Peaq

Executive Summary

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Peaq is a Layer-1 blockchain designed for Decentralized Physical Infrastructure Networks (DePIN) and Machine Real-World Assets (RWAs). As of May 2025, Peaq supports over 60 DePIN projects across more than 20 industries. It powers the emerging “Economy of Things” by enabling tokenized infrastructure in mobility, energy, connectivity, and other sectors.

Peaq is showing strong growth in the Machine Economy, including a 789.4% quarter-on-quarter increase in new machine addresses in Q1 2025. It will serve as a core infrastructure layer for XMAQUINA’s Machine RWA strategy, providing identity, automation, and transaction rails for real-world robotic systems.
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Overview
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Founded in 2017 and built on Substrate, Peaq is a Layer-1 blockchain optimized for real-world autonomous systems. It supports Decentralized Physical Infrastructure Networks (DePIN) and Machine Real-World Assets (RWAs), allowing individuals and organizations to tokenize and monetize physical assets such as vehicles, sensors, and energy networks.

Built on Substrate and compatible with Polkadot, peaq includes an Ethereum Virtual Machine (EVM) for seamless interoperability with the EVM ecosystems. Launched in November 2024, the platform transforms how machines, devices, and infrastructure interact within a decentralized economy.

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Peaq’s ecosystem includes over 60 DePIN projects across more than 20 industries, integrating over 6 million devices, such as tokenized vehicles for car-sharing and a global network of noise pollution sensors through its partnership with Silencio. A notable recent integration is OVR, a geospatial DePIN platform with over 1.3 million users and 125,000+ high-quality location maps, enhancing peaq’s geospatial capabilities.

Peaq continues to drive ecosystem expansion through initiatives like Machine Economy Days in Abu Dhabi and Dubai, where DePIN founders engage with government officials, enterprise leaders, and academic institutions to accelerate real-world adoption.

Peaq’s modular DePIN Functions, such as peaq ID (self-sovereign machine identities), peaq pay (peer-to-peer machine payments), and integrations with Aragon OSx and Snapshot, have also supported the deployment and governance of the XMAQUINA DAO.

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The $PEAQ token has a fixed supply of 4.2 billion and is used for transactions, staking, governance, and smart contract execution. In Q1 2025, Peaq launched the Get Real campaign, allocating 210 million $PEAQ tokens to incentivize user participation and ecosystem activity. This campaign highlights Peaq’s focus on driving adoption through real-world engagement.

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Strategic Rationale

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The XMAQUINA DAO views the DePIN sector as a foundational layer for decentralizing global infrastructure. By bridging physical and digital systems, DePIN networks enable individuals and organizations to own, operate, and monetize real-world assets. These networks are particularly well-suited for collecting real-world data, making them instrumental in training AI models for humanoid robots and advancing decentralized physical AI (DePAI).

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Peaq’s focus on Machine Real-World Assets (RWAs) positions it to capture meaningful value across both DePIN and DePAI verticals. With over 6 million devices integrated across 60+ DePIN projects in more than 20 industries, peaq’s ecosystem demonstrates robust adoption. 

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Notable examples include Silencio’s global noise pollution mapping with 360,000+ users and OVR’s geospatial platform with 1.3 million users and 125,000+ high-quality location maps, showcasing peaq’s scalability and real-world utility. Peaq’s collaboration with Bosch on the moveID project (involving Airbus and Continental) and reported ties with Mastercard highlight its enterprise-grade potential

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Peaq competes with other DePIN blockchains such as Helium and IoTeX, but differentiates through multi-chain compatibility (Substrate with both EVM and WASM support) and high throughput. While private testnet results have reached 67,000 transactions per second, Peaq’s architecture is reportedly designed to scale toward 500,000 TPS.

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If Peaq captures even a small portion of the DePIN market, which is projected to grow within the $1.5 trillion IoT and Physical AI sector by 2030, its native token could offer significant upside for the DAO. However, exposure comes with risks, including platform competition, token volatility, and infrastructure execution challenges.

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Tokenomics

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Potential Liquidation Events

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The XMAQUINA DAO recognizes $PEAQ as both an operational asset and a component of its strategic positioning within the DePIN and DePAI ecosystems. To ensure continued functionality, the DAO maintains a reserve of $PEAQ to support governance, cover transaction fees, and provide liquidity for a DEUS/PEAQ trading pair on Peaq’s native DEX.

However, under favorable market conditions such as significant $PEAQ price appreciation driven by ecosystem growth, successful mainnet upgrades, or broader DePIN market rallies, the DAO should consider partial divestment of its $PEAQ holdings, subject to on-chain governance approval.

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Such liquidations would be executed strategically to capture value during periods of high liquidity and strong market performance, while minimizing disruption. Proceeds from these divestments would be reallocated to expand the DAO’s equity exposure in humanoid robotics companies.

This approach balances the DAO’s long-term alignment with Peaq’s ecosystem and infrastructure with opportunistic capital reallocation. It is designed to support sustained treasury growth, risk diversification, and deeper influence across the machine economy.

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Key Risks & Considerations

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While the DePIN and DePAI sector offers transformative potential, material risks could impact peaq’s growth:

• Execution Risk: Scaling a Layer-1 blockchain to support billions of devices requires consistent technical performance. Peaq’s target of 500,000 transactions per second depends on successful mainnet upgrades and follow-through on its private testnet performance of 67,000 TPS (Q1 2025). Network security, device interoperability across sectors like mobility, energy, and geospatial data, and integration with decentralized physical AI (DePAI) are all critical and complex challenges.
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• Competition: Peaq competes with other DePIN-focused networks such as Helium and IoTeX, as well as general-purpose chains moving into the DePIN space. While its multi-chain interoperability, current throughput of 10,000 TPS, and focus on Machine RWAs and DePAI are differentiators, sustained ecosystem growth and strategic integrations (e.g., with OVR and Silencio) will be essential to maintaining its edge. The DePIN market, projected to grow within the $1.5 trillion IoT and Physical AI sectors by 2030, is large but increasingly competitive.
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• Regulatory & Adoption Hurdles: Regulatory uncertainty around tokenized assets and DePIN infrastructure could hinder adoption, particularly in jurisdictions like Europe and the United States, where regulatory clarity remains a moving target. Additional compliance with evolving global standards for decentralized networks and data privacy (e.g., GDPR in Europe) may increase operational costs.
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• Market Volatility: With a market cap of approximately $110.41 million (at $0.1261 per token as of June 2025), $PEAQ remains vulnerable to broad crypto market fluctuations. Price movements may be driven by external sentiment, macroeconomic shifts, or speculative trading rather than project fundamentals, which could impact the DAO’s short-term portfolio valuation.
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Despite these risks, Peaq’s position at the intersection of DePIN and DePAI, its network-level integrations, and the 789.4% quarter-on-quarter growth in machine addresses in Q1 2025 reflect strong momentum. Projects like Silencio (360,000+ users) and OVR (1.3 million users) further reinforce its relevance to real-world machine coordination, making it a strategically aligned asset for the XMAQUINA DAO.