Introducing The Value Loop Toolkit for peaq Builders

We’re releasing the Value Loop Toolkit, a new on-chain primitive for projects building on peaq.

The toolkit enables projects to connect on-chain revenues, automated market interactions, and incentive distribution into a single, composable flow.

This release is currently in beta and should be tested thoroughly by each project before being used in production. It is designed to help projects move beyond emissions-based rewards toward revenue-backed, programmable incentive systems.

The Value Loop Toolkit is a reusable product composed of:

A smart contract, including multi-token vesting logic
An accompanying JavaScript script that orchestrates execution and integration

Together, they allow projects to route real economic activity on-chain and reuse that value programmatically to reward users while creating structured token demand.

Rather than being a single-purpose contract, the toolkit provides a flexible pattern that projects can adapt to their own revenue models, liquidity setups, and incentive structures.

How It Works

At a high level, the Value Loop Toolkit connects four core components into a single flow:

On-chain revenue: Projects collect real user or customer payments on-chain, such as payments for data, services, or protocol usage.‍
DEX and liquidity pool integration: Revenues can be connected to a liquidity pool that the project configures or operates, enabling automated market interactions.‍
Stable-value rewards for users: Users can be rewarded in stable-value units (for example, USDC), providing predictable and user-friendly incentives.‍
Automatic token conversion and vesting: In the background, reward value is swapped into the project’s native token and routed into a multi-token vesting contract, where tokens are locked and vested over a configurable period.

This creates a continuous, programmatic value loop:

Revenue → Rewards → Token Buy Pressure → Vesting → Long-Term Alignment

From stable Rewards to Full Value Loops

Several projects in the peaq ecosystem are already live and paying users in USDC/USDT today. This toolkit builds directly on top of those existing setups.

As projects integrate the Value Loop Toolkit:

Existing USDC reward flows can remain unchanged from the user’s perception
The smart contracts and scripts automatically leverage those flows
Reward value is converted into structured token demand behind the scenes

This allows projects to extend their current reward systems into full on-chain value loops without introducing unnecessary complexity for users.

Why This Matters for Builders

Traditional token reward systems often rely on direct token emissions, which can introduce constant sell pressure and misaligned incentives.

The Value Loop Toolkit offers an alternative:

Rewards remain stable and predictable for users
Token demand is created programmatically through real economic activity
Vesting reduces immediate sell pressure
Incentives are backed by protocol revenue rather than inflation
Builders can route rewards through liquidity pools linked to continuous buy pressure, allowing value to be recycled on-chain instead of relying on ad hoc token sales

For example, a project distributing $100,000 per month in USDC rewards can instead generate $100,000 in structured token buy pressure. That demand originates from users themselves—turning participants into buyers—while rewards are still paid in stable value.

A Modular, Reusable Product

The Value Loop Toolkit is intentionally modular. Projects can:

Configure vesting schedules, lock-up periods, and per-user or per-epoch reward caps with built-in safety limits
Adjust reward logic, execution timing
Integrate with multiple liquidity pools across different DEXes, supporting configurable routers and swap paths
Reuse and adapt the JavaScript script with minimal changes

This makes the toolkit suitable for a wide range of peaq-based applications.

Beta Release Notice

The Value Loop Toolkit is released in beta. Projects are strongly encouraged to test the contracts and scripts in controlled environments before deploying them in production systems.

Feedback from early adopters will help shape future iterations and improvements.

Get Started in 5 Steps

Review the toolkit documentation: Familiarize yourself with the smart contract architecture, vesting logic, and JavaScript execution flow.‍
Deploy and test in a development environment: Deploy the contracts on a test network and validate reward flows, swaps, and vesting behavior.‍
Configure your liquidity pool: Set up or connect the desired DEX pool that will be used for automated token swaps, confirm liquidity depth, and define swap routes/slippage limits.‍
Integrate the JavaScript script: Customize and run the script to orchestrate revenue routing, swaps, and reward distribution.‍
Gradually move toward production: Start with small volumes, enable emergency controls (pause/caps) and set up monitoring before scaling.