March 19, 2024

ELOOP is building a Machine RWA tokenization platform on peaq

What is happening?

ELOOP is building a platform for tokenizing machine real-world assets (Machine RWAs) on peaq, which will enable businesses and communities to tokenize the value generated by their real-world machines.

Why is it important?

The platform offers DePINs and traditional businesses a way around their capital expenditure pains and unlocks a whole new category of RWA assets, machines generating yield through real-world services, to investors.

What does it mean for the community?

Besides bringing more machines and network activity on peaq, the platform will also enable everyday Web3 aficionados to invest in a wide array of Machine RWAs, from tokenized wind turbines to WiFi hotspots and shared e-scooters — through Web3.

ELOOP taps peaq to open new horizons for DePINs

Would you join a decentralized physical infrastructure network (DePIN) of self-driving cargo trucks? Just imagine: You get to earn rewards on getting goods from point A to point B, a service that has fueled commerce since the dawn of time. Sounds good? Awesome! Just install this dApp on your self-driving truck and… You don’t have one? Okay, how about setting up a huge, industrial-grade wind turbine in your backyard?..

You can probably get where we are going with this. As promising as the DePIN model is, the upfront cost of value-generating hardware is sometimes too high for it to make sense. You won’t buy a Tesla just to join a car-sharing DePIN, right? In traditional business terms, this is known as capital expenditure, or CAPEX, or the resources you spend on assets generating long-term value. Traditional infrastructure projects usually come with a hefty CAPEX as they have to buy and deploy a lot of pricey hardware. DePINs have a CAPEX issue of their own, and so far, it has limited the applicability of this promising model.

Now, here’s the thing: ELOOP has actually already pulled off the Tesla trick, tokenizing some of the vehicles in its car-sharing fleet in Vienna. The funds it raised through the token sale — more than €1.6 million, with barely any marketing spend — went toward expanding this fleet, enabling it to scale up its operation. These Teslas now run on peaq, and yes, we still aren’t over it. 

This project has proven the viability of the underlying tokenization model — and not just viability, but its success. So ELOOP is now working to make this model available to anyone from a Web2 company seeking new revenue flows to communities in need of funds for setting up costly infrastructure… You know, like turbines, auto-trucks, delivery robots (or space shuttles), you name it. 

You guessed it: ELOOP is building a tokenization platform on peaq that will enable companies and communities to represent a stake in the value generated by their machines as on-chain tokens. These tokens will generate rewards for their holders based on the real-world value the underlying machines — wind turbines, WiFi hotspots, shared e-scooters, and more — create. By powering machine real-world asset (RWA) tokenization, ELOOP solves the CAPEX plights for both DePINs and traditional businesses. 

And it’s not just about DePINs! ELOOP’s platform will also set up a Web3 bridge for established businesses looking to raise funds to purchase more value-generating machines or establish new revenue streams. The global Web3 community also stands to benefit, as the platform will grant it access to an entire new class of RWAs. Through ELOOP’s platform, people will be able to directly contribute to and earn from the deployment of infrastructure that up until this point was limited to large corporations and governments.

 

A billions-worth opportunity 

RWAs are already one of the most prominent Web3 sectors, their combined TVL climbing over $4 billion. As a pioneer in Machine RWAs, ELOOP is spearheading the push into this exciting RWA subcategory. ELOOP will initially test the platform on krest, peaq’s canary network, and then launch it on the peaq mainnet, which will go live this year. A range of both Web2 and Web3 projects are already exploring pilot projects on the platform, including Dabba, a connectivity DePIN working to deliver Web access to the unconnected, as well as a major energy provider company and various players in the shared mobility market.  

The platform will enable companies and communities to convert rights to real-world machines and the value they generate into on-chain tokens. These tokens will make up Machine Pools on peaq that users can contribute liquidity too. Anyone holding the Machine RWA tokens will be entitled to a share of the rewards allocated for token holders based on their share in the Pool. The platform will be compliant with the relevant regulations to ensure global scalability. DePINs and businesses will also have the option to set up Know Your Customer procedures in line with the requirements of a specific jurisdiction. In the first year after launching on peaq, ELOOP aims to hit a goal of $20 million worth of Machine RWA token sales.

The end mission is to enable innovative infrastructure projects to access borderless Web3 liquidity on a fast, cost-efficient, and compliant platform. Initially, ELOOP will focus on tokenizing mobility and energy Machine RWAs, such as solar panels, electric vehicles, and e-scooters, as well as DePINs focused on any industries. In the future, this scale will grow, expanding to include more industries and sectors.

“We’re excited to move beyond the tokenized Teslas and offer this exciting and test-proven model to businesses and communities. Our tokenization platform will enable companies to do more with their assets and help them to access liquidity for projects that will improve their livelihoods. Machine RWA tokenization opens up a new era of fractional ownership and participation in the value generated by machines, and we are happy to be chartering this path forward with peaq.”

— Nico Prugger, CEO and co-founder of ELOOP
“Machine RWA tokenization vastly expands the Web3 reach into the real world. It can power all sorts of ambitious automation projects, from networks of delivery robots to solar panel arrays delivering green energy where it counts most. ELOOP is at the forefront of this movement, and its platform will be a true power multiplier for the peaq ecosystem, pushing the boundaries of what’s possible on peaq, in Web3, and far beyond.”

— Till Wendler, co-founder of peaq 

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