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

Bitget has announced a major update for its BGB token, with plans for ongoing quarterly buybacks and burns.

Cryptocurrency exchange Bitget has announced updates to its Bitget Token (BGB) white paper, bringing new changes to its tokenomics.

According to the announcement made on Friday, Bitget will burn 800 million BGB tokens held by the core team, representing 40% of the total token supply. This burn will reduce the total BGB supply to 1.2 billion tokens, with 100% of the remaining tokens in circulation.

The press release states that Bitget plans to publish on-chain records of the burn. Amid the news, BGB’s price rose 23% to $8.36, pushing the token’s market cap to $11.7 billion.

In addition to the initial burn, Bitget has committed to burning BGB every three months, wiping out 20% of Bitget’s profits from transaction fees on its services. The exchange said the purchased tokens will be sent to the burn address and has promised to share details of the burn after each quarterly event.

The update comes a day after Bitget announced that it would merge Bitget Wallet Token with BGB to create an ecosystem token for both Bitget exchange and Bitget Wallet. Starting in 2025, the unified token will expand into off-chain payment scenarios, enabling payments at places like restaurants, travel, fuel and shopping, providing users with a one-stop web3 and consumption service.