peaq is a Layer-1 blockchain designed to power Decentralized Physical Infrastructure Networks and Machine Real World Assets.
The peaq ecosystem includes over 30 projects and applications with more than 850,000 connected machines, robots, and devices providing services. These projects can be deployed on land, at sea, in the sky, or in space.
peaq offers full EVM compatibility and supports Rust smart contracts. peaq is also bridged to Ethereum via multiple established bridges.
peaq's modular stack offers a suite of ready-to-use DePIN Functions, allowing various applications to leverage them seamlessly.
Background
peaq was founded by three entrepreneurs: Till, Leo, and Max, who were brought together by their shared passion for blockchains and IoT. Till, an entrepreneur from Germany, discovered Ethereum in 2015 and fell down the crypto rabbit hole. Leo, also German, met Max, a Maltese entrepreneur when they worked together at a Software company in Berlin. The group came together in 2017, driven by the vision of leveraging blockchains to address global challenges.
Initially, they brainstormed ways to integrate Web3 and IoT effectively but soon realized that the existing infrastructure couldn't support IoT as they envisioned.
They studied the implications of incorporating blockchain into traditional systems and collaborated with major companies such as Audi, NTT, DMG Mori, and Gucci to develop enterprise IoT applications and understand the technology's impact on the current landscape. This experience led them to build a dedicated Layer-1 blockchain to support the distinct applications they aimed to enable.
By 2021, peaq was established as their solution for building real-world applications, now known as Decentralized Physical Infrastructure Networks (DePIN). In March 2024, peaq announced it had raised $15 million in funding from leading investors that include Animoca Brands, Borderless Capital, Generative Ventures, Cypher Capital, CMCC, Fundamental Labs, HV Capital, Hashkey Capital, GSR Investments, MoonRock Capital, among others. In May 2024, peaq secured $20 million in a CoinList launch.
Block production on peaq relies on the collaboration between collators and delegators to ensure that transactions are converted into blocks quickly, efficiently, and without censorship.
Collators are responsible for creating blocks and maintaining the network's state. Their role is similar to miners in a PoW network, but they do not enhance the network's security. Instead, they generate proofs of the current state of the network based on the Polkadot Relay Chain and run a complete node on both the relay chain and parachain for their respective functions.
Delegators ensure that the blocks produced by collators are finalized on the Relay Chain. They also filter collators to ensure they are honest and reliable by staking their tokens to support their trusted collators. Due to the security architecture of the validation process, dishonest collators cannot finalize invalid blocks. While they could potentially slow down or temporarily halt the network, as long as there is at least one honest collator, the parachain remains secure and operational.
Collators and delegators collectively receive 30% of the total network rewards, including newly minted blocks and transaction fees paid by network users.
Modular DePIN Functions
One of peaq’s unique value propositions, specifically targeted at DePINs, includes the implementation of various Modular DePIN Functions designed to cater to this sector's needs. These can be thought of as a decentralized backend for DePINs.
peaq ID
Provides self-sovereign machine identities, allowing hardware devices such as machines, robots, and vehicles to identify and connect with each other, with people, and with their surroundings. This is essential in a world where decentralized identities interact and cooperate directly. peaq ID consists of two main components:
Decentralized Identifiers (DIDs): Provides devices with unique identifiers, allowing machines to connect seamlessly. This framework was developed in collaboration with the Gaia-X and MoveID consortium, comprising leading automotive companies and experts and funded by the EU.
Verifiable Credentials (VCs): Authenticates attributes unique to a machine, such as certificates, roles, rights, or capabilities. These credentials are issued and revoked by Credential Issuers (CIs), who act as trusted parties within the peaq ecosystem.
peaq access
peaq access allows developers to configure machines and devices with specific access based on their role within the ecosystem and a specific application. Role-Based Access Control (RBAC) involves granting machines access based on verifying their role to determine their access level within the DePIN.
Built on the peaq ID feature, as establishing the level of access requires machine identification.
Using peaq Access, developers can utilize pre-built logic when developing applications, eliminating the need to create an RBAC system from scratch.
peaq pay
peaq pay facilitates payments between machines and between machines and users. To ensure proof of funds from a specific wallet, peaq verifies adequate funds by:
Creating a multi-sig wallet where the user deposits enough funds to cover the service costs.
