Peaq Tokenomics (PEAQ) and Its Utility: The Complete Guide

Bittime - Peaq (PEAQ) Tokenomics and its utility, a complete guide. Peaq (PEAQ) is an innovative blockchain platform focused on developing a Web3-based Decentralized Physical Infrastructure Network (DePIN).

With its token launch scheduled for November 12, 2024, Peaq aims to widely distribute tokens to support network activation and ongoing utility.

These tokens play an important role in maintaining network operations and providing economic value within the Peaq ecosystem.

Peaq Utility Token (PEAQ)

The PEAQ token has various utilities that make it a vital element in the Peaq ecosystem:

1. Payment of Transaction Fees

All transactions on the Peaq network are subject to fees that are paid in PEAQ tokens.

The amount of this fee is determined based on the size and complexity of the transaction, similar to the concept of gas fees on Ethereum.

In the DePIN ecosystem, interconnected devices such as machines, vehicles and sensors will generate billions of transactions, making transaction fees a major source of revenue.

2. Network Operations and Block Validation

Peaq relies on Validators and Delegators to produce blocks and maintain network integrity:

- Validators

In charge of producing blocks by staking PEAQ tokens. Validators who break the rules will lose their staked tokens.

- Delegators

Allocate their tokens to selected Validators to support network operations. Delegators receive rewards based on the performance of their chosen Validators.

3. Governance Participation

PEAQ token holders have voting rights in the governance of the network. They can vote on strategic decisions such as changes to the network's inflation rate or the development of new features.

The system is designed to ensure the community has a direct influence on the future direction of the ecosystem.

4. Device Trust System

To ensure the reliability of devices operating on the network, device owners must stake PEAQ tokens.

This provides assurance that only trusted devices can participate, ensuring the security of data and services on the network.

Also read Peaq Airdrop Listing Today

PEAQ Tokenomics: Allocation and Inflation

Total Supply:

4,200,000,000 PEAQ tokens at the genesis stage.

Inflation Model:

- The initial inflation rate is set at 3.5%, which will decrease annually by 10% until it stabilizes at 1%.

- This model aims to incentivize early adopters while maintaining the stability of the token economy.

Token Allocation at the Genesis Stage

1. Funding (34% - 1.428 billion tokens)

Supports initial network development through multiple funding stages, including pre-seed, seed, and private rounds.

2. Community (21% - 882 million tokens)

For community activities such as early adoption campaigns and distribution through incentive programs.

3. Core Team and Contributors (20% - 840 million tokens)

To reward the development team and key contributors who support the development of the network.

4. Network Security (5% - 210 million tokens)

For security audits and maintaining network stability.

5. Ecosystem (20% - 840 million tokens)

Supporting the growth of the DePIN ecosystem by incentivizing projects that build on top of Peaq.

Distribution of Inflation and Transaction Fees

- Validators and Delegators: 40%

- Security Treasury: 10%

- General Treasury: 25%

- DePIN Treasury: 20%

- Machine Subsidization Treasury: 5%

Also read How Teneo Protocol and Peaq Revolutionize the Future?

PEAQ Advantages and Benefits

1. Inclusive DePIN Ecosystem

With a focus on decentralized physical devices, Peaq supports the adoption of blockchain technology at scale through the integration of devices such as robots and vehicles.

2. Robust Security System

With the support of Validators and incentive-based staking, the Peaq network offers stability and resilience against threats.

3. Active Community Participation

Community-based governance allows users to have a voice in strategic decision-making.

4. Supports Network Growth

The disinflationary model encourages early growth while preserving token value in the long run.

Conclusion

Peaq (PEAQ) brings a new approach to decentralized physical infrastructure management through blockchain technology.

With strategic tokenomics and a wide range of functional utilities, PEAQ offers exciting opportunities for investors and users looking to engage in the rapidly growing blockchain ecosystem.

With its token launch scheduled for November 12, 2024, Peaq is poised to become one of the major players in the DePIN world.

Reference:

*https://docs.peaq.network/docs/learn/tokenomics/#allocation-at-genesis*

*https://x.com/0xFastLife/status/1855624264000708852*

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