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Bitget has taken a bold step in enhancing the value of its BGB token by executing a substantial token burn, signaling its commitment to a sustainable token economy.
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This initial burn, coupled with plans to utilize a portion of quarterly profits for future burns, reflects Bitget’s strategy to maintain demand and stabilize token prices.
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CEO Gracy Chen remarked, “The completion of Bitget’s first-ever BGB burn… stands as a defining moment in our journey…” emphasizing the importance of this initiative.
Bitget executes a significant burn of 800 million BGB tokens to stabilize value, initiating a quarterly burn strategy set to begin in 2025.
All About Bitget’s Token Burn
On December 30, Bitget announced that it burned 800 million BGB tokens, successfully reducing its total supply from 2 billion to 1.2 billion tokens. The burnt tokens were valued at nearly $5 billion, making this one of the most substantial token burns in the crypto market.
“The completion of Bitget’s first-ever BGB burn, destroying 800 million tokens—40% of the total supply, stands as a defining moment in our journey to build a sustainable and impactful token economy for BGB. This step aligns with Bitget’s goal of building long-term value for users by maintaining transparency and providing high utility for BGB,” stated Bitget CEO Gracy Chen.
Token burn acts as a mechanism for permanently removing certain quantities of cryptocurrencies from circulating supply by sending them to inaccessible wallets. Such actions are often aimed at managing the inflation of token supply and enhancing demand, as fewer tokens in circulation generally lead to higher perceived value.
Historically, various crypto teams have executed token burns to stabilize or push up their token prices, as evidenced by the memecoin BONK, which saw a price surge of 25% in July following a proposal to burn 84 billion tokens.
Looking forward, Bitget has detailed a robust quarterly BGB burn strategy scheduled to commence in 2025. Under this plan, 20% of quarterly profits from exchange operations will be dedicated to repurchasing and burning BGB tokens, creating a recurring mechanism to manage supply effectively.
After repurchase, the acquired BGB tokens will be permanently destroyed by transferring them to a burn address, further solidifying the commitment to a controlled supply environment.
In addition to this burn strategy, Bitget recently announced a merger of its two tokens, Bitget Token (BGB) and Bitget Wallet Token (BWB). This announcement contributed to a significant price rally, pushing BGB to an all-time high of $8.49.
In December, BGB emerged as a top-performing coin with its price soaring over 260% in just 30 days. At the beginning of the month, BGB was trading around $1.6, but by the latest report, it is trading at approximately $5.75, showcasing remarkable growth.
With a market cap of $8.56 billion, Bitget Token (BGB) is currently the 25th largest cryptocurrency, reflecting its significant market influence.
Conclusion
The recent burn of 800 million BGB tokens marks a strategic initiative by Bitget to enhance its token’s long-term value and establish a solid foundation for future policies. By integrating quarterly burn mechanisms and merging tokens, Bitget aims to boost demand and support price stability as it navigates the evolving landscape of cryptocurrency. This careful management of supply underlines the exchange’s commitment to fostering a trusted and valuable ecosystem.
