Frequently Asked Questions
Everything About
PAXG Staking
35 answers covering PAX Gold, staking mechanics, security, and yield.
What is PAX Gold (PAXG)?+
PAX Gold (PAXG) is an ERC-20 token issued by Paxos Trust Company where each token is backed by one fine troy ounce (t oz) of a 400 oz London Good Delivery gold bar stored in professional Brink's vaults in London. PAXG combines the stability of physical gold with the flexibility of blockchain tokens.
What is PAX Gold Staking?+
PAX Gold Staking is a non-custodial DeFi protocol on Ethereum and Base that allows PAXG holders to lock their tokens for a defined period and earn passive yield paid in PAXG. Stakers earn between 3.2% and 8.4% APY depending on their chosen lock period, without ever giving up custody of their assets.
How is PAXG different from other gold tokens?+
PAXG is issued by a NYDFS-regulated trust company (Paxos), with monthly independent attestation of physical gold reserves. Unlike synthetic gold tokens or gold-backed stablecoins that may have fractional backing, every single PAXG token is directly linked to a specific gold bar or portion thereof stored in LBMA-approved vaults. You can even look up which specific bar backs your tokens.
What networks does PAX Gold Staking support?+
PAX Gold Staking currently supports Ethereum mainnet and Base (Coinbase's L2 network). Staking on Ethereum offers maximum security and decentralization; staking on Base offers significantly lower gas fees while settling to Ethereum. More networks are planned based on community governance.
What APY can I earn staking PAXG?+
APY ranges by lock period: Bronze (90 days) = 3.2% APY, Silver (180 days) = 5.8% APY, Gold (270 days) = 7.1% APY, Platinum (365 days) = 8.4% APY. All yields are paid in PAXG — meaning you earn additional fractions of a gold ounce on top of your staked position.
Are rewards paid in PAXG or another token?+
Rewards are paid exclusively in PAXG. This means your yield is in real tokenized gold — not a separate utility token, not a synthetic. Every PAXG you earn as a reward is itself backed by physical gold, just like your original stake. This makes PAX Gold Staking one of the purest forms of gold yield available on-chain.
Is there a minimum staking amount?+
The minimum stake is 0.01 PAXG, which is approximately $44 USD at current gold prices. There is no maximum staking limit. This low minimum makes gold yield accessible to retail investors who cannot afford a full ounce of gold, while still offering institutional-grade security and yield.
Is the staking protocol non-custodial?+
Yes. PAX Gold Staking is fully non-custodial. Your PAXG is held in smart contracts that you approved, not in a company wallet or hot wallet. There are no admin keys that can move your funds. Only your wallet address can initiate a withdrawal. The protocol team cannot access or freeze your staked PAXG under any circumstances.
What happens when my lock period ends?+
Once your lock period expires, your staked PAXG plus all accrued rewards become immediately withdrawable. You can choose to: (1) withdraw everything, (2) re-stake for another period, (3) withdraw rewards only and re-stake principal. There is no automatic re-lock — you always have full control after unlock.
Can I withdraw early before my lock expires?+
Yes, early withdrawal is possible at any time. However, an early exit penalty of 1.5% of your principal is applied. Accrued rewards up to the withdrawal date are forfeited. We recommend choosing a lock period that matches your investment horizon to avoid penalties and maximize returns.
How does auto-compounding work?+
When auto-compounding is enabled, your accrued PAXG rewards are automatically added back to your staked principal on every epoch (approximately every 24 hours), earning yield on yield. This significantly increases your effective APY over time. For example, 8.4% APY with daily compounding becomes approximately 8.75% effective annual yield.
What wallets are compatible with the staking protocol?+
Any EVM-compatible wallet works with PAX Gold Staking, including MetaMask, Coinbase Wallet, Rabby Wallet, WalletConnect-compatible wallets (Trust Wallet, Rainbow, etc.), and hardware wallets (Ledger, Trezor) via MetaMask. Simply connect on Ethereum or Base network to access all staking features.