Funding the multi-sig wallet using the sender’s current wallet.
Approving refund and spent transactions once charges are finalized.
peaq verify
peaq verify significant data exchanges are fundamental to DePIN, which makes data verification a critical component of any DePIN. It is crucial to ensure that every data point corresponds to a live physical piece of infrastructure broadcasting accurate data. There are three levels of authentication:
Machine Origin Authentication (Tier 1): Verifies data directly from devices using an SDK or documented functions. The system detects devices and signs data with a private key to ensure authenticity before broadcasting it to the network. This method is the most trusted since data originates directly from the devices.
Pattern Matching Validation (Tier 2): Validates data that is not directly from the devices but is related to existing network devices. This is done by comparing data patterns to those of existing devices on the network; similar patterns indicate valid data. This method is less trustworthy than Tier 1.
Oracle-Backed Authentication (Tier 3): Relies on oracles for data verification. The oracle checks the legitimacy of the data, adding an extra layer of security. This method is secure but may have vulnerabilities due to oracle risk.
AI Agents
AI agents can be deployed on peaq due to the integration of Fetch.ai’s autonomous agents as well as Nevermined for autonomous payments and Autonolas to own shares in the autonomous agents economy. Developers can use these microagents to automate tasks and optimize efficiency in the Economy of Things.
Interoperability
A key value proposition of building on peaq is its inherent ability to communicate with various chains and ecosystems. peaq integrates with multi-chain networks to expand the reach and capabilities of its ecosystem. peaq’s interoperability with major Layer-1 blockchains is outlined below:
Polkadot: Any DePIN and application on peaq is natively interoperable with the Polkadot ecosystem through Cross-Chain Messaging (XCM). This protocol allows cross-consensus and sophisticated interactions between Polkadot and its parachains.
Ethereum: peaq is fully EVM-compatible, enabling protocols to leverage the opportunities offered by the Ethereum ecosystem. Any EVM-compatible code can be reused on peaq without modification. peaq is also bridged to Ethereum via multiple established bridges.
Cosmos: peaq can exchange data and create cross-chain identities on Cosmos by leveraging smart agents on Fetch.AI. This interconnectivity is facilitated by a decentralized address book on peaq, linking different standards across networks to enable interoperability.
Binance BNB: peaq’s Multi-Chain Machine IDs are natively compatible with Binance’s BNB Chain, allowing peaq to communicate and exchange data with projects running on the BNB Beacon Chain.
Solana: peaq’s Multi-Chain Machine IDs enable seamless interactions with Solana applications. Projects built on Solana can leverage peaq to enhance their functionality and increase network activity on peaq.
Tokenomics
Token Functionality
peaq’s native token, PEAQ, is not yet available for public purchase on exchanges, but the core team is targeting September for the Token Generation Event (TGE). However, the design architecture for PEAQ’s value accrual, utility, and initial distribution has already been established. PEAQ will serve various purposes within the ecosystem, including:
Ensuring network security and reliable block production by rewarding collators and delegators through staking.
Serving for paying transaction fees.
Granting token holders a claim on future governance decisions.
In the future, peaq anticipates the token to function as a machine reputation proof for physical infrastructure. Machine owners will be able to stake PEAQ on machines and devices to vouch for their quality and reliability within the ecosystem. These tokens will act as supplementary proof of the machine’s reputation alongside its overall performance record. If a machine fails to serve its intended purpose, the stake would be slashed to account for its lack of reliability.
Token Allocations and Vesting
*Note that these distributions are not yet finalized and are subject to change.
The maximum total supply of PEAQ will be 4.2 billion tokens. The proposed initial allocation and vesting schedule of PEAQ is as follows:
Pre-Seed (294 million; 7%): Allocated to early supporters of peaq. These tokens have a 24-month vesting period, a 6-month lock-up, and 5% release after the lock-up.
Seed (210 million; 5%): Allocated to early supporters of peaq. These tokens have a 24-month vesting period, a 6-month lock-up, and 5% release after the lock-up.
