PEPE coin’s tokenomics and burn mechanics are key features that shape its identity as a meme cryptocurrency and influence its market behavior. Launched with a laughably large total supply of about 420.69 trillion tokens, PEPE’s challenge was to create perceived scarcity to drive price demand. To do this, the team implemented significant token burns and deflationary mechanics.

Early on, PEPE burned roughly half of its initial supply—about 210 trillion tokens—which was a strategic move to slash the overwhelming supply and inject scarcity into the ecosystem. Following that, the project continues with ongoing burn campaigns, including a recent initiative that burns a fixed amount of tokens weekly. These burns remove tokens permanently from circulation, ideally increasing scarcity and pushing prices upward by design.

Unlike many meme coins, PEPE does not impose transaction taxes, making it attractive for traders and speculators who want to swap tokens without fees. Instead, it relies on redistribution systems that reward long-term holders, alongside the burns, to maintain community involvement and incentivize holding rather than quick flipping.

However, despite these burns, the token’s circulating supply remains enormous, and the extent of genuine scarcity is moderated by tokens held in multi-signature wallets reserved for liquidity or exchange listings. This dynamic means that while burns can catalyze short-term price spikes, PEPE’s price is ultimately driven by hype cycles and social media momentum rather than intrinsic utility or fundamental scarcity.

For investors, PEPE’s tokenomics offer an exciting but high-risk speculative play, where understanding burn schedules and market sentiment is crucial. The burns create wild price swings from perceived supply shocks, but long-term value relies heavily on continued community enthusiasm in the meme-driven crypto space.

In essence, PEPE combines large-scale tokenomics engineering with viral internet culture, making it a fascinating case study in how supply mechanics and meme power collide in crypto.