- Bitget burns 800M BGB tokens, slashing total supply by 40% to 1.2 billion.
- BGB surges 23% to $8.49, becoming the 16th largest crypto by market cap.
- Bitget will use 20% of quarterly profits for ongoing BGB token burns starting in 2025.
Bitget, a leading crypto trading platform, recently disclosed vast alterations to its native token, Bitget Token (BGB). These include a whitepaper update, the addition of quarterly token repurchase and destruction, and the accomplishment of the first token burning. These developments aim to improve the token’s usability, bring more clarity, and promote the ecosystem in which Bitget operates in the long term.
New Token Utility and Ecosystem Integration
The latest BGB whitepaper incorporates the improvements made in Bitget’s operations and the functions of the token in its ecosystem. This revision outlines the shift in the exchange’s position, operational statistics, team updates, ecological strategy, and compliance report. Their Update also improves BGB’s functionality, such as cross-chain or multiple-chain payments for gas and the integration of PayFi applications. This includes travel, shopping, and fuel payments.
From January 2025, the gas fees of many blockchains such as Ethereum, Solana, BNB Chain, and Polygon will be paid in BGB through Bitget Wallet. Customers can select BGB, USDT, or USDC as the payment medium, making the process easier and cheaper. The wallet features a Reward Center where users can earn gas vouchers for simple actions in the ecosystem, making it useful.
BGB Token Burn Reduces Supply
The significant move unveiled in the first token burn, reduces the BGB supply. Notably, Bitget eliminated 800 million tokens held by the core team. This burn reduces the token’s circulating supply from 2 billion to 1.2 billion, representing 40% of the token total supply. The company will offer on-chain records for transparency.
Subsequent token burns are to occur every three months. With 20% of exchange and wallet earnings used to purchase and subsequently burn the tokens. These profits comprise spot, contract, leverage, swap, and Non-Fungible Token (NFT) transaction fees. The tokens will be transferred to a burn address, and the company will release transaction details after each burn process.
Moreover, Bitget anticipates that these measures will spur demand for BGB, strengthening us as a fundamental asset in cryptocurrency. After integrating the Bitget Wallet Token (BWB), the BGB multipurpose token currently functions as a utility token within the Bitget ecosystem.