Private Sale (546 million; 13%): Private investors receive the largest portion to raise liquidity and support the growth of teams and ecosystem projects. These tokens have a 6-month lock-up, an 18-month vesting period, and a 7.5% release after the lock-up.
Pre-Launch Private Sale (378 million; 9%): Private investors receive the largest portion to raise liquidity and support the growth of teams and ecosystem projects. These tokens have a 6-month lock-up, an 18-month vesting period, and a 7.5% release after the lock-up.
Launchpad/Community Sales (252 million; 6%): Intended to provide early access to the network and increase liquidity to incentivize growth. These tokens have a 6-month vesting period and no lock-up.
EoT Labs (357 million; 8.5%): Allocated to fund the organization that developed peaq into an open-source network. These tokens have a 36-month vesting period and a 9-month lock-up.
Core Team (483 million; 11.5%): Incentivizes the team and core developers. These tokens have a 36-month vesting period and a 9-month lock-up.
Network Security (210 million; 5%): Allocated for audits and security measures, ensuring ecosystem resilience. These tokens have a 54-month vesting period and no lock-up.
Ecosystem & Treasury (840 million; 20%): Supports ecosystem growth and encourages developer participation through grants. These tokens have a 48-month vesting period and no lock-up.
Community Initiatives (630 million; 15%): Dedicated to growth campaigns and community-building initiatives. These tokens have a 36-month vesting period and no lock-up.
Token Economic Model
PEAQ’s supply schedule is designed to support long-term growth and meet the evolving demands of the ecosystem as it gains traction. PEAQ will operate under a disinflationary economic model. The initial inflation rate is set at 3.5% to provide sufficient incentives for early adopters. This rate will decrease by 10% each year until it stabilizes at 1%. The goal is to achieve a balance where the inflation rate matches the growth of network transactions.
Note - this model is subject to change as on-chain governance allows token holders to vote on proposals related to PEAQ's economic framework.
Canary Network - krest
peaq is still in its infancy, as it has not yet fully launched some critical functionalities, particularly its native token and the associated incentive mechanisms. In preparation for the mainnet, peaq launched KREST, the native token of its sister network on Kusama working as a production-grade environment for testing DePINs and protocols that simulates how PEAQ will operate. The team has announced that KREST holders will be eligible to receive a PEAQ airdrop once it goes live, as a reward for being early adopters of the ecosystem.
Although PEAQ has not yet launched, this experimental testing has already onboarded over 30 different DePIN projects committed to building on peaq, many of which have already tested on the krest network.
Network Usage
As of June 2024, peaq’s ecosystem includes over 850,000 machines, vehicles, robots, and other devices, manages $25M+ in tokenized Real World Assets (RWA), and hosts more than 30 unique DePIN projects. peaq’s community includes over 150,000 members, known as peaqonauts.
peaq’s key performance indicators are designed to grow alongside its increasing usage and adoption. Its flexible and adaptive architecture meets the evolving needs of developers and users. Key metrics that make peaq attractive for DePIN projects include:
Decentralization: peaq inherits the security of the Polkadot Relay Chain, which has a reported Nakamoto Coefficient of 90. peaq nodes can be configured for $3,000 annually, enabling broad network participation in consensus.
Scalability: The network currently handles 10,000 transactions per second, and could scale to 100,000+ TPS by 2025.
Speed and Cost: Transactions cost as little as $0.00025 each, making the network fast and affordable.
Ecosystem
Various projects are already leveraging peaq’s tech stack to build their DePINs. Most DePINs design their incentives based on a general framework known as the DePIN Flywheel. This model outlines the logical paradigm that enables DePINs to scale and grow. It is a virtuous cycle where each network participant is driven by unique token incentives to participate, ultimately bootstrapping the deployment of more devices on the network.
Some notable projects powered by peaq include:
Silencio: A DePIN project with over 300,000+ smartphones serving as noise pollution sensors. Through their mobile app, available on Google Play and the App Store, anyone with a smartphone can join the network and provide data. Silencio leverages peaq to combat noise pollution by creating a network of interconnected devices that collect noise pollution data to address the associated crisis.
