Pepe Coin (PEPE) has implemented various mechanisms to manage its supply and potentially influence its value.
- Initial Burn: PEPE conducted a significant burn of 210 trillion tokens in April 2023, representing 50% of its initial supply, to create scarcity and potentially enhance value.
- Deflationary Mechanism: A small portion of tokens is burned with each transaction to reduce the total supply over time.
- Subsequent & Community-Driven Burns: Additional burn events have occurred, including some with partners like the BasedAI Network, and the community also organizes burns.
- Impact on Circulating Supply: Despite burns, the circulating supply remains substantial at around 200 trillion tokens as of February 2025, with a total supply capped at 420 trillion. Factors like reintroducing burned tokens, minting new ones, or distributing tokens for staking may offset burn reductions.
- Redistribution System: A portion of each transaction (1%) is distributed among existing token holders to incentivize holding.
- No-Tax Policy: PEPE transactions do not have additional fees.
- Volatility: Burns do not guarantee price appreciation, as effectiveness depends on market demand and investor sentiment. PEPE’s value can fluctuate significantly due to market volatility and its status as a meme coin.
- Limited Impact on Max Supply: The total maximum supply of PEPE is fixed at 420 trillion. Burn events primarily impact the circulating supply.
Investors should conduct thorough research and understand the risks associated with investing in cryptocurrencies, including PEPE. Monitoring official PEPE channels and blockchain explorers is recommended for current information on burns and supply changes.
