> ## Documentation Index
> Fetch the complete documentation index at: https://docs.peaq.xyz/llms.txt
> Use this file to discover all available pages before exploring further.
# Economics 2.0
> How machine activation, subscription bonds, credits, and trust validators work under peaq Economics 2.0, and what is live on peaq mainnet.
export const KeyTerms = ({all = {}, ids = [], title = "Key terms in this guide"}) =>
{title}
{ids.map(id => {
const t = all[id] || ({});
return
{t.term}. {t.def}
;
})}
;
export const G = {
onchain: {
id: "onchain",
cat: "chain-infra",
term: "On-chain vs off-chain",
def: "On-chain means written to the shared public ledger every machine agrees on: permanent and readable by anyone. Off-chain means kept on a normal private server instead."
},
blockchain: {
id: "blockchain",
cat: "chain-infra",
term: "Chain / blockchain",
def: "A shared, tamper-resistant public database maintained by a whole network of computers with no single owner. Different chains are separate such networks."
},
peaqChain: {
id: "peaqChain",
cat: "chain-infra",
term: "peaq chain",
def: "The machine-focused blockchain peaqOS uses as home base for identity and credit records."
},
transaction: {
id: "transaction",
cat: "chain-infra",
term: "Transaction (tx) / tx hash",
def: "A single signed request that changes the ledger. Its hash is a unique, receipt-like ID you can use to look it up later."
},
rpcUrl: {
id: "rpcUrl",
cat: "chain-infra",
term: "RPC URL / endpoint",
def: "The network address your code calls to read from or write to a chain, like the base URL of the chain's API server."
},
mainnet: {
id: "mainnet",
cat: "chain-infra",
term: "Mainnet / testnet (agung)",
def: "Mainnet is the real, live network where tokens have real value. Testnet is a free practice copy with worthless tokens; peaq's is called agung."
},
evm: {
id: "evm",
cat: "chain-infra",
term: "EVM / EVM-compatible",
def: "The Ethereum Virtual Machine: the standard runtime many chains share, so the same 0x... addresses and tools work across all of them. peaq is EVM-compatible."
},
node: {
id: "node",
cat: "chain-infra",
term: "Node (RPC node)",
def: "A server running the blockchain software that holds a copy of the ledger and answers queries. NOT a ROS 2 node, despite the shared word."
},
chainId: {
id: "chainId",
cat: "chain-infra",
term: "Chain ID",
def: "A number that uniquely labels a chain so software doesn't confuse networks (peaq is 3338, Base is 8453)."
},
precompile: {
id: "precompile",
cat: "chain-infra",
term: "Precompile",
def: "A built-in function baked into the chain at a fixed address that acts like a contract but runs as faster native code. The batch one bundles several actions into one all-or-nothing transaction."
},
dataHash: {
id: "dataHash",
cat: "chain-infra",
term: "Data hash (keccak256)",
def: "A short, fixed-length fingerprint of a file, stored on-chain instead of the file itself, so data can be verified later while the raw data stays off-chain."
},
wallet: {
id: "wallet",
cat: "wallet-keys",
term: "Wallet",
def: "An account on the chain, identified by a public address, that holds a machine's funds and approves its actions. Really just a pair of keys, not a place money is stored."
},
keypair: {
id: "keypair",
cat: "wallet-keys",
term: "Keypair",
def: "The two matched secrets behind a wallet: a public address you can share, and a private key you keep secret that signs actions."
},
privateKey: {
id: "privateKey",
cat: "wallet-keys",
term: "Private key",
def: "The secret string that proves you control a wallet. Anyone who has it has full control, like a master password that can never be reset."
},
sign: {
id: "sign",
cat: "wallet-keys",
term: "Sign / signature",
def: "Using your private key to produce a cryptographic stamp proving you approved a specific action, without ever revealing the key."
},
signer: {
id: "signer",
cat: "wallet-keys",
term: "Signer / signing identity",
def: "The wallet whose private key authorizes an action: the account the network treats as the one taking it. NOT a file or an app."
},
address: {
id: "address",
cat: "wallet-keys",
term: "Address (0x...)",
def: "The public 0x... identifier of a wallet or contract you can freely share so others can send to it or look it up, like an account number."
},
eoa: {
id: "eoa",
cat: "wallet-keys",
term: "EOA (externally owned account)",
def: "A plain wallet controlled directly by a private key, as opposed to one controlled by code. Here, the account that IS the machine."
