Proteasomes belong to the N-terminal nucleophile group of amidases and function through a novel proteolytic mechanism, in which the hydroxyl group of the N-terminal threonines is the catalytic nucleophile. However, it is unclear why threonine has been conserved in all proteasomal active sites, because its replacement by a serine in proteasomes from the archaeon Thermoplasma acidophilum (T1S mutant) does not alter the rates of hydrolysis of Suc-LLVY-amc (Seemü ller, E., Lupas, A., Stock, D., Lowe, J., Huber, R., and Baumeister, W. (1995) Science 268, 579 -582) and other standard peptide amide substrates. However, we found that true peptide bonds in decapeptide libraries were cleaved by the T1S mutant 10-fold slower than by wild type (wt) proteasomes. In degrading proteins, the T1S proteasome was 3.5-to 6-fold slower than the wt, and this difference increased when proteolysis was stimulated using the proteasome-activating nucleotidase (PAN) ATPase complex. With mutant proteasomes, peptide bond cleavage appeared to be rate-limiting in protein breakdown, unlike with wt. Surprisingly, a peptide ester was hydrolyzed by both particles much faster than the corresponding amide, and the T1S mutant cleaved it faster than the wt. Moreover, the T1S mutant was inactivated by the ester inhibitor clasto-lactacystin--lactone severalfold faster than the wt, but reacted with nonester irreversible inhibitors at similar rates. T1A and T1C mutants were completely inactive in all these assays. Thus, proteasomes lack additional active sites, and the N-terminal threonine evolved because it allows more efficient protein breakdown than serine.The ubiquitin-proteasome system is the major pathway for degrading proteins in the cytosol and nucleus in eukaryotic cells (1, 2). Proteins marked for degradation by an attachment of a polyubiquitin chain are hydrolyzed by the 26 S proteasome in an ATP-dependent manner (3-5). This complex consists of the 20 S core proteasome, in which proteolysis occurs, and two 19 S regulatory complexes (6, 7). 20 S proteasomes also exist in archaea and many eubacteria, which lack both 26 S proteasomes and ubiquitin (8). The 20 S proteasome from Thermoplasma acidophilum has proven to be especially useful for studies of the proteasome's structure and catalytic mechanism (9, 10). Like the eukaryotic core particle, the T. acidophilum proteasome is a cylindrical complex consisting of four superimposed 7-membered rings (11). However, these archaeal particles are simpler and more symmetric in organization. The two outer rings are composed of identical ␣-subunits, and its inner rings are composed of identical -subunits, each of which contains an active site. These 14 active sites are located on the inner surface of this particle.The narrow openings in the ␣-rings serve as sites of substrate entrance into the inner chamber of the cylinder where proteolysis occurs. Globular proteins are too large to traverse these openings and need to be unfolded to be translocated into the 20 S particle for degradation (11). Presumably, t...