Tokenomics
Ticker: PEAQ
Total supply at genesis: 4,200,000,000
Disclaimer: The earlier version of this page wrongfully referred to peaq’s total supply at genesis as its max supply. As the page also provided a breakdown of peaq’s inflation model, which wouldn’t have applied to a token with a capped supply, any confusion results from a simple and unfortunate copywriting error. With this disclaimer, the peaq foundation reaffirms its commitment to transparency and clarity of communication.
Utility
Utility Like with any other Layer 1 blockchain's native asset, PEAQ’s primary utility is in enabling 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 billions of transactions.
Staking: peaq relies on the work of Validators 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 Validators and Delegators. Validators need to provide a staking deposit to run a Validator node to have “skin in the game”. Delegators can delegate their stake to Validators of their choice in order to back them. Only those Validators with enough backing (stake) are able to produce blocks. Thus Delegators actively govern which Validators are producing blocks and can thereby ensure that trusted and well operating Validators are active. If the Validator misbehaves or goes offline, its Delegator stops earning. Thus Delegators need to continuously check Validators’ behavior and manage their stake allocation actively.
Governance: Holding PEAQ will enable you to gradually guide the network by voting on key decisions via on-chain governance concerning its development and future.
Inflation
The inflation rate is initially set at 3.5%, ensuring sufficient incentives for early adopters. However, the inflation rate will decrease annually by 10% and will stabilize once the network reaches 1% inflation, following a disinflationary model. In the future, the community will be able to vote on adjustments to the inflation/deflation model via the network’s governance.
Allocation at genesis
The table is horizontally scrollable →
| Allocation Category | Supply % | Distribution Address | Allocation Subcategory | Address Type | Supply % | Token Amount | Available at TGE | Lock-Up (Months) | Release after Lock-Up | Linear Vesting (Months) |
|---|---|---|---|---|---|---|---|---|---|---|
| Investors | 34 | 5Ejz...rbk3 | Funding (Pre Seed) | / | 7 | 294,000,000 | 11,025,000 | 6 | 11,025,000 | 24 |
| Funding (Seed) | / | 5 | 210,000,000 | 13,125,000 | 6 | 13,125,000 | 24 | |||
| Funding (Private) | / | 13 | 546,000,000 | 40,950,000 | 6 | 40,950,000 | 18 | |||
| Funding (Pre Launch Private) | / | 9 | 378,000,000 | 28,350,000 | 6 | 28,350,000 | 18 | |||
| Community | 21 | 5FqM...61NJ | Community (Community Sale) | LayerZero contract: 0xe410...D862 | 6 | 252,000,000 | 40,950,000 | 0 | 0 | 6 |
| Community (Get Real Campaign) | Foundation managed: 0xB22E...097 | 5 | 210,000,000 | 0 | 3 | 0 | 0 | |||
| Community (Early Adopters Campaign) | Foundation managed: 0x1A4e...bf5b | 2.53 | 106,260,000 | 0 | 3 | 0 | 0 | |||
