The PEPE token’s underlying contract, which recently experienced a 7500x increase in market value, has various dubious features, including one that may ban users. A single wallet shouldn’t have too much power over the token’s supply, as this might result in market manipulation and unfair advantage.
The decentralisation of the coin has been questioned in light of this new function, though. Because the onlyOwner modifier restricts who may use the blacklist function, the contract owner has a lot of control over how the token is used and distributed. One of the main tenants of blockchain technology is decentralisation, which is hindered by this centralised control over the capacity to ban addresses.
One wallet that had about $850,000 worth of PEPE has already been banned and is no longer permitted to use the token for any transactions. The wallet’s owner purchased PEPE at the beginning of the token’s journey on the market for just $27.
There shouldn’t be a single centre of power in a fully decentralised organisation. Instead, choices are made through consensus procedures, and power is spread among a network of nodes. While the concentration of authority over Pepe token’s blacklist function is an illustration of how blockchain technology may sometimes perpetuate current power structures, this technology has the ability to foster a more decentralised and democratic society.
It is important to note that there are several approaches to the problem of wallets storing huge numbers of tokens without sacrificing decentralisation. To avoid the concentration of power in a small number of hands, several projects have added token burning mechanisms or automated transfer of tokens to all holders.
