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 blockchains, 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 onchain governance concerning its development and future. Initial Post-Launch Period: Community suggestions are gathered via polls, AMAs, and calls. The foundation holds veto power to safeguard stability. Midterm: Governance shifts onchain. PEAQ holders, the Council and the Technical Committee can propose upgrades, parameter changes, or treasury spending. Council decisions can be overturned by the community; the Technical Committee can fast-track urgent or block risky proposals. Longterm: A fully open, advanced onchain governance model enables any PEAQ holder to propose changes and vote transparently onchain. Safeguards promote broad participation and approved proposals are implemented automatically. The community also manages funds via onchain governance.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. The first disinflation will occur at target block 7,890,590. In the future, the community will be able to vote on adjustments to the inflation/deflation model via the network’s governance.Disinflation Schedule
The following table outlines the disinflation schedule, showing the inflation rate each year, newly minted tokens, and end-of-year supply:
The schedule above reaches 5,667,620,228.64 PEAQ at the end of year 17. That figure is the projected supply under the schedule, not a hard cap: the runtime enforces no maximum supply today, and the 1% floor keeps minting after year 17. A supply cap will be added in a later runtime upgrade.
Economics 2.0
The economics 2.0 contracts went live on peaq mainnet on 2026-09-01 (paper). Machine bonds are held in the MachineSubscription contract and count as circulating supply. The runoff burn will reduce total supply once a native burn path exists. Today the burn address is unset, so total supply does not fall yet.Allocation at genesis
The table is horizontally scrollable →Unlocks
Inflation impact on circulating supply
The inflation has the following impact on the circulating supply:- 40% of yearly inflation is paid out as rewards to validators and delegators.
- 60% of yearly inflation goes to the treasury pools described below.
Circulating supply
Circulating supply is the transferable PEAQ balance as reported by Subscan (available_balance). CoinMarketCap and CoinGecko republish that figure. No wallets are excluded, foundation-managed or otherwise. PEAQ bonded by machines under economics 2.0 (machine bonds) stays part of the circulating supply. This definition applies from 2026-09-03.
Earlier history: on December 6, 2024 the 6% CoinList sale allocation was added to the reported circulating supply, following the CoinMarketCap and CoinGecko rule that public-sale tokens count even while locked. That moved the reported figure from 376,976,863 to 624,514,387 PEAQ on that date.
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: The split below is the one live on mainnet today. It changes to 70% treasury / 30% validators and delegators with the economics 2.0 runtime upgrade (spec 113), which is not yet enacted.Security
1. Validators and Delegators — 40% - modlpoolStake This pool ensures efficient, reliable, and censorship-resistant block production. All funds are distributed directly to validators and delegators based on the validator’s total stake and those of the delegators. Validators can set custom delegator fees. 2. Security Treasury — 10% - modlpoolCoret Funds in this pool are used to add additional security to peaq, such as the purchase of Coretime, which significantly increases peaq’s security and censorship resistance and provides peaq with the highest Nakamoto Coefficients [decentralization index] in the industry.General Treasury
3. General Treasury — 25% - 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.Native Incentive Pools
4. DePIN Incentive Pool — 20% - modlpoolDPInc & modlpoolDPStk Funds allocated here are dedicated to incentivizing and rewarding the on-chain expansion of DePINs building on peaq, supporting their liquidity across various Machine DeFi protocols, and financing dedicated tooling and infrastructure for their development. 5. Machine Subsidization Pool — 5% - modlpoolSubsi These funds are used to subsidize the onboarding of connected, revenue-generating machines, vehicles, robots, and devices onto peaq as Machine RWAs, and to support their liquidity across various Machine DeFi protocols.Initial control of treasury pools
Until on-chain governance is introduced, all Treasury pools are managed by the peaq foundation. The Validators and Delegators 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.Treasury Transparency Reporting
The following tables track treasury transactions across the various treasury pools. In June 2026, the peaq foundation began consolidating tokens held across several treasury pools into the central Ecosystem & Treasury Reserve (5HXnNA…aYd5Ea / EVM 0x4b4c…D49). The on-chain pools (General Treasury, Security Treasury, DePIN Incentive, DePIN Staking, and Machine Subsidization) send their holdings to a foundation-controlled aggregation wallet (5Dkn5f…Md4Mf6). From there, 130,000,000 PEAQ has been forwarded to the Reserve in two transfers (70,000,000 on 2026-06-23 and 60,000,000 on 2026-06-29, each routed through intermediary wallet 5GU73Q…UrsWuT). A 6,000,000 PEAQ transfer to the Council wallet on 2026-06-22 was returned in full on 2026-06-29. The General Treasury sent 54,687,091 PEAQ to the aggregation wallet on 2026-06-24 and a further 4,959,830 PEAQ on 2026-08-28. On 2026-08-28 the Community Reserve and the Security Reserve sent their full balances to the Ecosystem & Treasury Reserve; both pools are now empty. The Ecosystem & Treasury Reserve is the single consolidated pool. Tables A–D below record each treasury pool’s outflows. Table E records how the aggregated funds were distributed. Table F records movements into and out of the Ecosystem & Treasury Reserve itself. All amounts are in PEAQ and link to the corresponding transaction on Subscan. These tables will be updated as transactions occur. A. General Treasury Transactions
B. Security Treasury Transactions
C. DePIN Incentive Pool (modlpoolDPInc & modlpoolDPStk) Transactions
D. Machine Subsidization Pool Transactions
E. Reserve Consolidation (from aggregation wallet 5Dkn5f…Md4Mf6)
This table records how the funds aggregated from pools A–D were distributed.
As of 2026-09-03, a working balance of 10,233,420.79 PEAQ remains in the aggregation wallet.
F. Ecosystem & Treasury Reserve (5HXnNA…aYd5Ea / EVM 0x4b4c…D49) Movements
This table records inflows to and outflows from the Reserve other than the aggregation-wallet transfers in Table E.
As of 2026-09-03, the Ecosystem & Treasury Reserve holds 844,972,528 PEAQ.