| Community (Initial Community Campaign) | Further distribution address: 5HbJd...JEP | 2 | 84,000,000 | 84,000,800 | 0 | 0 | 0 | |||
| Community (Community Reserve) | Foundation managed: 0xe0a4...9d8F | 5.47 | 229,740,000 | 0 | 0 | 0 | 0 | |||
| Core Contributors | 11.5 | 5FqVA...DymA | Core Contributors | / | 11.5 | 483,000,000 | 0 | 9 | 0 | 36 |
| 8.5 | 5GEde...sJVY | EoT Labs | / | 8.5 | 357,000,000 | 0 | 9 | 0 | 36 | |
| Network Security | 5 | 5F4r...Xyy | Network Security (Security Reserve) | Foundation managed: 0x355A...1913 | 3.4583 | 145,248,600 | 0 | 0 | 0 | 0 |
| Network Security (Genesis Node Set) | Further distribution address: 5GGkf...SZMx | 0.0417 | 1,750,140 | 1,750,140 | 0 | 0 | 0 | |||
| Network Security (Core Time Lease) | / | 1.5 | 63,000,000 | 0 | 0 | 0 | 24 | |||
| Ecosystem & Treasury | 20 | 5FWuQ...Exdo | Ecosystem & Treasury (Market Making & Liquidity) | Further distribution address: 5GEdz...ANWAF | 3.75 | 157,500,000 | 157,500,000 | 0 | 0 | 0 |
| Ecosystem & Treasury (Reserve) | Foundation managed: 0x4b4c...D49 | 11.18 | 469,560,000 | 0 | 0 | 0 | 0 | |||
| Ecosystem & Treasury (Capital Contributions) | Foundation managed: 0x45AD...33B | 0.3 | 12,600,000 | 0 | 0 | 0 | 0 | |||
| Ecosystem & Treasury (Grants) | Foundation managed: 0x46E9...83C0 | 1.77 | 74,291,837.77 | 0 | 0 | 0 | 0 | |||
| Ecosystem & Treasury (Expansion Reserve) | Foundation managed: 0x7B38...455 | 3 | 126,000,000 | 0 | 0 | 0 | 0 |
Unlocks
| Month | PEAQ Unlock | Inflation* | Locked PEAQ | Unlocked Supply** | % Unlocked | Total Supply |
|---|---|---|---|---|---|---|
| 0 | 377,650,940 | 0 | 3,822,349,060 | 377,650,940 | 8.99% | 4,200,000,000 |
| 1 | 39,900,000 | 12,250,000 | 3,789,799,060 | 422,450,940 | 10.03% | 4,212,250,000 |
| 2 | 39,900,000 | 12,250,000 | 3,757,249,060 | 467,250,940 | 11.06% | 4,224,500,000 |
| 3 | 75,110,000 | 12,250,000 | 3,689,489,060 | 547,260,940 | 12.92% | 4,236,750,000 |
| 4 | 75,110,000 | 12,250,000 | 3,621,729,060 | 627,270,940 | 14.76% | 4,249,000,000 |
| 5 | 75,110,000 | 12,250,000 | 3,553,969,060 | 707,280,940 | 16.60% | 4,261,250,000 |
| 6 | 73,010,000 | 12,250,000 | 3,488,309,060 | 785,190,940 | 18.37% | 4,273,500,000 |
| 7 | 131,285,000 | 12,250,000 | 3,364,374,060 | 921,375,940 | 21.50% | 4,285,750,000 |
| 8 | 100,455,833 | 12,250,000 | 3,271,268,226 | 1,026,731,773 | 23.89% | 4,298,000,000 |
| 9 | 106,079,167 | 12,250,000 | 3,172,539,060 | 1,137,710,940 | 26.40% | 4,310,250,000 |
| 10 | 106,079,167 | 12,250,000 | 3,073,809,893 | 1,248,690,107 | 28.89% | 4,322,500,000 |
| 11 | 106,079,167 | 12,250,000 | 2,975,080,726 | 1,359,669,273 | 31.37% | 4,334,750,000 |
| 12 | 106,079,167 | 12,250,000 | 2,876,351,560 | 1,470,648,440 | 33.83% | 4,347,000,000 |
| 13 | 106,079,167 | 11,410,875 | 2,777,118,918 | 1,581,291,957 | 36.28% | 4,358,410,875 |
| 14 | 106,079,167 | 11,410,875 | 2,677,886,276 | 1,691,935,474 | 38.72% | 4,369,821,750 |
| 15 | 88,579,167 | 11,410,875 | 2,596,153,635 | 1,785,078,990 | 40.74% | 4,381,232,625 |
