The PEPE coin burn mechanism is the process of permanently removing a portion of the PEPE token from the circulating supply, aimed at creating scarcity and potential price increase. The burn is usually carried out through a smart contract, transferring tokens to an inaccessible 'burn wallet.' Although PEPE is a meme coin with no clearly defined intrinsic value, the burn mechanism helps attract investors by controlling inflation. Some new versions of PEPE integrate automatic burn of transaction fees, creating an incentive to maintain price and increase scarcity over time.