Economics 2.0

Economics 2.0 (Tokenomics 2.0 in the code) is the contract set that prices machine activation in USD, bonds PEAQ per machine on a subscription tier, and settles the network’s economics through trust validators. It is live on peaq mainnet and replaces the fixed 1 PEAQ bond of the earlier IdentityRegistry model. The paper is at peaq.xyz/economics-2-0; this page documents what the deployed contracts do. Live figures (activated machines, PEAQ bonded, tier prices at the current oracle rate) are on the Machine Explorer.

What is live

Piece	State	Where
18 Economics 2.0 contracts	Live on peaq mainnet	Contracts
Price oracle	One trust validator node, run by peaq, commits the PEAQ/USD price daily	Trust validators
Machine activation	Live from the SDKs and the CLI	Activate
Machine management (suspend, resume, renew, transfer, DID updates)	Live in the same versions	CLI: machine
USDT settlement of the bond	Not configured on peaq mainnet: `SubscriptionTokenProvisionPool` has no USDT token set, so `--payment usdt` and the `WithUsdt` methods fail. Pay the bond in PEAQ	Activate
Legacy machine mirroring	Operated by peaq for partner fleets; mirrored machines are owned by `MachineMigrationHub`	Legacy machines
Agung testnet deployment	Deployed as `agung-2026-08-28`. It runs an older contract build than peaq mainnet (no tier change on renewal, bridging off, different tier prices), so results there can differ from mainnet	Contracts
2.0 MCR API (ratings and monetization for 2.0 machines)	Live at `mcr.peaq.xyz`: monetization opt-in through the SDKs and CLI, ratings over HTTP by decimal machine ID. The SDK query helpers are `queryMcr`, `queryMachine` and `queryOperatorMachines`; the CLI reads it with `qualify mcr` and `show`	API reference
Machines homed on Solana	Live with CLI 0.0.19 and both SDKs at 0.11.2: the owner pays the bond on Solana in PEAQ or USDC, and peaq’s trust validator node books it on peaq. The CLI and both SDKs manage Solana machines and submit their events	Onboard a machine on Solana
Cross-chain machine relocation	Disabled on chain (`InfoDesk.isMachineRelocationEnabled()` is false; `isBridgingEnabled()` is true); SDKs expose status reads only. Solana is registered as the first peer	Omni-chain
Trust validator staking (permissionless)	Contract live, no validators staked; not exposed in SDKs or CLI	Trust validators
PEAQ Flow (staking 30 / Machine Pool 30 / treasury 20 / Activation Token Provision Pool 20)	Live, paid on chain every block	Tokenomics

Activation and the bond

One transaction to MachineStateAndSync.activateMachine mints the machine’s ERC-721 in MachineRegistry, stores its DID document, bonds PEAQ in MachineSubscription on a tier, and records peaq as the home chain in CrossChainMirror. The sender is the owner and the payer. The bond is quoted in USD per tier and converted to PEAQ at the oracle rate when you call:

bondAmount     = MachineSubscription.requiredPeaqAmount(tier)   // tierPriceUsd(tier) / latest PEAQ price
voucherCredit  = min(pendingVoucherCredit(owner), bondAmount)
netPeaqAmount  = bondAmount - voucherCredit                      // what leaves your wallet

Only the net amount is transferred (spender MachineSubscription). The machine’s recorded bond stays at the full amount. A voucher can cover the whole bond, in which case nothing is transferred and the machine is still bonded in full. The bond is not withdrawable. It stays bonded while the subscription is renewed, and unwinds through grace and runoff when it is not.

Tiers

Tier	Value	USD price per period, as configured in `InfoDesk`
Entry	`0`	$0.02
Basic	`1`	$0.20
Pro	`2`	$40.00

Tier prices are protocol parameters set by governance (InfoDesk.setTierPriceUsd), quoted per 365-day period. When governance changes a price, the quote changes with it. Always preview before you spend: peaqos activate ... --dry-run, previewMachineActivation, or preview_machine_activation. The PEAQ figure moves with the oracle price every day; the preview prints it. Tiers also carry points that weight bonding rewards per operator. Higher tiers earn more points per machine.