How do I acquire PAXG tokens?+
PAXG can be purchased on major centralized exchanges including Coinbase, Kraken, Gemini, Binance, and OKX. On decentralized exchanges, PAXG is available on Uniswap, Curve, and SushiSwap on Ethereum. You can also mint PAXG directly through Paxos with a minimum of 0.01 oz of gold by passing their KYC process.
What is the current PAXG price?+
PAXG tracks the spot price of gold because each token equals one troy ounce of physical gold. The current price is approximately $4,409 USD per PAXG (as of October 2026). Since gold is a globally traded commodity, PAXG price reflects live gold market conditions 24/7, unlike equity markets that close on weekends.
Is PAX Gold Staking regulated?+
PAX Gold Staking is a non-custodial DeFi protocol — it is software running on public blockchains and does not require financial regulation in most jurisdictions. The underlying PAXG token is issued by Paxos Trust Company, which is regulated by the New York State Department of Financial Services (NYDFS). Users are responsible for understanding local cryptocurrency regulations.
Who is Paxos?+
Paxos Trust Company is a regulated financial institution and blockchain infrastructure provider founded in 2012. It is chartered by the NYDFS and has issued multiple regulated digital assets including PAXG and PYUSD. Paxos operates with segregated, bankruptcy-remote customer assets, meaning your gold is protected even if Paxos were to face financial difficulty.
Are the staking smart contracts audited?+
Yes. PAX Gold Staking contracts have been audited by Trail of Bits (Q1 2025), CertiK (Q2 2025), and OpenZeppelin (Q3 2025). All audits found no critical or high-severity vulnerabilities. Full audit reports are publicly available. An internal Paxos security review was also completed in Q4 2025.
What is the source of staking yield?+
Staking yield comes from multiple sources: (1) protocol fees from DEX trading of PAXG pairs, (2) lending premiums from institutional borrowers who use staked PAXG as collateral, (3) gold lease rates from allocated gold lending. All sources are on-chain verifiable. Unlike many DeFi protocols, no unsustainable inflation is used to fund rewards.
Is there any counterparty risk?+
The protocol itself is non-custodial with no counterparty risk. However, there are two systemic risks to be aware of: (1) Smart contract risk — mitigated by multiple audits and bug bounty programs, and (2) Paxos operational risk — mitigated by NYDFS regulation and bankruptcy-remote asset segregation. No staking protocol is zero-risk; these are the key risks to understand.
How are staking rewards calculated?+
Rewards are calculated as: Staked Amount × APY × (Days Staked / 365). For example, staking 1 PAXG for 180 days at 5.8% APY would earn: 1 × 0.058 × (180/365) = 0.02860 PAXG ≈ $126 USD at current gold prices. Rewards accrue every Ethereum block (~12 seconds) and can be viewed in real-time in the rewards dashboard.
Can I stake multiple times with different lock periods?+
Yes. You can create multiple independent staking positions from the same wallet, each with a different amount and lock period. This lets you diversify your staking strategy — for example, staking 30% in a 90-day Bronze tier for liquidity while placing 70% in a 365-day Platinum tier for maximum yield.
Is PAXG staking taxable?+
Tax treatment of staking rewards varies by jurisdiction. In many countries including the US, staking rewards are treated as ordinary income at the time of receipt, and any gain/loss on the underlying PAXG is a capital event at disposal. We strongly recommend consulting a qualified tax advisor familiar with cryptocurrency in your country.
What is the difference between staking on Ethereum vs Base?+
Both networks offer identical APY rates and security guarantees. The main difference is gas fees: staking on Ethereum mainnet costs more in ETH gas (typically $5–$25 per transaction depending on network congestion), while Base offers gas fees under $0.10. For small stakes, Base is significantly more cost-effective. For maximum decentralization, Ethereum mainnet is preferred.
