> For the complete documentation index, see [llms.txt](https://protocol-x.gitbook.io/ptxcrypto/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://protocol-x.gitbook.io/ptxcrypto/ecosystem/pusd-appreciating-stable-coin.md). # PUSD (Appreciating Stable Coin) **PUSD** PUSD is an algorithmic token that is 100% backed by BUSD. This means that it is effectively designed to only appreciate in value over time. You can purchase PUSD by simply sending BNB directly to the contract address, and it will exchange your BNB for PUSD. To sell PUSD, you just have to send PUSD to yourself. There will be a button on the dApp to buy/sell PUSD very simply. PUSD will be distributed with the X Share revenue pools and will be incorporated with various aspects of the protocol. PUSD has a 2% buy / 2% sale / 2% transfer tax. 100% of the taxes are utilized to burn the token and bolster the algorithmic price appreciation mechanics.\ \ **PUSD Buy/Sale Example:**\ \ \&#xNAN;***Buy-example:*** There are 1000 PUSD in circulation, resulting in $1000 BUSD in backing so the current price is 1000/1000 = $1 Person A buys PUSD for $1000 There is a buy tax of 2% which goes to the backing of PUSD. The smart contract mints $1000 \* 0.98 = 980 PUSD Person A receives 980 PUSD, resulting in 1980 PUSD in circulation now with a BUSD backing of $2000 The new price is 2000/1980 = $ 1.0101. **TDLR:** You’re putting BNB in and receiving PUSD (98% of what you’re getting, due to a 2% tax). Let’s use dollars because BNB is a little confusing: $1000 goes in, and the contract mints exactly 980 tokens (1000 - 2%), so now the backing has $2000 in it and a total of 1980 tokens in circulation. ***Pre Buy:*** $1000/1000 PUSD = $1.00 ***Post-Buy:*** $2000/1980 PUSD = $1.0101
***Sell-example:*** There is 1980 PUSD in circulation with $2000 backing and a price of $1.0101. There is a sales tax of 2% that goes to the backing of the protocol. Person B sells 750 PUSD and receives: (750 PUSD \* $1.0101 \* 0.98) = $742.42 The 750 PUSD is completely burned by the smart contract. The new supply is 1980 - 750 = 1230 PUSD The new backing is $2000 - $742.42 = $1257.58 The new price of PUSD is $1257.58 / 1230 = $1.0224 **TLDR:** You sell 750 PUSD and receive BNB (750 - 2% tax) (In BUSD): You receive: (750 \* $1.0101 \* .98) = $742.42 The contract burns the 750 PUSD sold, reducing the total supply to 1230 1980 - 750) New price = Backed $ Amount / current supply = $1257.58 / 1230 = $1.0224 --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://protocol-x.gitbook.io/ptxcrypto/ecosystem/pusd-appreciating-stable-coin.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.