},
ows: {
id: "ows",
cat: "wallet-keys",
term: "OWS / wallet vault",
def: "An open standard for storing wallet keys in an encrypted local file (a vault) with a backup phrase and an activity log, instead of a bare key in a text file."
},
passphrase: {
id: "passphrase",
cat: "wallet-keys",
term: "Passphrase (OWS_PASSPHRASE)",
def: "The password that unlocks the encrypted wallet vault so its key can be used to sign."
},
mnemonic: {
id: "mnemonic",
cat: "wallet-keys",
term: "Mnemonic / seed phrase",
def: "A list of 12 or 24 ordinary words that encodes a wallet's secret key, used to back it up and recover it. Whoever has the words controls the wallet."
},
derivation: {
id: "derivation",
cat: "wallet-keys",
term: "Derivation path",
def: "The deterministic recipe that turns one backup phrase into many specific keys and addresses, one per network or index."
},
challenge: {
id: "challenge",
cat: "wallet-keys",
term: "Challenge (sign-to-prove)",
def: "A login-style handshake: the server sends a random message, you sign it with your key, and the signature proves you control the account without sending the key."
},
eip191: {
id: "eip191",
cat: "wallet-keys",
term: "EIP-191 / personal_sign",
def: "A standard way to sign a plain message to prove you control an account, without sending any on-chain transaction."
},
did: {
id: "did",
cat: "identity",
term: "DID / peaqID",
def: "A globally unique, self-owned ID for a machine that lives on the chain and isn't issued by any single company. peaqID is peaq's version, written did:peaq:0x..."
},
register: {
id: "register",
cat: "identity",
term: "Register a machine",
def: "Putting a machine on the network for the first time, which gives it an ID, a DID, an ownership token, and a locked deposit. Under Economics 2.0 this is one activateMachine call signed by the machine's owner; registerMachine and registerFor are the older Tokenomics 1.0 calls."
},
machineId: {
id: "machineId",
cat: "identity",
term: "Machine ID",
def: "Your machine's handle in every later call. Under Economics 2.0 it is derived from the machine type and credential subject (a large uint256, written as a decimal string); Tokenomics 1.0 machines got a small sequential number."
},
ownerOperator: {
id: "ownerOperator",
cat: "identity",
term: "Owner / operator",
def: "The owner owns a machine; the operator runs it. They can be the same account (self-managed) or different (proxy-managed)."
},
proxyOperator: {
id: "proxyOperator",
cat: "identity",
term: "Proxy operator",
def: "One account that registers and manages many machines on behalf of their owners, so a fleet operator can handle a whole fleet from one wallet."
},
didAttributes: {
id: "didAttributes",
cat: "identity",
term: "DID attributes",
def: "Public name-value facts (a docs link, a data endpoint) attached to a machine's DID and stored on-chain for anyone to read. Writing them is a separate transaction from registration."
},
pairing: {
id: "pairing",
cat: "identity",
term: "Pairing / pairing token",
def: "The verified link between an AI agent and a machine, set up by signing a challenge. The pairing token is the signed credential the agent sends with each request, like a temporary access badge."
},
hardwareAttestation: {
id: "hardwareAttestation",
cat: "identity",
term: "Hardware attestation",
def: "A tamper-resistant chip on the machine cryptographically vouching that it's genuine hardware, so its identity can't be faked in software. This is the Verify layer."
},
gas: {
id: "gas",
cat: "tokens-economics",
term: "Gas",
def: "The small fee, paid in the chain's token, that every action writing to the ledger costs, like a per-write transaction cost."
},
peaqToken: {
id: "peaqToken",
cat: "tokens-economics",
term: "PEAQ (token)",
def: "The peaq network's own token, used to pay gas fees and to lock up as the deposit when registering a machine."
},
gasStation: {
id: "gasStation",
cat: "tokens-economics",
term: "Gas Station / faucet",
def: "A peaq service that hands a brand-new, empty wallet a tiny starting amount of tokens so it can afford its first network fees. Gated by 2FA."
},
bond: {
id: "bond",
cat: "tokens-economics",
term: "Bond",
def: "PEAQ locked when a machine activates, proving skin in the game. Under Economics 2.0 it is priced per tier in USD and converted to PEAQ at the oracle rate, and it is not withdrawable; Tokenomics 1.0 machines locked a fixed 1 PEAQ. Bonded means the deposit is in place."
},
nft: {
id: "nft",
cat: "tokens-economics",
term: "NFT",
def: "A unique, one-of-a-kind ownership token recorded on the chain. Unlike a coin, no two are interchangeable."
