Dubai Launches Sandbox to Power a Decentralized Machine Economy
The United Arab Emirates (UAE) is taking a major leap in the decentralized technology space with the creation of the Machine Economy Free Zone in Dubai. Spearheaded by Layer-1 blockchain platform Peaq and Pulsar Group, the initiative aims to integrate robotics, artificial intelligence (AI), and tokenized infrastructure into a future economy that rewards participation through blockchain-based revenue sharing.
The Free Zone offers a regulated environment for testing and building machine economy and DePIN (Decentralized Physical Infrastructure) applications.
Empowering the Machine Economy Through Tokenization
This sandbox model is designed to allow developers, startups, enterprises, and government stakeholders to test autonomous systems that can generate value and share earnings via tokens.
Peaq co-founder described the vision as a “human-centric economy” where machines and robots act autonomously, yet ethically, creating revenue and distributing it back to people through tokenized systems.
“This is not just automation — it’s democratization of ownership and revenue through tokenization,” he explained.
Examples of early-stage projects include:
- Community-owned wearable devices for air quality monitoring
- Hyperlocal weather forecasting networks
- Virtual power plants created from community-connected devices
- Noise pollution tracking via smartphones
Revenue Sharing and Universal Basic Ownership (UBO)
At the core of this vision is machine tokenization, where tokenholders can receive passive income from the economic activity of autonomous systems.
Imagine an autonomous robot-run café that reports transactions on-chain. Tokenholders could be rewarded for each sale, creating new passive income models.
This aligns with the Universal Basic Ownership (UBO) model, where individuals whose jobs may be displaced by machines still receive value generated by those machines.
The UAE’s RWA and DePIN Momentum
The UAE has rapidly emerged as a hub for real-world asset (RWA) tokenization, supported by the proactive efforts of Dubai’s Virtual Asset Regulatory Authority (VARA). Blockchain-based real estate deals in the region have already crossed billions of dollars.
With the global DePIN market expected to reach $3.5 trillion by 2028, the UAE’s Machine Economy Free Zone could play a defining role in the future of decentralized automation and token-based ownership.