peaq network (PEAQ) Tokenomics

The PEAQ token is the native utility and governance asset of the peaq network, a Layer-1 blockchain purpose-built for Decentralized Physical Infrastructure Networks (DePINs) and the Internet of Things (IoT). Launched alongside the mainnet on November 12, 2024, the token is designed to align economic incentives with network security and long-term ecosystem growth.

Issuance Mechanism

PEAQ operates under a disinflationary economic model with a maximum total supply of 4,200,000,000 tokens. The supply expansion is managed through a programmed inflation schedule designed to reward early participants while transitioning toward stability as the network matures.

• Initial Inflation Rate: Set at 3.5% annually at launch.
• Disinflationary Schedule: The inflation rate is programmed to decrease by 10% each year.
• Terminal Inflation: The rate will continue to drop until it stabilizes at 1%, approximately 12 years after the mainnet launch.

This model aims to balance the need for early adopter incentives with the long-term goal of matching inflation to the growth of network transactions.

Allocation Mechanism

The initial distribution of PEAQ tokens is divided among various stakeholders, including early supporters, core contributors, and community initiatives.

Note: Some data sources indicate a total issuance of 4.25 billion tokens, with minor variations in specific category percentages (e.g., Community Campaigns at 20% and Core Team at 15% in some projections).

Usage and Incentive Mechanism

The PEAQ token serves several critical functions within the "peaqosystem":

• Transaction Fees: PEAQ is the native currency used to pay for all network transactions, ensuring security and compensating validators.
• Staking and Security: The network utilizes a Delegated Proof of Stake (DPoS) consensus. Token holders can stake PEAQ to support validator nodes or delegate to existing validators to earn rewards. By the end of Q3 2025, approximately 47.4% of the total issuance was staked.
• Governance: Token holders will eventually have on-chain voting rights regarding network updates, economic policies, and ecosystem grants.
• Machine Reputation: In future iterations, machine owners may stake PEAQ on devices to vouch for their reliability. If a machine fails to perform, the stake can be slashed.
• DePIN Flywheel: Incentives are designed to drive a virtuous cycle where participants are rewarded for bootstrapping the deployment of new devices and infrastructure.

Locking and Unlocking Mechanism

The unlocking schedule is designed to prevent market oversaturation by implementing cliffs and linear vesting periods for various tranches.

Locking and Vesting Details

Unlocking Timeline Milestones

The liquid supply of PEAQ is projected to grow steadily through May 2028. Significant unlock events include:

• Q2 2025: Approximately 294.1 million tokens projected to enter circulation.
• Q3 2025: Approximately 327.3 million tokens projected to unlock, with Investors (20.2%) and Community (7.6%) representing the largest portions of that specific quarter's circulating supply increase.
• Post-2027: Most categories, including Treasury and Network Security, are expected to reach a plateau in their supply contribution.