Paying in USDT

Not available on peaq mainnet: SubscriptionTokenProvisionPool has no USDT token configured, so USDT settlement fails. Pay the bond in PEAQ. On a deployment where the token is set, --payment usdt (CLI) or activateMachineWithUsdt / activate_machine_with_usdt (SDKs) settles the PEAQ-quoted bond in USDT through SubscriptionTokenProvisionPool, which performs the conversion. You approve a maximum USDT amount derived from the quote and your accepted slippage; the call never spends more than that maximum. The bond, the voucher credit, and the net amount stay denominated in PEAQ.

Subscription lifecycle

Parameters in InfoDesk on peaq mainnet:

Parameter	Value
Subscription period	365 days
Grace	14 days after the period ends. No decay.
Runoff	14 days after grace. The bond decays linearly to zero.
Epoch (settlement cadence)	12 hours

Active ──period ends──► Grace (14 d) ──► Runoff (14 d, linear decay) ──► Terminated
   ▲                        │                    │
   └──────── renew ─────────┴────────────────────┘

Renew at any point in Active, Grace, or Runoff. Renewal extends from the stored period end, not from now, and cures Grace or Runoff immediately. It keeps the stored tier. The contracts also allow a tier change, up or down, once the period has ended (Grace or Runoff), priced at the full bond of the new tier, and refuse one while the machine is Active, but the published deployment records do not enable tier selection on renewal: peaqos machine subscription renew --tier and the SDKs’ tier parameter fail with RENEWAL_TIER_UNSUPPORTED before anything is sent, and a renewal keeps the stored tier.
Runoff moves the decayed part of the bond half to the burn address and half to the treasury (InfoDesk.treasury(), the TreasuryPool contract), applied by the daily settleLifecycle run, so at most one step per day. The burn address in InfoDesk is unset, so the burn half does not reduce supply yet.
Terminated machines are retired: the NFT is burned and the subscription record deleted. A machine that is relocating is never terminated mid-flight.
Fraud termination (protocol owner only) forfeits the whole bond immediately, 50% to the burn address and 50% to the treasury. The burn half does not reduce supply until the burn address is set.
Suspend / resume is a flag the owner or controller sets on the machine, for example to mark it as under maintenance. It is a signal to operators and does not change the subscription: the period end, grace, runoff and bond decay continue while a machine is suspended, and renewal is due on the same date.

Credits, not payouts

Bonding rewards and onboarding vouchers are never paid out as PEAQ to a wallet. Two kinds of credit accrue to the machine owner and are redeemed against the next bond:

Credit	Earned by	Redeemed on
Bonding reward credit	Holding active, bonded machines (weighted by tier points)	Renewal
Onboarding voucher credit	Reported service revenue during the trailing 90-day window	Activation of a new machine

Both are funded from the same surplus (epochPool, whatever PEAQ sits in MachineSubscription beyond bonds, committed credits and pending runoff payouts; the Machine Pool’s 30% of block rewards refills it every block) and split by one protocol parameter each epoch. A controller who pays for a renewal does not receive the credit; it lands on the owner.

Machine ID and DID

machineId = uint256(keccak256(abi.encode(machineType, credentialSubject)))
did       = did:peaq:<machineId as decimal>

The machine ID is the ERC-721 token ID. It is a full uint256 (bigint in JavaScript, int in Python, a decimal string on every wire). There is no mapping from legacy sequential IDs or from did:peaq:0x<address>: a legacy machine that migrates gets a new 2.0 ID. See peaqID.

Ownership and control

Role	Rights
Owner (holds the NFT)	Transfer the NFT, set or clear the controller, everything the controller can do
Controller (DID `controller`)	Suspend, resume, renew, update verification methods, authentication, and service endpoints

Transferring the NFT moves ownership and retains the controller. There is no operator-sponsored activation: the account that signs activateMachine owns the machine and pays the bond. Fleets use machine-owned, operator-controlled activation; see Fleet onboarding.

