The 20S proteasome is a self-compartmentalized protease which degrades unfolded polypeptides and has been purified from eucaryotes, gram-positive actinomycetes, and archaea. Energy-dependent complexes, such as the 19S cap of the eucaryal 26S proteasome, are assumed to be responsible for the recognition and/or unfolding of substrate proteins which are then translocated into the central chamber of the 20S proteasome and hydrolyzed to polypeptide products of 3 to 30 residues. All archaeal genomes which have been sequenced are predicted to encode proteins with up to ϳ50% identity to the six ATPase subunits of the 19S cap. In this study, one of these archaeal homologs which has been named PAN for proteasome-activating nucleotidase was characterized from the hyperthermophile Methanococcus jannaschii. In addition, the M. jannaschii 20S proteasome was purified as a 700-kDa complex by in vitro assembly of the ␣ and  subunits and has an unusually high rate of peptide and unfolded-polypeptide hydrolysis at 100°C. The 550-kDa PAN complex was required for CTP-or ATP-dependent degradation of -casein by archaeal 20S proteasomes. A 500-kDa complex of PAN(⌬1-73), which has a deletion of residues 1 to 73 of the deduced protein and disrupts the predicted N-terminal coiled-coil, also facilitated this energy-dependent proteolysis. However, this deletion increased the types of nucleotides hydrolyzed to include not only ATP and CTP but also ITP, GTP, TTP, and UTP. The temperature optimum for nucleotide ( Energy-dependent proteolysis is not only vital to elimination of defective cellular proteins but is also central to regulation of cell division, metabolism, transcription, and other essential cellular functions (12,22). A small group of related energydependent proteases have been identified from several diverse organisms; these proteases include Lon, FtsH (HflB), ClpAP, ClpXP, HslUV (ClpYQ), and the 26S proteasome (4, 39). Although this group of proteins shares limited primary sequence identity, the proteases have converged to a universal structure in which relatively nonspecific proteolytic active sites are compartmentalized from the cell by narrow openings (37, 67). The current model is that the degradation of biological substrates by this group of proteases requires additional energy-dependent proteins or protein domains for the recognition and/or unfolding of substrate proteins (21,29,65). Some of these energy-dependent components may not only participate in proteolysis but also have independent roles as chaperones (60). Thus, the energy-dependent component of these proteases may provide a proofreading step following the initial binding of protein substrates and enable the cell to distinguish between proteins destined for refolding, disaggregation, or destruction (23).Some energy-dependent proteases are organized in a symmetry mismatch, including ClpAP and ClpXP which are complexes of the hexameric ClpA and ClpX ATPases interfaced with the ClpP protease of two heptameric rings (5). It is postulated that hydrolysis of nucleotides...