Following the release of its new white paper, global cryptocurrency exchange Bitget revealed its plan to burn 800 million BGB tokens, valued at over $5 billion, in a move to reduce supply and increase utility. The token burning took place and was announced last Dec. 31, 2024.
What’s the significance: Burning those 800 million tokens made BGB scarcer, which might drive up demand and, in turn, its value.
Key details:
- Starting this year, Bitget will allocate 20% of profits from its Bitget Exchange and Bitget Wallet, including revenues from spot, futures, and NFT transactions, for the quarterly BGB buybacks and burns.
- Quarterly burns will continue indefinitely as long as Bitget is profitable.
- The burns will permanently remove the BGBs, including locked and circulating tokens.
- For the first burn (coming soon), Bitget is planning to burn 800 million BGB tokens (40% of the total supply) held by the core team, valued at over $5 billion.
- Of 800 million tokens burned, 21% are circulating, and 19% are locked.
- To keep everything transparent, Bitget noted that it will make sure all burn activities are recorded on the blockchain.
Key quote:
“CEXs are the backbone of crypto’s growth towards mass adoption. Bitget’s mission of fuelling the next wave of innovation will unfold in the coming year… Our decision to burn $5 billion worth of BGB aligns with our plans of making it a powerful medium of transacting value. Our next phase will extend BGB’s utility on-chain, integrating it into more Dapps and bringing it to the masses, making BGB available to all, making PayFi a part of everyday life.”
Gracy Chen, CEO, Bitget
What is BGB: Bitget Token (BGB) serves as the dedicated platform token for both the centralized Bitget Exchange and the decentralized Bitget Wallet ecosystem. It functions as a utility token, enabling trading, transaction fee payments, participation in platform activities, and access to exclusive benefits. The aim is to empower BGB holders to share in Bitget’s growth and success.
- Previously: It can be remembered that Bitget merged its native tokens, Bitget Token (BGB) and Bitget Wallet Token (BWB), into a unified token, BGB, to power both its centralized and decentralized ecosystems, expand utility into real-world applications, and strengthen its growing web3 ecosystem.
New Whitepaper: Accordingly, Bitget also unveiled its new whitepaper which outlines the platform’s plans to expand the token’s utility across on-chain applications, PayFi payment scenarios, and internal platform benefits.
- Check out the new whitepaper here.
The numbers: As of writing, CoinGecko data shows that Bitget Token (BGB) currently ranks #29 with a price of $6.21.
- It increased by 1.8% in the last 24 hours and a market cap of $7.45 billion.
- After the initial burn, the token’s max supply will decrease from 2,000,000,000 to 1,200,000,000.
What’s next: Bitget plans to bring BGB into more decentralized applications (DApps) to bridge the gap between its centralized and decentralized offerings.
This article is published on BitPinas: 800 Million BGB Tokens to Be Burned, Boosting Value and Utility
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