PegNet

What PegNet does

PegNet is a decentralized stablecoin network launched in 2019 and headquartered in Cham, Switzerland, operating as an open-source project on the Factom Protocol and structured as a state channel on Ethereum. The protocol enables frictionless conversion between 32+ pegged assets — 14 major fiat currencies, two precious metals (Gold, Silver), and 14 cryptocurrencies plus the native PEG token — at a flat $0.001 transaction fee that is burned rather than collected as revenue. Its core technology stack includes the LXRHash CPU-only Proof of Work mining algorithm (designed to push 90%+ of computation to memory access, consuming roughly 90% less energy than Bitcoin mining) and a Proof of Work-based Oracle Price Records system in which miners publish real-time market data and are ranked by delta^4 scoring, with the top 25 miners per 10-minute block sharing 5,000 PEG tokens.

The business model is not a conventional revenue capture: protocol fees are burned (deflationary token mechanic), and block rewards are inflationary PEG emissions paid to miners. Go-to-market is product-led and community-led via self-serve wallets (factomatic.io/wallet), the external ptrader.co trading platform, GitHub-hosted open-source code, and a Discord community (discord.gg/4Z7M7KY). The primary customer segments are cryptocurrency traders seeking low-fee conversions without counterparty or smart-contract exposure, CPU miners attracted to accessible hardware and lower energy costs, developers contributing to or building on the protocol, and cross-border payment users. There are no disclosed funding rounds, no institutional investors, and 1–10 reported employees; the ownership structure is described as community-driven and decentralized with no identifiable legal entity.

Name

PegNet

Website

https://pegnet.org

Company type

Private

Founded year

2019

Operating status

Operating

Headcount range

1–10 employees

Short description

PegNet is a decentralized, open-source stablecoin network built on the Factom Protocol and Ethereum that enables flat-fee ($0.001) conversion between 32+ fiat, crypto, and commodity-pegged assets, serving traders, miners, developers, and cross-border payment users.

Ownership category

akta.pro rank

Product category

Decentralized Stablecoin Network

NAICS

Financial Transactions Processing, Reserve, and Clearinghouse Activities (522320), Securities and Commodity Exchanges (52321)

SIC

Security & Commodity Brokers, Dealers, Exchanges & Services (6200)

akta.pro industry

PRIMARYFSADAMAD

Stablecoin Protocols (Decentralized)

Financial & Insurance/Crypto & Digital Assets/Decentralized Finance (DeFi) Platforms

SECONDARYBPAMAFAL

Crypto Payments & Stablecoin Settlement Platforms

Business & Public Services/Web, Mobile & Digital Platforms/Payments, Wallets & Digital Banking Platforms

SECONDARYFSAPAEAE

Payments, Remittances & Merchant Acceptance (checkout, invoicing, payroll)

Financial & Insurance/Blockchain & Web3/DeFi & On-Chain Financial Services (lending, derivatives, stablecoins, payments)

SECONDARYFSADAKAH

Oracle Node Operators & Data Provider Networks

Financial & Insurance/Crypto & Digital Assets/Blockchain Networks, Node Operations & Validators

Keywords

• Decentralized stablecoin network
• Pegged token conversions
• Cpu mining algorithm
• Oracle price records
• Cross-border crypto payments

Headquarters

HQ city

Cham

HQ country

Switzerland

HQ region

Europe

Markets served

GTM type

B2C

Offering type

Software

Cost components

Technology or R&D, Operations, Personnel, Marketing or Sales, Infrastructure

Revenue model

1. Block Rewards (PEG Mining): Oracle miners are rewarded with PEG tokens for providing price data. 5,000 PEG tokens are distributed among top 25 miners per 10-minute block, with rewards split: #1 gets 800 PEG (16%), #2 gets 600 PEG (12%), #3-10 get 450 PEG each (9%). This is inflationary token emission rather than user-facing revenue.
2. Transaction Fees (Burned): All conversions and transactions cost 1/10th of a cent ($.001). Fees are burned rather than collected as revenue, reducing token supply as network activity increases.

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels4 records

Core offering

PegNet operates a decentralized stablecoin network built as a state channel on Ethereum (via the Factom Protocol) that lets users convert between 32+ pegged tokens — fiat currencies, cryptocurrencies, and precious metals — at a flat $0.001 fee per transaction with no intermediaries, smart contracts, or counterparty risk. The offering is anchored by the PEG native token, the LXRHash CPU-only mining algorithm, a Proof-of-Work oracle system publishing real-time market prices, and the PegNet Wallet. Users access conversions via the wallet and ptrader.co, while miners and developers join via open-source GitHub documentation.