Can I bridge PAXG between Ethereum and Base?+
Yes. PAX Gold Staking integrates a native bridge allowing you to move PAXG between Ethereum and Base seamlessly. Bridge transfers take approximately 7 minutes (Ethereum finality). Bridging is free except for the gas fee on the source chain. You can stake on either chain after bridging without additional approvals.
How does PAXG staking compare to traditional gold investing?+
Traditional physical gold earns 0% yield and incurs storage/insurance costs. Gold ETFs charge 0.25–0.40% annual management fees. PAXG staking earns up to 8.4% APY with no storage fees — you receive real gold yield rather than paying to hold gold. The tradeoff is smart contract and protocol risk, which physical gold does not have.
Is there a governance token?+
PAX Gold Staking is currently governed by a multi-sig council of protocol contributors. A governance token and DAO structure are planned for Q2 2026, which will give PAXG stakers voting rights on protocol parameters including APY rates, supported networks, fee structures, and upgrade proposals. Stakers will receive governance tokens proportional to their stake.
What is the bug bounty program?+
PAX Gold Staking operates a $2 million bug bounty program on Immunefi. Critical vulnerabilities earn up to $2,000,000. High severity: up to $100,000. Medium: up to $10,000. Low: up to $1,000. Responsible disclosure is required — public disclosure before a patch is applied will disqualify the reward and may harm users.
Can I use staked PAXG as collateral elsewhere?+
Not directly while staked — your PAXG is locked in the staking contract. However, upon withdrawal, your PAXG can be used as collateral on protocols like Aave, Compound, and MakerDAO, which accept PAXG as a high-quality collateral asset due to its physical gold backing and NYDFS regulation.
What happens to my stake if the gold price drops?+
Your staked PAXG quantity does not change if gold prices move — you always receive the same number of PAXG tokens you staked plus rewards. However, the USD value of your position will fluctuate with the gold spot price. Since PAXG tracks physical gold (a historically stable and appreciating asset), price drops are generally temporary and less severe than cryptocurrency volatility.
Is PAX Gold Staking open source?+
Yes. All PAX Gold Staking smart contracts are open-source, verified, and published on Etherscan (Ethereum) and Basescan (Base). The frontend interface code is also available on GitHub. Community developers can build integrations, dashboards, or bots using the public ABI and subgraph. We welcome community contributions.
How do I track my staking rewards in real time?+
Connect your wallet to the PAX Gold Staking app and navigate to the Rewards tab. You will see your total staked balance, accrued rewards in PAXG, USD equivalent at live gold prices, compound projection, and unlock dates — all updated every Ethereum block in real time. Rewards data is also accessible via the protocol's public API and subgraph.
Can institutional investors use PAX Gold Staking?+
Yes. The protocol has no maximum stake limit and supports institutional-scale positions. Institutional features include multi-sig wallet compatibility (Gnosis Safe), batch staking across multiple positions, REST API access, CSV export for accounting, and a dedicated support channel. Contact the team for institutional onboarding assistance.
What is the protocol's fee structure?+
The protocol charges no staking fee. A 0.02% withdrawal fee is charged only on successful unlock (not on early exit penalty, which is separate). Auto-compound transactions cost a 0.005% execution fee to cover keeper bot costs. These minimal fees fund protocol operations and the bug bounty program. No hidden fees exist.
How do I contact the PAX Gold Staking team?+
Support is available via: Telegram community, Discord server (fastest response), and email at
[email protected]. For security vulnerability reports, use the Immunefi bug bounty platform. Always verify you are communicating with official accounts — team members will never DM you first or ask for your private keys or seed phrase.
Is PAX Gold Staking available worldwide?+
PAX Gold Staking is a permissionless DeFi protocol — anyone with an Ethereum or Base compatible wallet can interact with the smart contracts. However, certain jurisdictions may restrict access to the web interface. PAXG tokens themselves may be subject to local commodity or securities regulations. Users are responsible for compliance with their local laws before using the protocol.