On-chain transactions are those that take place on the blockchain. For Pax Gold (PAXG), token transfers from one ERC-20 address to another are considered on-chain transactions, which are recorded by the Ethereum blockchain. The transfer of token possession is then recorded by the Ethereum blockchain.
When sending PAXG over the blockchain, users are charged with two different fees on top of their transfers:
- Standard "gas" fee: This covers the processing power or "gas" used to compute and send digital assets on the Ethereum blockchain. Gas fees are usually paid in ETH.
- PAXG on-chain transaction fee: This fee amounts to 0.02% of the total transfer amount in PAXG to cover PAXG transactions done on the blockchain.
For example, if you wish to send 100 PAXG from one Ethereum address to another, you would need to transfer at least 100.02 PAXG + PDAX fees to cover the cost of the on-chain transaction fee.
Please ensure that all the required fees are considered when making PAXG transfers.