Product overview

PegNet is a stablecoin network for decentralized finance operating as a state channel on Ethereum. The core offering includes the PegNet Wallet for converting between any of 32+ pegged assets (currencies, cryptocurrencies, and commodities) at just 1/10th of a cent per transaction without middlemen. The network is anchored by the PEG token for mining rewards and protocol economics. Supporting tools include PegNetMarketCap for market data, PegNet Explorer and pExplorer for block exploration, and PegNet Stats for network analytics. The system uses LXRHash, a CPU-only mining algorithm consuming 90% less energy than Bitcoin, and employs a Proof of Work-based Oracle system for price feeds. All functionality is decentralized with open-source code on GitHub.

Differentiator

Problem solved

Functional benefit

Products and services

• PegNet Stablecoin Network A decentralized state channel on Ethereum (built on the Factom Protocol) that supports 32+ pegged tokens representing fiat currencies, cryptocurrencies, and precious metals, and enables frictionless conversion between them at $0.001 per transaction. Targeted at crypto traders, miners, developers, and cross-border payment users.
• PegNet Wallet Self-serve web wallet built on the FAT protocol that lets users convert between any PegNet Pegged Token (pAsset), track balances across all addresses using Oracle Price Records, and transact without exchanges or intermediaries.
• PEG Token The native network token of PegNet, used for mining rewards, conversions, and as the protocol's relief-valve asset for arbitrage-driven peg stability.
• LXRHash Mining CPU-only Proof-of-Work mining service based on the LXRHash algorithm, enabling individuals to mine PEG tokens on common hardware with roughly 90% less energy than Bitcoin mining and earn block rewards distributed to the top 25 miners per 10-minute block.
• Oracle Price Records (OPR) Proof-of-Work-based price oracle service in which miners publish real-time market data to the Factom blockchain; submissions are scored with a delta^4 mechanism and the top 10 winners per block share in PEG rewards. Provides the price data underpinning all PegNet conversions.
• PegNetMarketCap Market data platform providing real-time market capitalization, 24-hour trading volume, price gain, and supply gain metrics for PegNet pegged tokens.
• pExplorer Dedicated block explorer for viewing PegNet protocol activity, including on-chain transactions, Oracle Price Records, hash power statistics, and miner submissions.
• PegNet Stats

Quantifiable outcome

• Transaction fee of $0.001 per trade regardless of amount
• +2 more outcomes

Segments4 records

Ideal customer profiles4 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature5 records

Scale indicators2 records

Recent moves5 records

Expansion highlights5 records

Emerging players

• Synthetix: Synthetix enables creation and trading of synthetic assets (synths) tracking real-world assets via on-chain mechanisms. Comparable as a DeFi protocol enabling exposure to multiple asset classes, overlapping with PegNet's commodity and crypto pAssets.
• Empty Set Dollar: Empty Set Dollar is a small decentralized algorithmic stablecoin protocol using bonding curves and validator governance. Comparable as a smaller decentralized algorithmic stablecoin experiment with similar structural risks and minimal institutional backing.
• Reflexer (RAI): Reflexer issues RAI, a decentralized non-pegged stable asset governed algorithmically. Comparable as a smaller, experimental decentralized stability mechanism, though RAI is single-asset rather than multi-peg like PegNet.

Direct peers

• Frax Finance: Frax is a fractional-algorithmic stablecoin protocol combining collateralization and algorithmic mechanisms. Direct peer given its decentralized stablecoin issuance and multi-asset approach overlapping with PegNet's non-collateralized arbitrage model.
• MakerDAO: MakerDAO issues DAI, the leading decentralized collateralized stablecoin. It is the closest direct peer to PegNet as a decentralized, crypto-native stablecoin protocol with multi-collateral stability mechanisms, though PegNet uses arbitrage/pegging rather than over-collateralization.
• Terra (Terraform Labs): Terra operated a decentralized algorithmic stablecoin ecosystem (UST) with native token mint/burn mechanics and algorithmic peg maintenance. Highly comparable in concept (algorithmic, decentralized multi-stablecoin) despite Terra's 2022 collapse illustrating the model risk.
• Reserve Protocol: Reserve Protocol enables creation of decentralized, asset-backed stable tokens (RTokens) backed by baskets of assets. Comparable as a decentralized multi-asset stablecoin platform with on-chain token issuance mechanics.

Broad incumbents

• Paxos: Paxos issues regulated stablecoins (USDP, PYUSD) and provides crypto infrastructure. Comparable as a multi-asset stablecoin issuer with regulatory focus, contrasting PegNet's unregulated decentralized model.
• Tether (USDT): Tether operates USDT, the highest-volume stablecoin by trading volume. Indirect peer representing the dominant centralized stablecoin incumbent against which all decentralized alternatives compete.
• Circle (USDC): Circle issues USDC, the largest regulated, collateralized US-dollar stablecoin. Relevant incumbent comparison for centralized, regulated stablecoin dominance that PegNet's decentralized model attempts to compete against.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat4 records

Key risks6 records

Key highlights6 records

Customer concentration

• GitHubgithub.com/pegnet
• Xx.com/GetPegNet
• LinkedInlinkedin.com/company/pegnet

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about PegNet