| 16 | 88,579,167 | 11,410,875 | 2,514,420,993 | 1,878,222,507 | 42.76% | 4,392,643,500 |
| 17 | 88,579,167 | 11,410,875 | 2,432,688,351 | 1,971,366,024 | 44.76% | 4,404,054,375 |
| 18 | 88,579,167 | 11,410,875 | 2,350,955,709 | 2,064,509,540 | 46.76% | 4,415,465,250 |
| 19 | 88,579,167 | 11,410,875 | 2,269,223,068 | 2,157,653,057 | 48.74% | 4,426,876,125 |
| 20 | 88,579,167 | 11,410,875 | 2,187,490,426 | 2,250,796,574 | 50.71% | 4,438,287,000 |
| 21 | 88,579,167 | 11,410,875 | 2,105,757,784 | 2,343,940,090 | 52.68% | 4,449,697,875 |
| 22 | 88,579,167 | 11,410,875 | 2,024,025,143 | 2,437,083,607 | 54.63% | 4,461,108,750 |
| 23 | 88,579,167 | 11,410,875 | 1,942,292,501 | 2,530,227,124 | 56.57% | 4,472,519,625 |
| 24 | 88,579,167 | 11,410,875 | 1,860,559,859 | 2,623,370,641 | 58.51% | 4,483,930,500 |
| 25 | 85,954,167 | 10,596,272 | 1,780,963,456 | 2,713,563,316 | 60.37% | 4,494,526,772 |
| 26 | 42,320,833 | 10,596,272 | 1,745,000,385 | 2,760,122,658 | 61.27% | 4,505,123,043 |
| 27 | 42,320,833 | 10,596,272 | 1,709,037,315 | 2,806,682,000 | 62.15% | 4,515,719,315 |
| 28 | 42,320,833 | 10,596,272 | 1,673,074,245 | 2,853,241,342 | 63.04% | 4,526,315,587 |
| 29 | 42,320,833 | 10,596,272 | 1,637,111,175 | 2,899,800,684 | 63.92% | 4,536,911,859 |
| 30 | 42,320,833 | 10,596,272 | 1,601,148,104 | 2,946,360,027 | 64.79% | 4,547,508,131 |
| 31 | 42,320,833 | 10,596,272 | 1,565,185,034 | 2,992,919,369 | 65.66% | 4,558,104,403 |
| 32 | 23,333,333 | 10,596,272 | 1,548,209,464 | 3,020,491,211 | 66.11% | 4,568,700,675 |
| 33 | 23,333,333 | 10,596,272 | 1,531,233,894 | 3,048,063,053 | 66.56% | 4,579,296,947 |
| 34 | 23,333,333 | 10,596,272 | 1,514,258,323 | 3,075,634,895 | 67.01% | 4,589,893,218 |
| 35 | 23,333,333 | 10,596,272 | 1,497,282,753 | 3,103,206,737 | 67.45% | 4,600,489,490 |
| 36 | 23,333,333 | 10,596,272 | 1,480,307,183 | 3,130,778,579 | 67.90% | 4,611,085,762 |
| 37 | 23,333,333 | 9,804,321 | 1,462,856,442 | 3,158,033,641 | 68.34% | 4,620,890,083 |
| 38 | 23,333,333 | 9,804,321 | 1,445,405,701 | 3,185,288,703 | 68.79% | 4,630,694,404 |
| 39 | 23,333,333 | 9,804,321 | 1,427,954,961 | 3,212,543,765 | 69.23% | 4,640,498,725 |
| 40 | 23,333,333 | 9,804,321 | 1,410,504,220 | 3,239,798,826 | 69.67% | 4,650,303,046 |
| 41 | 23,333,333 | 9,804,321 | 1,393,053,479 | 3,267,053,888 | 70.11% | 4,660,107,368 |
| 42 | 23,333,333 | 9,804,321 | 1,375,602,739 | 3,294,308,950 | 70.54% | 4,669,911,689 |
| 43 | 23,333,333 | 9,804,321 | 1,358,151,998 | 3,321,564,012 | 70.98% | 4,679,716,010 |
| 44 | 23,333,333 | 9,804,321 | 1,340,701,257 | 3,348,819,074 | 71.41% | 4,689,520,331 |
| 45 | 0 | 9,804,321 | 1,346,583,850 | 3,352,740,802 | 71.35% | 4,699,324,652 |
| 46 | 0 | 9,804,321 | 1,352,466,442 | 3,356,662,531 | 71.28% | 4,709,128,973 |
*Inflation impact on circulating supply
The inflation has the following impact on the circulating supply:
- 40% of yearly inflation goes into circulation through rewards for Delegators and Validators. This portion directly increases the circulating supply.
