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.

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
16 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. Needs peaq-os-sdk 0.8.0, @peaqos/peaq-os-sdk 0.8.0, or peaq-os-cli 0.0.12	Activate
Machine management (suspend, resume, renew, transfer, DID updates)	Live in the same versions	CLI: machine
USDT settlement of the bond	Live (--payment usdt)	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, on the same contract versions as peaq mainnet	Contracts
2.0 MCR API (ratings and monetization for 2.0 machines)	Live at mcr-20.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: reserve and bond on peaq, create the machine on Solana, manage it and submit its events from the same SDK methods. Tiers Basic and Pro	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
Block reward split (treasury 70 / staking 30)	Live	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

--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 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. 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

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 and runs the settlement functions (settleLifecycle, settleEpoch, settleRevenueWindow)	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. 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. 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 points at the Solana adapter (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 not how a machine gets to Solana today. A machine is created on Solana: the operator reserves its ID and bonds the tier on peaq, peaq mirrors reservation and tier to Solana, and the Solana owner mints the machine there. Bond, points, vouchers and the subscription record stay on peaq; the identity, DID document and NFT are Solana accounts. See Onboard a machine on Solana.

Related

• 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