money?
Sara
Sun Jun 30 2024
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5 answers
720
Inquiring minds want to know: How does PAXG, a digital asset representing physical gold, actually generate profits? Is it through traditional mining operations? Or does it leverage the blockchain technology for innovative financial services? Does it charge transaction fees or rely on appreciation of its gold-backed value? Given the uniqueness of PAXG, I'm curious to understand the underlying business model and revenue streams that enable this digital gold asset to generate income. Could you elaborate on how PAXG turns its gold-backed promise into real-world financial gains?
5 answers
KatanaSwordsmanshipSkill
Mon Jul 01 2024
Paxos Gold operates within the Ethereum blockchain framework, leveraging its robust technology for secure and efficient transactions.
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Martina
Mon Jul 01 2024
These on-chain fees are determined by the current network conditions and the demand for computational resources, serving as a compensation to miners for validating and including transactions in new blocks.
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CryptoPioneer
Mon Jul 01 2024
The transactions involving PAXG tokens adhere strictly to the predefined smart contract rules of the Ethereum network, ensuring transparency and predictability.
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SumoStrength
Mon Jul 01 2024
Paxos imposes a minimal fee for the issuance and redemption of PAXG tokens, typically around 0.02%, as a service charge for its role in facilitating these operations.
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Elena
Mon Jul 01 2024
In addition to the Paxos fee, users are also required to pay on-chain fees when transferring PAXG tokens on the Ethereum blockchain.
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