peaq network (PEAQ) Tokenomics

The peaq network is a Layer-1 blockchain specifically designed for Decentralized Physical Infrastructure Networks (DePINs) and the Internet of Things (IoT). Its token economics are structured to support long-term sustainability, network security, and the growth of a decentralized machine economy.

Issuance Mechanism

The PEAQ token operates under a disinflationary economic model. The total maximum supply is capped at 4.2 billion tokens.

• Initial Inflation: The network launched with an initial annual inflation rate of 3.5%.
• Disinflationary Schedule: This rate is programmed to decrease by 10% each year.
• Terminal Inflation: The inflation rate will continue to decline until it stabilizes at 1%, which is projected to occur approximately 12 years after the mainnet launch.
• Governance Oversight: This model is subject to change through on-chain governance, allowing token holders to vote on future adjustments to the economic framework.

Allocation Mechanism

The initial distribution of PEAQ tokens was designed to balance the needs of early supporters, core contributors, and the broader community.

Usage and Incentive Mechanism

The PEAQ token serves as the lifeblood of the ecosystem, providing utility across several core functions:

• 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 them, earning rewards for maintaining network integrity. As of late 2025, approximately 47.4% of the total issuance was staked.
• Governance: Token holders will eventually have the right to vote on key decisions, including network updates, economic policies, and ecosystem grants.
• Machine Reputation: A unique future utility involves "Machine Reputation Proof." Machine owners can stake PEAQ on their devices to vouch for their reliability. If a machine fails to perform, the stake can be slashed.
• Machine DeFi and Tokenization: The network enables the tokenization of physical machines (Real World Assets), allowing for fractional revenue sharing and integration into DeFi protocols.

Locking and Unlocking Mechanism

The vesting and locking schedules vary significantly by allocation category to ensure long-term alignment:

• Pre-Seed & Seed: These allocations feature a 6-month lock-up followed by a 24-month vesting period. There is a 5% release immediately after the lock-up ends.
• Private & Pre-Launch Private Sales: These involve a 6-month lock-up and an 18-month vesting period, with a 7.5% release after the lock-up.
• Core Team & EoT Labs: Both categories have a 9-month lock-up and a 36-month vesting period.
• Community Initiatives: These tokens have a 36-month vesting period but no initial lock-up.
• Ecosystem & Treasury: These funds vest over 48 months with no lock-up.
• Network Security: This allocation has the longest vesting period at 54 months with no lock-up.

Unlocking Timeline

The token supply enters circulation gradually. A significant portion of the supply (39.26%) was unlocked at the Token Generation Event (TGE) on November 12, 2024. Subsequent major unlock events occur monthly.

• Q2 2025: Approximately 294.1 million tokens were projected to enter circulation.
• Q3 2025: Approximately 327.3 million tokens were scheduled for unlock.
• Long-term Projection: The unlocking process is scheduled to continue through July 2028, at which point 100% of the initial 4.2 billion token allocation will have completed its unlock cycle. Monthly unlocks in the final year (2028) are approximately 23.3 million tokens per month.