Leading cryptocurrency exchange Bitget has announced a major plan to burn 40% of the total supply of its native token, equivalent to 800 million BGB tokens worth approximately $6.8 billion.
Bitget Announces Major Token Burn and Quarterly Buyback Plan
The initiative involves the launch of a quarterly token burn starting in 2025, funded by 20% of the profits from the exchange’s operations and related crypto wallet services.
This approach mirrors strategies used by other major exchanges, including Binance, to prop up token value and produce a deflationary effect.
The announcement comes after Bitget’s decision to merge its Bitget Wallet Token (BWB) with Bitget Token (BGB), creating a unified ecosystem token for both its centralized exchange and wallet services. The merger will not change the total BGB supply and the exchange rate will be set at 11.68 BWB / 1 BGB, ensuring a smooth transition for users.
Updated Whitepaper and Future Plans
Alongside the burn announcement, Bitget released an updated BGB whitepaper outlining the token’s evolving role within its ecosystem. The planned burn and token merger underscore Bitget’s commitment to enhancing BGB’s utility and value proposition for its users.
The first quarterly burn is expected to occur in early 2025, signaling the exchange’s ongoing efforts to strengthen its position in the competitive crypto market.
*This is not investment advice.
