Question 1

What is PEAQ, and what network does it serve?

Accepted Answer

PEAQ is the native utility token of the peaq network. peaq is a Layer 1 for decentralized physical infrastructure networks (DePIN) and the Economy of Things, where machines, vehicles, and devices can exchange data or value through its on-chain applications. PEAQ is not proof of ownership of a device or application; it is the network's native token for paying the cost of on-chain operations and participating in network security. This positioning connects token demand with actual network use: devices or applications require network processing when submitting on-chain transactions or calling functions; the network denominates the fees for those operations in PEAQ, while its staking mechanism enables participants to support network security.

Question 2

How does PEAQ's transaction-fee use work?

Accepted Answer

PEAQ can be used to pay transaction fees on the peaq network. When a user or application initiates an on-chain transaction, the network must process and record that operation; the fee is the token cost paid for that network resource. Therefore, the specific cost varies with the network resources consumed by the transaction and network rules, rather than being determined by the number of tokens held alone. peaq provides foundational tools such as machine identities, access control, and peer-to-peer payments between devices. These tools do not themselves mean that every device interaction incurs the same fee, but PEAQ's fee function is used when the related operation needs to be written to or executed on-chain.

Question 3

What is the purpose of staking PEAQ, and how do rewards work?

Accepted Answer

PEAQ can be staked to help secure the peaq network; the materials also state that stakers can receive rewards. The key point is not that simply locking tokens necessarily generates a fixed return, but that staking is incorporated into the network-security mechanism, with rewards and participation conditions determined by network rules. Staking therefore has two functions: for the network, it uses tokens to support security; for participants, it provides a possibility of receiving rewards under the rules. Actual returns cannot be inferred solely from a promotional annualized rate at a particular time and are also affected by then-current network rules and participation.

Question 4

How should PEAQ's supply and inflation mechanism be understood?

Accepted Answer

PEAQ's supply is not fixed at the genesis amount. Total supply at genesis was 4.2 billion tokens; the network starts with 3.5% annual inflation, after which the then-current inflation rate is reduced by 10% each year until the 1% target is reached. Thus, the genesis supply describes the network's starting point, not a permanently fixed cap. If the nominal inflation rate in year n is used, before the 1% target is reached it can be summarized as 3.5% × 0.9^n. Here, “declining by 10% each year” means the inflation rate decreases to 90% of the prior year's rate, rather than directly falling by 10 percentage points each year; after the target is reached, the model described in the materials targets 1%. Governance may adjust this model in the future, so this parameter should not be treated as an unchanging commitment.

Question 5

How was PEAQ's genesis supply allocated?

Accepted Answer

The 4.2 billion-token genesis supply was allocated at launch among different uses and participant groups, rather than all being assigned to one class of holders at the same time. Investors received 34%, the community 21%, ecosystem and treasury 20%, core contributors 11.5%, EoT Labs 8.5%, and network security 5%. These percentages describe the genesis-allocation basis; they are not equivalent to circulating supply at a particular time and cannot by themselves indicate when each portion becomes tradable. When understanding PEAQ supply, genesis allocations, tokens created through later inflation, and actual circulation status should be distinguished.

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Frequently Asked Questions About peaq (PEAQ)

What is PEAQ, and what network does it serve?

How does PEAQ's transaction-fee use work?

What is the purpose of staking PEAQ, and how do rewards work?

How should PEAQ's supply and inflation mechanism be understood?

How was PEAQ's genesis supply allocated?