Trust validators

Three different roles are easy to confuse. Keep them apart:

Role	What it is	State
Validators (chain)	The collators that produce peaq blocks through the `parachainStaking` pallet	Unchanged by Economics 2.0. See Becoming a validator.
Trust validator node	An allowlisted account (`InfoDesk.isTrustValidator`) that commits currency prices to `PriceOracle` daily, runs the settlement functions (`settleLifecycle`, `settleEpoch`, `settleRevenueWindow`), books bonds paid on Solana onto peaq through `RemoteBondSettlement`, pushes subscription status to Solana, delivers the sync messages between peaq and Solana (the owner can switch a message type to LayerZero) and returns PEAQ from the Solana vault to peaq	One node, run by peaq.
Trust validator staking	Permissionless staking and delegation in `TrustValidatorStaking`	Contract live on mainnet, no validators staked yet. Not exposed in the SDKs or CLI.

Until the oracle holds a price, activateMachine reverts with PriceNotAvailable. Prices are 8-decimal USD values keyed by keccak256("PEAQ").

Coordination fees and x402

CoordinationFeeCollector can charge a per-tier USD coordination fee on machine services and accepts x402-style payments through EIP-3009 transferWithAuthorization. The fee is configured at 0 for every tier, so no coordination fee is collected today. When it is set, the collector splits it half to the treasury address and half to TrustValidatorStaking, and the rest of a payment stays claimable by the machine owner. Not exposed in the SDKs or CLI.

Legacy machines

Machines onboarded under Tokenomics 1.0 (IdentityRegistry, 1 PEAQ native bond, separate MachineNFT) keep working on the 1.0 contracts. MachineMigrationHub mirrors them into Economics 2.0: peaq mirrors a legacy machine as a 2.0 machine owned by the hub, and the hub pays the tier bond. Handing the permanent 2.0 ID to the machine’s owner is a later step. Mirroring is operated by peaq for partner fleets and is not exposed in the SDKs or the CLI. A mirrored machine’s legacy 1 PEAQ bond stays in IdentityStaking; the 2.0 tier bond is bonded in addition.

Cross-chain relocation

Economics 2.0 relocates a whole machine record between registered chains through MachineBridgeAdapter and CrossChainMirror (LayerZero V2 transport). This differs from the 1.0 Machine NFT bridge, which moves only the NFT. Relocation is switched off on peaq mainnet and agung (InfoDesk.isMachineRelocationEnabled() is false), and the SDKs expose relocation status reads only. The 1.0 bridgeNft / bridge_nft path throws MACHINE_RELOCATION_UNAVAILABLE in Tokenomics mode. See Omni-chain. Solana mainnet is the first registered relocation peer: peaq’s MachineBridgeAdapter has the Solana adapter’s store account as its LayerZero peer (protocol chain 5, LayerZero EID 30168), and the eleven Solana programs are live. No machine can relocate while the flag is off. Program IDs are on Smart contracts. Relocation is disabled on chain, so a machine gets to Solana by being created there: the peaq operator registers the Solana owner wallet once, the owner pays the tier’s bond on Solana (in PEAQ, or in USDC swapped to exactly the bond) through MachineSubscriptionTerminal, peaq’s trust validator node books it on peaq, and the owner mints the machine and sends the link push back to peaq, which the node delivers. Points, vouchers and the subscription record live on peaq; the identity, DID document and NFT are Solana accounts. See Onboard a machine on Solana.

Activate: the one-transaction onboarding
Smart contracts: addresses on peaq mainnet and agung
Tokenomics: supply, inflation, the block reward split, and the wallet consolidation
CLI: machine: lifecycle, subscription, ownership, and DID commands

Welcome

Get Started

Concepts

Functions

Guides

Economics 2.0

What is live

Activation and the bond

Tiers

Paying in USDT

Subscription lifecycle

Credits, not payouts

Machine ID and DID

Ownership and control

Trust validators

Coordination fees and x402

Legacy machines

Cross-chain relocation

​What is live

​Activation and the bond

​Tiers

​Paying in USDT

​Subscription lifecycle

​Credits, not payouts

​Machine ID and DID

​Ownership and control

​Trust validators

​Coordination fees and x402

​Legacy machines

​Cross-chain relocation

​Related

What is live

Activation and the bond

Tiers

Paying in USDT

Subscription lifecycle

Credits, not payouts

Machine ID and DID

Ownership and control

Trust validators

Coordination fees and x402

Legacy machines

Cross-chain relocation

Related