},
mint: {
id: "mint",
cat: "tokens-economics",
term: "Mint / minting",
def: "Creating a brand-new token on the chain and assigning it to an owner, like stamping a fresh serial-numbered certificate into existence."
},
machineNft: {
id: "machineNft",
cat: "tokens-economics",
term: "Machine NFT",
def: "The unique token representing one specific physical machine and its financial profile. It can be sold or bridged on its own, separate from the machine's identity."
},
identityNft: {
id: "identityNft",
cat: "tokens-economics",
term: "Identity NFT",
def: "A non-transferable (soulbound) token minted automatically when a machine registers, representing its identity. Its token ID equals the machine ID."
},
tokenId: {
id: "tokenId",
cat: "tokens-economics",
term: "Token ID",
def: "The unique number identifying one specific token within a collection, like a serial number."
},
mcr: {
id: "mcr",
cat: "tokens-economics",
term: "Machine Credit Rating (MCR)",
def: "A creditworthiness score for a machine (a Moody's-style grade AAA down to NR, plus a 0-100 number) computed from its recorded earnings and activity. Like a credit score for a robot."
},
mcrApi: {
id: "mcrApi",
cat: "tokens-economics",
term: "MCR API",
def: "The public web service you call to fetch a machine's credit score and profile as JSON, and the one place a machine's monetization is switched on or off with a signed message. No login needed: reads are open, and the write is authorized by the signature itself."
},
provisioned: {
id: "provisioned",
cat: "tokens-economics",
term: "Provisioned / NR (Not Rated)",
def: "Early MCR statuses. Provisioned means registered and bonded but with too little history to score yet. NR means no grade, because the score is too low or the machine isn't bonded."
},
event: {
id: "event",
cat: "tokens-economics",
term: "Event (revenue / activity)",
def: "A recorded data point about a machine's work, submitted to the chain to feed its credit score. Revenue events report money earned; activity events report work with no money. NOT a ROS topic message."
},
trustLevel: {
id: "trustLevel",
cat: "tokens-economics",
term: "Trust level",
def: "A label on each submitted event saying how strongly its truth is backed: the machine's word (0), a checkable on-chain record (1), or tamper-proof hardware proof (2)."
},
escrow: {
id: "escrow",
cat: "tokens-economics",
term: "Escrow",
def: "Holding a buyer's payment in a neutral locked place until the service is delivered, then releasing it, so neither side has to trust the other first."
},
paymentRail: {
id: "paymentRail",
cat: "tokens-economics",
term: "Payment rail",
def: "The specific method or channel a payment moves through, like choosing card vs bank transfer vs a particular token."
},
x402: {
id: "x402",
cat: "tokens-economics",
term: "x402",
def: "A web payment standard where a server answers 'payment required' with exact instructions, and the buyer's wallet signs an authorization instead of sending a separate transaction — built for machines and agents paying per request."
},
usdt: {
id: "usdt",
cat: "tokens-economics",
term: "USDT",
def: "A stablecoin token meant to hold a value of one US dollar, used to pay service providers without price swings."
},
fractionalize: {
id: "fractionalize",
cat: "tokens-economics",
term: "Fractionalize (ERC-3643)",
def: "Splitting ownership of one machine into many small tradable shares so multiple people can each own a piece. ERC-3643 is the regulated-securities token standard used to do it."
},
smartContract: {
id: "smartContract",
cat: "smart-contracts",
term: "Smart contract / contract address",
def: "A program deployed on the chain that runs exactly as written and that anyone can call, identified by its own 0x... address."
},
registryContracts: {
id: "registryContracts",
cat: "smart-contracts",
term: "Registry contracts",
def: "On-chain programs that each keep an official, lookup-able list: IdentityRegistry tracks which machines exist, EventRegistry stores their events, IdentityStaking holds their deposits."
},
smartAccount: {
id: "smartAccount",
cat: "smart-contracts",
term: "Smart account (ERC-4337)",
def: "A programmable wallet controlled by code instead of a single key, so it can enforce rules like spending limits. Each machine gets one at activation."
},
submitEvent: {
id: "submitEvent",
cat: "smart-contracts",
term: "submitEvent / batchSubmitEvents",
def: "The calls that record one or many of a machine's revenue or activity entries onto the chain."
},
revert: {
id: "revert",
cat: "smart-contracts",
term: "Revert",
def: "When an on-chain call is rejected and fully undone because a rule was broken, leaving no changes and usually a named error."
