peaq Tokenomics
Overview
- Max supply: 4,200,000,000
- Ticker: $PEAQ
- Disinflationary model: The inflation rate is initially set at 3.5%, ensuring sufficient incentives for early adopters. However, this inflation rate will decrease annually by 10% and will stabilize once the network reaches 1% inflation. The community will be able to propose adjustments to the inflation/deflation settings via the network governance mechanism.
Allocation Details
See the visual below for the initial allocation of the $PEAQ token.
| Allocation | Amount | Percentage of Total Supply | TGE | Lock-Up (Months) | Release after lock-up | Vesting (Months) | Purpose |
|---|---|---|---|---|---|---|---|
| Early Backers | 504,000,000 | 12% | 5% | 6 | 5% | 24 | Early-stage liquidity raising to support the development of peaq as an open-source public network. |
| Private Rounds | 924,000,000 | 22% | 7.5% | 6 | 7.5% | 18 | Raising liquidity to support further development of peaq and foster the growth of its ecosystem. |
| Public Offering | 252,000,000 | 6% | 15% | 0 | 0% | 6 | Giving the community access to the network while raising additional liquidity to foster peaq’s growth and adoption. |
| EoT Labs | 357,000,000 | 8.5% | 0% | 9 | 0% | 36 | Funding the operations of EoT Labs as an organization developing peaq as an open-source network. |
| Team | 483,000,000 | 11.5% | 0% | 9 | 0% | 36 | An incentive program for the core contributors helping to build and scale peaq and its ecosystem. |
| Network Security | 210,000,000 | 5% | 0% | 0 | 0% | 54 | An allocation for security audits and other measures meant to make peaq as safe and resilient as possible. |
| Ecosystem & Treasury | 840,000,000 | 20% | 0% | 0 | 0% | 48 | An allocation toward ecosystem-facing incentive programs such as the peaq Ecosystem Grant Program, meant to promote peaq as the home of DePIN and onboard new projects. |
| Community Initiatives | 630,000,000 | 15% | 0% | 0 | 0% | 36 | An allocation toward growth campaigns, airdrops, and other community-building measures. |
Token Unlock Schedule
The $PEAQ supply schedule is designed to account for the network’s long-term growth and the needs of the ecosystem as it scales and expands into new industries.
Please kindly note that the supply schedule may be subject to minor changes ahead of the token listing.
Utility
Like with any other layer-1 blockchain token, $PEAQ’s primary utility is in enabling some of the most fundamental interactions on the network: paying transaction fees, producing blocks in a censorship-resistant way via a staking and slashing mechanism, and governing the network.
Here is more information on these utilities:
Transaction fees: $PEAQ is used for transaction fee payment on the peaq blockchain. The amount of $PEAQ needed for any particular transaction is calculated based on the weight, length, and other parameters of the transaction. As with other layer-1 blockchain, it is impossible to use the network without $PEAQ, as no transactions can be carried out without paying the fee in $PEAQ. Just like with dApps on Ethereum, all transactions from DePINs on peaq will require a fee in $PEAQ. The millions of machines, vehicles, and sensors across these DePINs are expected to generate millions of transactions.
Network operation: peaq relies on the work of Collators and Delegators for block production. To ensure that blocks are produced in an honest, censorship-resistant and reliable way, peaq has a staking mechanism, which incentivizes honest work from Collators and Delegators. Collators need to provide a staking deposit to run a collator node to have “skin in the game”. Delegators can delegate their stake to Collators of their choice in order to back them. Only those Collators with enough backing (stake) are able to produce blocks. Thus Delegators actively govern which Collators are producing blocks and can thereby ensure that trusted and well operating Collators are active. If the Collator misbehaves or goes offline, its Delegator stops earning. Thus Delegators need to continuously check Collators’ behavior and manage their stake allocation actively.
Network governance: Holding $PEAQ will enable you to gradually guide the project by voting on key decisions via on-chain governance concerning its development and future. Reputation system: Machine owners will be able to stake $PEAQ tokens as an extra guarantee of their machines’ trustworthiness.