Bitget announces first BGB token burn, reducing supply by 40%

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As a seasoned researcher with years of experience in the ever-evolving world of cryptocurrencies, I find the recent developments at Bitget particularly intriguing. The decision to burn 40% of their BGB token supply and commit to quarterly burns based on trading fees is a bold move that could potentially drive up the value of the remaining tokens.

Bitget has announced a significant change for its BGB token, intending to conduct regular quarterly buybacks and destruction (burning) of the tokens.

The cryptocurrency trading platform, Bitget, has unveiled revisions to the Bitget Token (BGB) blueprint, incorporating fresh adjustments into its token economy structure.

As per a recent announcement made on Friday, Bitget is planning to destroy 800 million BGB tokens that are currently held by their core team. This accounts for approximately 40% of the total number of BGB tokens in existence. After this burn, the total supply of BGB tokens will be reduced to 1.2 billion, with all remaining tokens now in circulation.

According to a recent announcement, Bitget is planning to make available on-chain records of their burn process. This news has sparked a significant increase in BGB’s price, which surged by 23% to reach $8.36. As a result, the market capitalization of the token now stands at a massive $11.7 billion.

Beyond the initial burn, Bitget has pledged to destroy 20% of its quarterly earnings generated from trading fees across all its services by burning BGB tokens. These burned tokens will be sent to a designated address, and the exchange plans to disclose the details of the burn after each quarter ends.

A day after announcing the merger of their Bitget Wallet Token with BGB to establish a unified ecosystem token for both the Bitget exchange and wallet, the update reveals that starting in 2025, this combined token will be extended into off-chain payment scenarios. This means users can make payments at places like restaurants, travel, fuel stations, and shopping centers using this token. Effectively, it aims to provide a one-stop solution for web3 services and consumer needs.

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2024-12-27 14:17