},
soulbound: {
id: "soulbound",
cat: "smart-contracts",
term: "Soulbound",
def: "A token that can never be transferred or sold and stays permanently attached to one owner. The Identity NFT is soulbound."
},
bridge: {
id: "bridge",
cat: "cross-chain",
term: "Bridge / bridging",
def: "Moving a token from one chain to another, so the same Machine NFT can exist on a different chain. peaq and Base are live today; bridging is mainnet-only."
},
base: {
id: "base",
cat: "cross-chain",
term: "Base",
def: "Another blockchain network (built by Coinbase) that peaqOS can move Machine NFTs to and from. Paying fees on Base needs Base ETH."
},
omniChain: {
id: "omniChain",
cat: "cross-chain",
term: "Omni-chain / cross-chain",
def: "Working across many separate chains at once, so a machine's identity and credit created on peaq can be read or used on other chains."
},
homeChain: {
id: "homeChain",
cat: "cross-chain",
term: "Home chain",
def: "The chain where a record's canonical, authoritative copy lives. For peaqOS that is peaq chain; every other chain holds a mirror."
},
satelliteChain: {
id: "satelliteChain",
cat: "cross-chain",
term: "Satellite chain",
def: "A chain carrying a read-only, automatically synced mirror of home-chain records, so apps there can use them without crossing back to the home chain."
},
sourceChainId: {
id: "sourceChainId",
cat: "cross-chain",
term: "sourceChainId / sourceTxHash",
def: "Two fields recording which chain an action happened on and its hash there, so a cross-chain event can be traced back and verified."
},
machineAgent: {
id: "machineAgent",
cat: "general-web3",
term: "Machine Agent",
def: "A third-party AI program (Claude, OpenAI, a custom bot) paired to a machine and given limited permission to find, buy, and pay for services on its behalf."
},
delegationPolicy: {
id: "delegationPolicy",
cat: "general-web3",
term: "Delegation policy",
def: "The rules an owner gives an AI agent that cap how much it can spend per transaction and per day and which services it may use, so it transacts within guardrails."
},
machineMarkets: {
id: "machineMarkets",
cat: "general-web3",
term: "Machine Markets / Service Registry",
def: "peaqOS's marketplace where machines list services they offer (Service Registry) and where agents discover, order, pay for, and run services from others."
},
sdk: {
id: "sdk",
cat: "general-web3",
term: "SDK (peaq-os-sdk)",
def: "peaq's code library (Python and JS) you install to call all this functionality without writing low-level blockchain calls yourself."
},
stream: {
id: "stream",
cat: "data-stream",
term: "Stream (Data-as-a-Service)",
def: "The peaqOS function where a machine sells the data it generates: it signs the data, encrypts what's sensitive, and grants buyers access. Selling data, as opposed to selling capacity (that's Monetize)."
},
edgeAgent: {
id: "edgeAgent",
cat: "data-stream",
term: "peaqOS Edge Agent",
def: "Software that runs on the machine itself (as a ROS 2 node) and signs, encrypts, and ships the data it produces. The on-machine half of Stream."
},
dataPackage: {
id: "dataPackage",
cat: "data-stream",
term: "Signed data package",
def: "A bundle of machine data stamped with the machine's identity (DID, timestamp, sequence number) and a signature, so anyone can prove which machine produced it and that it wasn't altered."
},
dataEventMap: {
id: "dataEventMap",
cat: "data-stream",
term: "Data Event Map",
def: "The policy file a machine owner writes to control what streams out: which topics to read, which fields to keep, drop, or encrypt, and where the signed data goes."
},
chunk: {
id: "chunk",
cat: "data-stream",
term: "Chunk",
def: "A bounded, individually encrypted slice of a data stream (by time window or size). The unit a buyer actually purchases and decrypts."
},
chunkChain: {
id: "chunkChain",
cat: "data-stream",
term: "Chunk chain",
def: "A run of chunks linked in order, each referencing the one before it, so missing, reordered, or edited chunks are detectable. Tamper-evidence for a continuous stream."
},
manifest: {
id: "manifest",
cat: "data-stream",
term: "Manifest",
def: "A signed record describing a chunk or dataset — its hashes, storage location, and encryption details — without the data itself. Buyers verify the manifest before trusting or buying."
},
dataset: {
id: "dataset",
cat: "data-stream",
term: "Dataset",
def: "A group of chunks for one topic and time range, packaged for sale with a single fingerprint (a Merkle root) that covers every chunk in it."
