Explore the tokenomics of Tether (USDT) and review the project details below.

What is the allocation for PayPal USD (PYUSD)?

PYUSD does not have an initial allocation or pre-mined tokens. The issuance and burning of PYUSD are entirely demand-driven, based on user interactions with the PayPal and Paxos platforms.

What is the supply schedule for PayPal USD (PYUSD)?

PYUSD operates as a fully collateralized stablecoin, meaning its supply dynamically adjusts based on demand. When a user purchases PYUSD, the corresponding amount of U.S. dollars is deposited into Paxos Trust Company's reserves. These reserves are held in U.S. dollar deposits, short-term U.S. Treasuries, and similar cash equivalents. Paxos then mints an equivalent amount of PYUSD on the blockchain to match the dollar reserves.

Conversely, when users redeem PYUSD for U.S. dollars, Paxos burns the equivalent amount of PYUSD, reducing the supply. This ensures that the circulating supply of PYUSD is always backed 1:1 by U.S. dollar reserves, maintaining the stablecoin's value and stability​.

Paxos regularly publishes transparency reports and independent attestations to verify the reserve holdings and ensure the supply matches the amount of PYUSD in circulation. These reports can be accessed on the Paxos PYUSD Transparency Page.