In a landmark move, peaq has unveiled the world’s first Machine Economy Free Zone (MEFZ) in the United Arab Emirates.

Co-founded by Maltese blockchain entrepreneur Max Thake, peaq bills itself as a global, decentralised network built to power applications in industries such as mobility, energy, and telecommunications.

The new Machine Economy Free Zone, in collaboration with Pulsar Group, is described as a human-centric sandbox for the Machine Economy, and “marks a pivotal shift toward a future where humans and machines co-create value in a decentralised framework.”

Mr Thake celebrated the launch, calling it a revolutionary step toward a more inclusive economic model.

“This is about shaping a future where technology serves everyone – not just a privileged few,” he said.

Max Thake

The Maltese entrepreneur has been vocal about the need for economic structures to transition “from a zero-sum game to a positive-sum, regenerative economy” that would “nullify the threat of mass job automation” and “enable global access to the Age of Abundance.”

Last year, upon the live launch of the network, he said it represents “nothing short of a global infrastructure revolution” by “empowering communities to build, own, and earn from their own value-generating apps and networks.”

What is the Machine Economy Free Zone?

The MEFZ is a first-of-its-kind regulatory and innovation sandbox designed to accelerate the real-world deployment of the Machine Economy – a system where AI-driven, Web3-powered machines autonomously generate value, earn income, and interact directly with people and businesses.

Put simply, the Machine Economy is one where the value created by machines providing goods and services is shared with the communities they serve.

In a 2023 interview with WhosWho.mt, Mr Thake had broken down what this could look like using the real-life example of ELOOP, a car-sharing company in Vienna that had integrated over 100 of its Teslas into the peaq ecosystem.

“To tokenise something is to create a digital token representing that thing,” he explained. “This token can be broken into smaller pieces, each of which is unique and has rights associated with it.

“As the Teslas provide car-sharing services – in other words, people rent and drive them via an app – the Tesla generates revenue.

“Now instead of the €20 made from a car-sharing journey going to one company, as is traditionally the case, the €20 is split by the owners of the tokens. You can apply this to one Tesla, or to a fleet of hundreds and one day thousands of Teslas.”

The MEFZ will serve as a testing ground for similarly new business models, policies, and investments in this emerging sector, prioritising four key areas to kick-start the new economic model.

1. Regulation – Developing compliant frameworks for tokenising autonomous machines and enabling investment.
2. Deployment – Partnering with Emirati stakeholders to create physical and virtual sandboxes for smart city innovations.
3. Investment – Connecting top DePIN (Decentralised Physical Infrastructure Network) projects with institutional investors for rapid scaling.
4. Innovation Hub – Supporting R&D for real-world Web3 applications, from autonomous vehicles to AI-driven infrastructure.

Among the first initiatives to be tested in the MEFZ is Machine Tokenisation, allowing individuals to invest in and co-own real-world machines – from self-driving cars to vertical farms.

The Free Zone will also pilot Universal Basic Ownership (UBO), wherein machine-generated income is distributed directly to communities affected by automation eliminating middlemen and ensuring fair value distribution.

Why this matters

The rise of AI and automation is inevitable, but who benefits remains undecided. Without intervention, the Machine Economy risks following the path of Big Tech, where a few corporations monopolise profits while workers are displaced.

The MEFZ offers an alternative – a decentralised, community-driven model where ownership and value are shared.

Till Wendler, Co-Founder of peaq, stated: “The Machine Economy is no longer a far-fetched dream – it’s a reality. The UAE, as one of the most innovative nations, is the perfect place to pilot this vision and set a global example.”