},
merkleRoot: {
id: "merkleRoot",
cat: "data-stream",
term: "Merkle root",
def: "One short hash that stands in for a whole set of items, letting you later prove a specific chunk belongs to a dataset without revealing the rest."
},
envelopeEncryption: {
id: "envelopeEncryption",
cat: "data-stream",
term: "Envelope encryption / key wrapping",
def: "Encrypt the data once with a random key, then lock that key separately for each authorized reader. Granting a buyer access re-locks the key to their public key — the data itself is never re-encrypted."
},
accessGrant: {
id: "accessGrant",
cat: "data-stream",
term: "Access grant",
def: "What a buyer receives after paying: the chunk keys they bought, each locked to their public key. They unlock with their private key and decrypt only those chunks."
},
contextProvider: {
id: "contextProvider",
cat: "data-stream",
term: "Context Provider",
def: "A third party that buys machine data, normalizes it into datasets, and serves or resells it (for example, for AI training). The buyer side of Stream, such as DataHive."
},
computeProvider: {
id: "computeProvider",
cat: "monetize",
term: "Compute provider",
def: "A machine that rents out its processing power to a compute network. Instead of sitting idle, the machine runs other people's workloads and earns for it."
},
provisioningManifest: {
id: "provisioningManifest",
cat: "monetize",
term: "Provisioning manifest",
def: "A published, step-by-step install plan that turns a machine into a compute provider: the checks to run first, the commands to execute, and the probes that prove it worked. The machine pulls it on demand and runs it locally."
},
heartbeat: {
id: "heartbeat",
cat: "monetize",
term: "Heartbeat",
def: "A short signed 'I'm here' message a machine sends out at a regular interval. As long as heartbeats keep arriving, the machine counts as online; if they stop, it's marked offline automatically."
},
aggregator: {
id: "aggregator",
cat: "monetize",
term: "Aggregator",
def: "A network that pools capacity from many machines and sells it on, such as a decentralized compute marketplace. Machines connect to an aggregator, which then dispatches work to them."
},
machineWallet: {
id: "machineWallet",
cat: "monetize",
term: "Machine wallet",
def: "The wallet that belongs to the machine itself, separate from its owner's or operator's wallet. Earnings from the machine's work land here by default."
},
walrus: {
id: "walrus",
cat: "chain-infra",
term: "Walrus",
def: "A decentralized storage network where encrypted data chunks can be parked, referenced by walrus:// links. The data stays off the blockchain; only its reference and fingerprint are tracked on-chain."
},
solana: {
id: "solana",
cat: "cross-chain",
term: "Solana",
def: "A high-throughput blockchain. peaqOS wallets can hold a Solana account and sign Solana transactions, and machine-economy payments can settle there."
}
};
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 went live on peaq mainnet on 2026-09-01 and replaces the fixed 1 PEAQ bond of the earlier `IdentityRegistry` model. The paper is at [peaq.xyz/economics-2-0](https://www.peaq.xyz/economics-2-0); this page documents what the deployed contracts do.
## What is live
| Piece | State on 2026-09-04 | Where |
| :----------------------------------------------------------------- | :---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | :---------------------------------------------------------------------- |
| 13 Economics 2.0 contracts | Deployed on peaq mainnet 2026-09-01 (block 11,446,386); two implementations upgraded 2026-09-03, five more on 2026-09-04 at 10:51 UTC (MachineRegistry, MachineStateAndSync, MachineSubscription, SubscriptionTokenProvisionPool, TrustValidatorStaking). Addresses unchanged | [Contracts](/peaqos/concepts/contracts#economics-2-0-peaq-mainnet) |
| Price oracle | First PEAQ/USD stamp 2026-09-03 11:20 UTC; one peaq-run trust validator node commits daily | [Trust validators](#trust-validators) |
| Machine activation | Live through `peaq-os-sdk` 0.6.0+, `@peaqos/peaq-os-sdk` 0.6.0+, `peaq-os-cli` 0.0.8+ | [Activate](/peaqos/functions/activate) |
| Machine management (suspend, resume, renew, transfer, DID updates) | Live in the same versions | [CLI: machine](/peaqos/cli#peaqos-machine) |
| USDT settlement of the bond | Live (`--payment usdt`) | [Activate](/peaqos/functions/activate) |
| Legacy machine mirroring | Operated by peaq for partner fleets; first batches mirrored 2026-09-04 | [Legacy machines](#legacy-machines) |
| Agung testnet deployment | Live (`agung-2026-08-28`), same contract surface | [Contracts](/peaqos/concepts/contracts#economics-2-0-agung-testnet) |
| 2.0 MCR API (ratings and monetization for 2.0 machines) | Rolling out. The SDKs point at it, the service is not serving yet | [API reference](/peaqos/api-reference/overview#tokenomics-2-0-machines) |
