Pepe Unchained (PEPU) is an ERC-20 token on Ethereum that acts as the native currency of the Pepe Unchained Layer-2 (L2) network, a meme-focused rollup built around Ethereum. The current PEPU contract on Ethereum is
0x93aA0ccD1e5628d3A841C4DbdF602D9eb04085d6, with a fixed maximum supply of 16 billion tokens.

Pepe Unchained itself is a general-purpose Ethereum L2 designed specifically for the “meme economy”. The project aims to provide lower transaction fees and faster confirmation for meme tokens, NFTs and related dApps, while keeping Ethereum as the settlement layer. Within this design, PEPU is the base asset of the chain: network configuration and user guides describe PEPU as the currency symbol of the L2 and state that users “need $PEPU to use dApps, send tokens, and do anything” on the network.

The project has gone through a significant technical and token migration. An earlier version of PEPU, with an 8 billion supply and a different contract, was used during the initial presale and launch phase and is now generally labelled as “Pepe Unchained (Old)” on data aggregators. In May 2025 the team deployed the current PEPU contract and announced a move from an Optimism-based rollup operated via Conduit to a new Layer-2 stack powered by Arbitrum, while keeping PEPU as the custom gas token for the chain. The migration involved a 1:1 airdrop of the new token to holders of the legacy PEPU on both L1 and the old L2.

Overall, PEPU represents both the on-chain asset traded on Ethereum and exchanges, and the native currency used within the Pepe Unchained Layer-2 ecosystem.

1. Gas and transaction fees on the L2

On the Pepe Unchained Layer-2 network, PEPU functions as the gas token. Network parameters in the official documentation list “PEPU” as the native currency, and user guides state that PEPU is required to interact with dApps, send tokens and carry out other activity on the chain. All ordinary transactions and smart-contract calls on the L2 consume PEPU as fees.

2. Staking and rewards

Pepe Unchained operates a staking programme where users can lock PEPU on the L2 to earn additional PEPU. The docs describe rewards being distributed on a per-block basis (for example, 6.34 PEPU per block at the time of the last update), with a seven-day lock on new stakes and rewards accruing continuously while tokens remain staked. The project’s migration announcement also notes that the expanded supply of the new token is intended, in part, to support a larger and longer-running staking programme.

3. Bridging between Ethereum and Pepe Unchained

PEPU exists natively on Ethereum as an ERC-20 token and can be bridged to the Pepe Unchained L2 via the official bridge at pepubridge.com. Users typically acquire PEPU on Ethereum (through decentralised exchanges such as Uniswap or on supported centralised exchanges), then bridge it into the L2 where it becomes spendable as gas and for local applications.

4. Trading, liquidity and DeFi

PEPU is the primary token used across the Pepe Unchained ecosystem:

• It is the central asset on the project’s own DEX (PepeSwap) on the L2, and also trades on Ethereum-based DEXs and multiple centralised exchanges.
• It commonly serves as a base or quote asset in liquidity pools and markets where Pepe-themed or other meme tokens are launched and traded on the L2.

As a result, PEPU acts as the main unit of account within the ecosystem’s trading and DeFi activity.

5. Ecosystem incentives and programmes

Project documentation and press material describe several initiatives that are funded or rewarded in PEPU:

• The “Frens With Benefits” developer grant programme, which provides financial support for teams building dApps and tokens on Pepe Unchained’s L2.
• Staking-based community incentives that the team has said it intends to expand using the larger supply of the new token.

These uses position PEPU as the primary reward and incentive asset for ecosystem growth.

6. Planned governance role

Several exchange and partner descriptions state that PEPU is intended to support community governance over aspects of the Pepe Unchained ecosystem, with staked or held tokens giving users the ability to participate in decision-making. The main GitBook documentation does not yet describe a detailed on-chain governance model, so governance utility should currently be viewed as a stated aim rather than a fully specified mechanism.