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This paper discusses the presence of steady-state limit cycles in digitally controlled pulse-width modulation (PWM) converters, and suggests conditions on the control law and the quantization resolution for their elimination. It then introduces single-phase and multi-phase controlled digital dither as a means of increasing the effective resolution of digital PWM (DPWM) modules, allowing for the use of low resolution DPWM units in high regulation accuracy applications. Bounds on the number of bits of dither that can be used in a particular converter are derived. Finally, experimental results confirming the theoretical analysis are presented.