Paxos allocates gold automatically so that all PAX Gold (PAXG) tokens are allocated to specific gold bars at all times. When customers are not allocated ownership of a full gold bar, they will own pro rata shares of bars as determined by PAXG token holdings.
Paxos may also reallocate PAX Gold tokens to different bars from time to time in order to take into account transfers of tokens, new exchanges of tokens, conversions and other PAXG transactional activity.
For simplicity, assuming 1 full gold bar = 400oz of Gold (400 PAXG)
Today, a customer buys 100 PAXG (equals to 100oz Gold) and gets partial ownership of one bar of Gold ("Bar A"), along with other buyers of PAXG to make up a total of 400PAXG for Bar A.
Let's say the same customer buys another 300 PAXG tomorrow, which makes their holdings equivalent to one bar of gold at 400oz. Instead of holding partial ownership of Bar A (100PAXG from before) and another partial ownership of Bar B (additional 300PAXG), the system reallocates Gold bar ownership accordingly so that the customer will have full ownership of Bar A (or some other Bar) instead. The other partial owners of Bar A from before will be reallocated to another gold bar (may be all different) so that it sums up to one full gold bar with other holders.
This allocation changes constantly given that the system takes into account all PAXG transactions throughout the day.
If you are a Paxos customer and are holding PAX Gold in your Paxos Wallet account, visit the PAXG Allocation report page. Here, you can get your gold bar’s serial number, brand code, gross weight, fineness and fine weight. This tool can be found in the PAX Gold tab on your account Dashboard.
If you hold PAX Gold on-chain outside of Paxos, you can review details on your gold bars here. You just need an Ethereum address to look up your tokens.
Please note that the lookup tool used for PAXG tokens held outside of the Paxos Wallet may not always provide results for tokens held on exchange platforms due to unique wallet structures. If you ever wish to use the lookup tool, you can always send your tokens back to Paxos.