Bitget Announces First BGB Token Burn, Reducing Supply by 40%

Cryptocurrency exchange Bitget has made a major update to its Bitget Token (BGB) tokenomics, unveiling a plan for substantial token burns and ongoing repurchases. This move is part of the exchange’s broader strategy to enhance the value and sustainability of BGB, and it follows the recent announcement of a merger between Bitget’s native BGB token and the Bitget Wallet Token.

Initial Token Burn Cuts BGB Supply by 40%

In a press release issued on Friday, Bitget revealed that it will burn a total of 800 million BGB tokens. This represents a significant 40% reduction in the token's overall supply. Following the burn, the circulating supply of BGB will be reduced to 1.2 billion tokens, with all remaining tokens now in circulation.

To ensure transparency, Bitget has committed to publishing on-chain records of the burn, allowing the community and investors to track the reduction in real time. In the wake of the announcement, BGB’s price surged by 23%, reaching a value of $8.36 per token, which pushed the token’s market capitalization to an impressive $11.7 billion.

Quarterly Burns and Profit Sharing Plan

This initial burn is only the beginning. Bitget has also outlined plans for quarterly token burns, in which 20% of the exchange’s profits—derived from trading fees across Bitget’s services—will be used to repurchase and burn additional BGB tokens. The tokens repurchased in each quarter will be sent to a burn address, ensuring they are permanently removed from circulation. Bitget has promised to share detailed records of each burn event following the completion of every quarterly cycle.

Merger with Bitget Wallet Token: A Unified Ecosystem Token

The announcement of the token burn comes just one day after Bitget revealed its plans to merge the Bitget Wallet Token (BWT) with BGB. This merger aims to create a unified ecosystem token that will serve both the Bitget exchange and the Bitget Wallet. The combined token will be integrated across various services, offering users a seamless Web3 and consumption experience.

Starting in 2025, the merged token will expand into off-chain payment solutions, enabling users to make purchases at a range of locations such as restaurants, travel agencies, fuel stations, and retail outlets. By combining the exchange and wallet functionalities into one ecosystem token, Bitget aims to provide a one-stop solution for Web3 payments and consumption services, paving the way for the broader adoption of its platform.

Aiming for Long-Term Growth and Sustainability

Bitget’s moves signal a commitment to the long-term sustainability and growth of BGB, providing both immediate value through the burn and a forward-looking strategy with its quarterly token burns and ecosystem expansion. With the token's market capitalization on the rise and the integration of new features, Bitget is positioning itself as a key player in the evolving Web3 and blockchain landscape.