Bitget has revealed a significant update for its BGB token with intentions for continuous quarterly burns and repurchases.
The cryptocurrency exchange Bitget has revealed fresh modifications to its tokenomics and improvements to its Bitget Token whitepaper.
Bitget announced on Friday that it would burn 800 million BGB tokens, or 40% of the entire token supply, owned by the core team.
With 100% of the remaining tokens in circulation, this burn will lower the total BGB supply to 1.2 billion tokens.
According to the news announcement, Bitget intends to publicize the burn’s on-chain recordings. The price of BGB surged 23% to $8.36 amid the news, increasing the token’s market capitalization to $11.7 billion.
In addition to the first burn, Bitget has promised to destroy 20% of its profits—from trading fees across all of Bitget’s services—every quarter to burn BGB.
The exchange promised to reveal the specifics of the burn following each quarterly event and stated that the repurchased tokens would be delivered to a burn address.
The move follows Bitget’s announcement that it will combine its Bitget Wallet Token with BGB to form a single ecosystem token for the Bitget Wallet and Bitget exchange.
In order to give customers a one-stop web3 and consumption service, the combined token will begin to extend into off-chain payfi scenarios in 2025.
This will enable payments in restaurants, transport, petrol, and shopping. The firm also revealed an updated plan for the Bitget Wallet on December 27.
According to this roadmap, BGB will be the main token used to pay multi-chain gas fees through its GetGase function starting in January 2025.