| Cross-chain machine relocation | Disabled on chain (`InfoDesk.isBridgingEnabled()` is false); SDKs expose status reads only | [Omni-chain](/peaqos/concepts/omni-chain) |
| Trust validator staking (permissionless) | Contract live, no validators staked; not exposed in SDKs or CLI | [Trust validators](#trust-validators) |
| Block reward split (treasury 70 / staking 30) | Runtime upgrade (spec 113) merged, not enacted on mainnet | [Tokenomics](/peaqchain/learn/tokenomics#economics-2-0) |
## 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:
```text theme={"theme":{"light":"github-light-default","dark":"github-dark"}}
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` on 2026-09-04 | Bond quoted on mainnet on 2026-09-04 at 20:20 UTC |
| :---- | :---- | :-------------------------------------------------------------- | :------------------------------------------------ |
| Entry | `0` | \$0.02 | 0.803 PEAQ |
| Basic | `1` | \$0.04 | 1.606 PEAQ |
| Pro | `2` | \$0.06 | 2.408 PEAQ |
Tier prices are protocol parameters set by governance (`InfoDesk.setTierPriceUsd`); they have not changed since the contracts were deployed on 2026-09-01. The economics paper lists indicative tier pricing that differs from the values configured on chain today; when governance changes them, the quote changes with them. Always preview before you spend: `peaqos activate ... --dry-run`, `previewMachineActivation`, or `preview_machine_activation`. The PEAQ figure moves with the oracle price every day.
Tiers also carry points that weight bonding rewards per operator. Higher tiers earn more points per machine.
### Paying in USDT
`--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 read from `InfoDesk` on peaq mainnet on 2026-09-04:
| 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 |
```text theme={"theme":{"light":"github-light-default","dark":"github-dark"}}
Active ──period ends──► Grace (14 d) ──► Runoff (14 d, linear decay) ──► Terminated
▲ │ │
└──────── renew ─────────┴────────────────────┘
```
* **Renew** at any point in Active, Grace, or Runoff. Renewal uses the stored tier and extends from the stored period end, not from now. It cures Grace or Runoff immediately.
* **Runoff** moves the decayed part of the bond half to the burn address and half to the treasury, one step per daily settlement. As of 2026-09-04 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% burn and 50% treasury.
* **Suspend / resume** is a voluntary pause by the owner or controller. It does not change the subscription.
## Credits, not payouts
Economics 2.0 never pays 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 and committed credits) 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
```text theme={"theme":{"light":"github-light-default","dark":"github-dark"}}
machineId = uint256(keccak256(abi.encode(machineType, credentialSubject)))
did = did:peaq:
```
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`: a legacy machine that migrates gets a new 2.0 ID. See [peaqID](/peaqos/concepts/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](/peaqos/guides/proxy-operator-fleet).
## 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](/peaqchain/build/advanced-operations/node-operations/becoming-a-validator/introduction). |
| Trust validator node | An allowlisted account (`InfoDesk.isTrustValidator`) that commits currency prices to `PriceOracle` daily and runs the settlement functions (`settleLifecycle`, `settleEpoch`, `settleRevenueWindow`) | One node, run by peaq. First price committed 2026-09-03 11:20 UTC. |
| Trust validator staking | Permissionless staking and delegation in `TrustValidatorStaking` | Contract live on mainnet, no validators staked as of 2026-09-04. 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 on 2026-09-04, so no coordination fee is collected today. 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 and the 1.0 MCR API. `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. A reissue step that hands the permanent 2.0 ID to the machine's owner exists in the contract code. Both steps are operated by peaq for partner fleets and are not exposed in the SDKs or the CLI. The first mirrored batches landed on mainnet on 2026-09-04.
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.isBridgingEnabled()` returns 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](/peaqos/concepts/omni-chain).
## Related
* [Activate](/peaqos/functions/activate): the one-transaction onboarding
* [Smart contracts](/peaqos/concepts/contracts): addresses on peaq mainnet and agung
* [Tokenomics](/peaqchain/learn/tokenomics#economics-2-0): supply, inflation, and the pending block reward split
* [CLI: machine](/peaqos/cli#peaqos-machine): lifecycle, subscription, ownership, and DID commands