XMAQUINA: An innovative DePIN protocol leveraging peaq to tokenize revenues from value-generating automated robots. Its first live demo, showcased at TOKEN2049, consisted of robots serving humans coffee and ice cream, while allowing them to financially benefit from the work of the automated machines. In the demo, all of the revenues were denominated in KREST and split between the demo’s pool token holders. XMAQUINA’s next step is opening a tokenized robo-cafe in Europe where the community will earn financial rewards from every cup of coffee that is bought. XMAQUINA is already tapping into Teneo’s (previously ELOOP) tokenization system on peaq and is planning to integrate peaq’s modular DePIN functionality to build its own native token, leverage peaqID for identity management, and launch its smart contracts on peaq’s L1.
MapMetrics: Originally building on Solana, MapMetrics is now fully migrating to peaq with the intention of eventually issuing its token on the network. MapMetrics will use peaq’s Multi-Chain IDs to deploy unique functions into their apps, primarily data authentication and a community voting mechanism. MapMetrics functions like a Google Maps-style navigation system governed and shaped by the community. It consists of a network of people contributing to the mapping system's development. Users who share their data are rewarded with MMAP tokens, which are burned by the network based on the value added. The protocol generates revenue through in-app advertising, Web3 APIs, anonymous data set sales, and partnerships. The revenue is shared with the community, with the protocol buying back tokens earned through contributions and distributing earnings among network participants.
Roadmap
peaq has released a proposed outline that details the path forward for the ecosystem as it trends towards the much anticipated mainnet launch. The peaq pre-launch network is live and running but there are still many technical improvements on the map, which include:
Additional nodes, including professional infrastructure providers, trusted enterprises, and community nodes go live on peaq. .
Initial Launch
peaq has secured $20 million in what is considered the largest CoinList token launch in two years in May 2024. The PEAQ token launch was a success, being oversubscribed by the community. These funds will be used to sponsor new community initiatives to drive the adoption of peaq and DePIN as a whole.
Grants and Funding
To incentivize entrepreneurs to build on peaq, the peaq Foundation has established a grants program aimed at providing financial resources and support to grow the peaq ecosystem. These grants are backed by leading investors, including Cypher Capital, Fundamental Labs, GravityX Capital, HashKey Capital, Mulana Capital, and Waterdrip Capital. In the future, PEAQ holders will decide who receives these grants. They have recently launched a modular grants program that is now in development, aiming to provide DePINs with the necessary support that tailors to their specific need, ranging from marketing support to investor intros and networking opportunities.
DePIN Accelerator
In collaboration with Outlier Ventures, peaq is hosting a DePIN Base Camp, a 12-week accelerator program designed to provide DePIN projects with the tools needed for success. The program includes mentorship, advisory sessions, networking opportunities, and up to $200,000 in funding from Borderless Capital, the capital partner of the program.
Enterprise Integrations
peaq has also partnered with enterprises to integrate their blockchain into existing systems. One notable example is their collaboration with Bosch and Fetch.Ai, which has led to the creation of a smart device that combines the strengths of Web3 and AI. The Bosch XDK110 Rapid Prototyping Kit generates real data on external conditions such as weather, humidity, and noise pollution. Equipped with eight different sensors, this product allows users to collect and monetize the data generated by the smart device.
This technology leverages peaq ID functionality, particularly the decentralized identifiers (DIDs), which enable the device not only to store data on peaq but also to interact and share this data with other DePINs. This interaction ultimately leads to monetary rewards for contributing to the ecosystem.
Closing Summary
peaq aims to serve as a people-powered network that supports a people-powered economy. It provides the necessary infrastructure to facilitate the transition from centralized systems with concentrated power to a world where communities and individuals collectively govern and earn through interconnected machines and entities.
Its emphasis on interoperability, scalability, security, and decentralization makes it a suitable candidate for DePIN projects seeking to harness the benefits of autonomous systems through the collaboration of independent entities.
The roadmap outlines a comprehensive vision for the network's future and exciting upcoming features. As the community eagerly awaits the launch of PEAQ, it is noteworthy to highlight the traction the project has already gathered and the wave of innovation expected to take place on peaq.
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