If you've searched "PRC-20" and come away confused, you're not alone, partly because the word "Pepe" is attached to several completely different crypto projects. This explainer clears that up and walks through how tokens are actually created and traded on the Pepecoin blockchain, in plain language.
Pepecoin (PEP) is not the $PEPE you're thinking of
There are two well-known things called some version of "Pepe coin." One is $PEPE, an ERC-20 memecoin on Ethereum. The other, the one this article is about, is Pepecoin (PEP), an independent Layer-1 blockchain that launched on January 30, 2024. They are unrelated.
Pepecoin the blockchain is a proof-of-work network in the lineage of Bitcoin and Dogecoin. It uses the Scrypt hashing algorithm, supports merge-mining (AuxPoW) so miners can secure it alongside Litecoin and Dogecoin, and distributes 100% of its supply through mining, with no pre-mine and no insider allocation.
What is a memecoin, briefly
A memecoin is a cryptocurrency whose value comes mostly from community, culture, and attention rather than from a cash-flowing product. They are often created for fun, spread through internet culture, and are extremely volatile. That is the genre PRC-20 tokens usually belong to.
So what is PRC-20?
PRC-20 is a token standard that operates on top of the Pepecoin chain, conceptually similar to how BRC-20 tokens operate on Bitcoin. Rather than running complex smart contracts the way Ethereum does, this style of standard uses the base chain to record token data (deployments, mints, and transfers) in an agreed-upon format that wallets and explorers can read consistently. The result is that anyone can issue a fungible token the whole ecosystem recognizes, while still inheriting the security of the underlying proof-of-work chain.
How a PRC-20 token gets created and traded
At a high level there are three moments in a token's life:
- Deploy - the token's parameters (name, ticker, supply rules) are written to the chain.
- Mint / distribute - units of the token come into existence and reach holders.
- Trade - people buy and sell it.
Doing all of that by hand is fiddly, which is why launchpads exist. Tools such as TokenPrinter wrap deployment, the initial market, and trading into a single non-custodial interface, so a creator can launch a PRC-20 token without touching raw transactions, and buyers can trade it from their own wallets.
The bonding curve and "graduation"
Most launchpads price early trading with a bonding curve instead of a traditional order book. The more of a token's primary supply people buy, the higher the price climbs along a known formula, because the curve itself always provides a counterparty. When enough has been bought that the token reaches a set market-cap threshold, the platform deposits liquidity and the token graduates into normal open-market trading.
Why build on Pepecoin specifically
People choose Pepecoin for reasons that are as much cultural as technical: a fair-launched, fully-mined base coin with no insider supply, security borrowed from the merge-mining relationship with Litecoin and Dogecoin, and a smaller, tight-knit community where a new project can actually be noticed.
Understand the risk before you participate
PRC-20 tokens are overwhelmingly memecoins, and memecoins are speculative and frequently go to zero. Self-custody also means you are responsible for your own keys and transactions. Treat anything in this space as high-risk and for entertainment, research projects independently, and never commit money you cannot afford to lose. This article is educational and not financial advice.