PEPE, a meme coin, burned 50% of its supply (210 trillion tokens) to reduce circulation and increase scarcity. However, the circulating and max supply remains at 420 trillion due to reintroduced tokens, minting for rewards, and ongoing burns. The max supply is fixed at 420 trillion.

#Initial Burn Event (April 2023):

At the time of its launch in April 2023, the PEPE token had a total supply of 420 trillion tokens. To create scarcity and stimulate demand, the developers decided to burn 50% of the total supply, or around 210 trillion tokens. This large-scale burn was done to improve the token's economic model by reducing the circulating supply and increasing the token's perceived scarcity.

While this burn was a strategic move to manage PEPE's supply, there was one key point that often causes confusion: burning tokens does not reduce the "max supply" set in the token's smart contract. The max supply is a fixed number that determines the total amount of tokens that can exist for that particular project. In the case of PEPE, the max supply remains 420 trillion tokens, even after the initial burn of 210 trillion.

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#Why Is the Circulating Supply Still 420 Trillion?

Despite the significant burn event, the circulating supply of PEPE remains at 420 trillion tokens as well. This raises the question of why the circulating supply hasn’t decreased as much as expected after burning half of the total supply.

There are several possible explanations for this:

1. Reintroducing Burned Tokens: After the burn event, it’s possible that some or all of the burned tokens were reintroduced into circulation. This can happen through various mechanisms such as staking rewards, liquidity pools, or community-driven initiatives. If the tokens burned initially were later brought back into circulation via these mechanisms, the circulating supply would remain high.

2. Burn Event Not Fully Permanent: Another reason for the unchanged circulating supply could be that the burn wasn’t permanent or was part of a dynamic burn mechanism, where tokens can be burned and reintroduced over time. If this is the case, the tokens could have been reissued after the burn event or during later phases of the project’s development.

3. Minting and Rewards: Some meme coin projects, including PEPE, might also mint additional tokens after the initial launch or distribute tokens for specific activities, such as staking, airdrops, or community rewards. This process could have led to more tokens entering the circulating supply after the initial burn.

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#The_Role of Max Supply:

It’s important to understand the distinction between circulating supply and max supply:

Circulating Supply: This refers to the total number of tokens that are actively available in the market and can be traded or used.

Max Supply: This is the fixed limit on the total number of tokens that can ever exist for a project. For PEPE, the max supply is 420 trillion tokens.

Burning tokens typically affects the circulating supply, but it does not directly alter the max supply unless the smart contract is updated. The max supply remains at 420 trillion unless the developers decide to modify the contract, which has not been the case for PEPE so far.

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#Ongoing Burns and Community Actions:

Although the initial burn event significantly reduced the circulating supply, PEPE has continued to engage in periodic burns as part of its tokenomics. These burns are often community-driven, with holders or fans of the project organizing burn events to further reduce the supply and show support for the project.

Despite these efforts, the circulating supply has not decreased drastically, which might suggest that further tokens have been minted or reintroduced into circulation to meet liquidity needs or provide rewards for holders.

#Conclusion:

PEPE’s burn mechanism has been a key part of its tokenomics strategy, with an initial burn of 50% of the total supply (around 210 trillion tokens). However, the circulating supply remains at 420 trillion tokens, the same as the max supply. This is due to factors such as the reintroduction of burned tokens, the minting of new tokens, or the distribution of tokens for staking and rewards.

The total max supply of PEPE remains fixed at 420 trillion tokens, and the burn events primarily affect the circulating supply. For up-to-date information on burns or any changes to the supply, it’s best to follow official PEPE channels or check blockchain explorers for the latest data on burn transactions and token movements.