The situation of PEPE tokens in terms of supply is somewhat complex, especially regarding its destruction mechanism, which is worth exploring.

Initially, PEPE had 420 trillion tokens. To make these tokens appear more sought after, the developers decided to destroy half of them, that is, 210 trillion tokens. As a result, the circulating supply would decrease, making the remaining tokens appear scarcer.

But what is the actual situation regarding the circulating supply and the maximum possible supply now? Although 210 trillion tokens were destroyed previously, new tokens were issued later, along with factors such as staking rewards and community activities, which can cause tokens to flow back. There may also be cases of dynamic destruction (destroying and then issuing again), so currently, both the circulating supply and the maximum possible supply still stand at 420 trillion tokens. It should be noted that the “maximum possible” amount is fixed by the smart contract and represents the total number of tokens the project can have. Destroying tokens does not directly change this fixed maximum supply unless the smart contract is modified, and PEPE has not undergone such an operation up to now.

Moreover, it is essential to understand the difference between circulating supply and maximum supply. Circulating refers to the total number of tokens that are available for buying, selling, and using in the market; whereas the maximum refers to the total number of tokens that the project can own. For PEPE, the maximum is 420 trillion tokens. In short, destroying tokens primarily affects the circulating supply; if you want to change the maximum supply, it must be achieved by modifying the smart contract.