Bitget has announced earlier today on December 28th transformative updates for its native token, Bitget Token (BGB).
The release of a new whitepaper outlines bold plans, including the immediate burning of 800 million BGB tokens which are valued at over $5 billion based on current prices, and expanded use cases for the token.
This initiative demonstrates Bitget’s commitment to deflationary tokenomics and enhances BGB’s utility in both centralized and decentralized ecosystems.
$5 Billion Token Burn to Kickstart Deflationary Model
As part of the updated whitepaper, Bitget will permanently burn 800 million BGB tokens, equivalent to 40% of the token’s total supply. This move will reduce the circulating supply to 1.2 billion tokens, making BGB scarcer and potentially more valuable.
Starting in 2025, Bitget will conduct quarterly burns, using 20% of its profits from the exchange and wallet services, including spot trading, futures, and NFT transactions, to buy back and burn tokens.
All burn activities will be publicly recorded on the blockchain to ensure transparency and build trust within the community.
Currently, the BGB token is trading at $8.35 and is up by 7.74% in the last 24 hours. The global market cap stands at $11.71 billion and the 24-hour trading volume is also up by 1.36%.
Unifying BGB Across Centralized and Decentralized Platforms
Earlier this year, Bitget merged Bitget Token (BGB) with Bitget Wallet Token (BWB), establishing BGB as the sole token across its ecosystem. This unified approach streamlines operations and enhances utility.
Looking forward, Bitget aims to integrate BGB deeper into the on-chain ecosystem, expanding its use cases to staking, liquidity provision, and eligibility for airdrops. Additionally, BGB will play a key role in Bitget Wallet services, allowing users to pay multi-chain gas fees and participate in everyday payment scenarios through PayFi (Payment and Finance) solutions.
Bitget’s Vision for the Future
Bitget has quickly risen as one of the fastest-growing centralized exchanges, supported by a global team of 1,600 professionals across more than 60 countries. Its ecosystem includes robust trading options, cutting-edge security features like a $600 million Protection Fund, and a monthly Proof-of-Reserve report.
Gracy Chen, CEO of Bitget, emphasized the company’s focus on innovation and mass adoption. “Burning $5 billion worth of BGB aligns with our goal to make it a powerful medium for transacting value,” she said. “Our next phase will integrate BGB into more decentralized applications, bringing it to the masses and making PayFi a part of everyday life.”
Record-Breaking Growth for BGB
BGB has been on a meteoric rise, achieving a new all-time high after breaking the $3.6 resistance level. Its market capitalization has surged by over 1,000% in 2024 alone, showcasing strong demand and a growing investor base. The token’s performance reflects the strength of Bitget’s ecosystem and the increasing utility of its native assets.
In a parallel development, Bitget has partnered with Fiat24, a fintech company leveraging blockchain for innovative financial solutions. Together, they aim to revolutionize cryptocurrency payments through PayFi solutions. The collaboration will focus on integrating major cryptocurrencies into seamless payment systems.
Bitget’s decision to reduce token supply while enhancing its utility represents a significant milestone in its journey. With ambitious plans and strong market performance, the exchange continues to solidify its position as a leader in the cryptocurrency space. By prioritizing transparency, innovation, and real-world applications, Bitget aims to create lasting value for its users and BGB token holders.
Also Read: Bitget Announces Return To UK Market After Meeting FCA Requirements