Bitget Completes First-Ever Burn of 800 Million BGB Tokens, Reducing Supply by 40%

Bitget, the leading cryptocurrency exchange and Web3 company has successfully completed the initial burn of its native Bitget Token (BGB), reducing the total supply by 40%.

Cryptocurrency exchange Bitget has burned 800 million of its native BGB tokens in the first batch of a planned quarterly buyback and销毁.

The tokens, which are valued at around $240 million at current prices, were burned on December 31, reducing the total supply of BGB from 2 billion to 1.2 billion tokens.

Of the burned tokens, 19% were from the core team's holdings, and 21% were from both the circulating supply and additional core team reserves.

The move is part of Bitget's strategy to enhance the value and scarcity of BGB, which is used to pay for trading fees, governance rights, and other perks within the Bitget ecosystem.

According to the exchange, the burning aligns with industry practices that aim to benefit token holders in the long term.

Bitget has outlined a quarterly BGB burn mechanism, set to begin in 2025, where 20% of quarterly profits from exchange and wallet operations will be allocated to repurchase and burn BGB tokens.

The profits to be considered for this mechanism include transaction fees from spot, futures, and margin trading on the Bitget exchange, as well as income from swaps, futures, and NFT trading on the Bitget Wallet.

The buyback and burn process will be finalized at the beginning of the subsequent quarter, and following each buyback, the acquired BGB tokens will be destroyed by sending them to a burn address.

The exchange has also promised to publish the exact amount burned and provide on-chain records after each burn event.

“This initial burn, with a substantial contribution from the core team's holdings, is an example of our belief in attaining success with the interests of our community," said Gracy Chen, CEO at Bitget, in a prepared statement.

"With the reduction in supply; BGB signifies the foundation of a stronger and more resilient ecosystem that benefits all stakeholders.”

Bitget, which was founded in 2018 and is now valued at $2.4 billion, has seen rapid growth in recent years.

The exchange is known for its innovative trading features, such as copy trading, which allows users to automatically follow the trades of more experienced traders.

Bitget also operates a multi-chain crypto wallet called Bitget Wallet, which offers an NFT marketplace, DApp browser, and other Web3 services.