- 60% of yearly inflation goes to the below described treasury buckets, remaining outside of the circulating supply initially.
**Unlocked tokens ≠ tokens in circulation
According to the methodologies of CoinMarketCap and CoinGecko, tokens distributed during a public sale are part of the circulating supply, even if they remain locked. As a result, the 6% CoinList sale allocation are added to the circulating supply as of December 6, 2024. This update increases the circulating supply from 376,976,863 to 624,514,387 PEAQ on that date.
peaq foundation managed addresses
The following addresses are managed by the peaq foundation and not considered part of the circulating supply:
- Community (Community Reserve): 0xe0a4B8d19Fb1E80b4EFbBd30Bd3D3a4158Db9d8F
- Network Security (Security Reserve): 0x355A1EC71E87777Cf77e3181f96A2825073f1913
- Ecosystem & Treasury (Reserve): 0x4b4c2aABaDA91534B217a5B70E3b43A678F88D49
- Ecosystem & Treasury (Grants): 0x46E967F90f9426823603db6765123Ba27AB983C0
- Ecosystem & Treasury (Expansion Reserve): 0x7B38b140d02635f5a983E14467D70e7fE829e455
Important note: locked tokens can be staked
The vesting and lockup schedule applies only to the initial allocations of the total supply at genesis and does not apply to newly minted tokens generated by inflation. Tokens, regardless of their status (locked, unlocked, or under vesting), are eligible for staking. Users can participate as validators or delegators and stake their tokens. Staking rewards are immediately available and fully unlocked upon receipt.
Important note: the unlock process may vary slightly
Certain allocations are not locked or vested immediately at genesis. Specifically, unlock schedules related to community and ecosystem growth campaigns are based on projections and cannot be precisely determined at the outset. These unlocks are calculated using estimates and may be subject to adjustments over time.
Inflation and transaction fee distribution
The PEAQ token follows a disinflationary model, starting with an inflation rate of 3.5%, which decreases by 10% annually until it reaches 1%.
Newly minted tokens and transaction fees are allocated to:
- Validators and Delegators — 40%
- Security Treasury — 10%
- General Treasury — 25%
- DePIN Treasury — 20%
- Machine Subsidization Treasury — 5%
1. Validators and Delegators - modlpoolStake
This pool ensures efficient, reliable, and censorship-resistant block propagation. All funds are distributed directly to validators and delegators based on the validator's total stake and those of the delegators. Several months after the TGE, the logic will be updated to enable validators to set custom delegator fees.
2. Security Treasury - modlpoolCoret
Funds in this pool are used to add additional security to peaq, such as the purchase of Coretime from Polkadot, which significantly increases peaq’s security and censorship resistance and provides peaq with one of the highest Nakamoto Coefficients [decentralization index] in the industry.
3. General Treasury - modlpy/trsry
The funds of this pool finance the ongoing operations of the ecosystem, supporting further research and development around the network, its core function set, and other key features.
4. DePIN Treasury - modlpoolDPInc & modlpoolDPStk
Funds allocated here will be dedicated to incentivizing and rewarding the on-chain growth and overall growth of DePINs building on peaq, as well as financing dedicated tooling and infrastructure for DePINs.
5. Machine Subsidization Treasury - modlpoolSubsi
These funds are used to subsidize bringing connected, revenue-generating machines, vehicles, robots and devices onto the peaq blockchain for use on DePINs building on peaq.
Initial control of treasury pools
Until on-chain governance is introduced, all Treasury pools are managed by the peaq foundation. The Validators and Stakers pool is not managed by the peaq foundation.
Updating the distribution
The above distribution presents an initial proposal by the peaq foundation. With future updates, the community will be able to adjust the distribution and usage of funds by voting via on-chain governance mechanisms.
- Utility
- Inflation
- Allocation at genesis
- Unlocks
- *Inflation impact on circulating supply
- **Unlocked tokens ≠ tokens in circulation
- peaq foundation managed addresses
- Important note: locked tokens can be staked
- Important note: the unlock process may vary slightly
- Inflation and transaction fee distribution
- Initial control of treasury pools
- Updating the distribution