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

Bitget has announced its first BGB token burn, marking a significant update to its tokenomics and reducing the total supply by 40%. The exchange revealed plans to burn 800 million BGB tokens held by the core team, which represents 40% of the total supply, effectively reducing the overall BGB supply to 1.2 billion tokens. The remaining tokens will be fully circulating.

The exchange plans to publicly release on-chain records of the burn, showcasing the transparency of the process. Following the announcement, the price of BGB surged by 23%, reaching $8.36, with its market capitalization growing to $11.7 billion.

In addition to the initial burn, Bitget outlined a commitment to regular quarterly burns. Each quarter, 20% of Bitget’s profits from trading fees will be repurchased and burned. These repurchased tokens will be sent to a burn address, with Bitget sharing the details of each quarterly burn event to maintain transparency.

The announcement comes shortly after Bitget revealed plans to merge its Bitget Wallet Token with BGB to create a unified ecosystem token for both the Bitget exchange and Bitget Wallet. This new token will start in 2025 and will be used in off-chain payfi scenarios, including payments for restaurants, travel, fuel, and shopping, effectively combining web3 and real-world consumption services.

Additionally, Bitget introduced an updated roadmap for its Bitget Wallet, where BGB will become the primary token for multi-chain gas fee payments via its GetGase feature, set to launch in January 2025.