BGB has been setting all-time highs in the last week.
In the last year, the price of BGB rose more than 1,000%
Bitcoin (BTC) and cryptocurrency exchange Bitget announced a token burning plan for its native digital currency, BGB.
The project’s white paper states that starting in 2025, the platform will implement a buyback and burn mechanism that will initially destroy 800 million BGB tokens.
The amount to be burned is equivalent to 40% of the supply total of that cryptocurrency, which is 2,000 million tokens. The burning of the 800 million BGB is valued at about $6.8 billion, based on the current market price.
This burning will be completed early next year, and on-chain records will be made available to the public, according to the exchange. Subsequentlytotal BGB supply will decrease to 1.2 billionwith all tokens completely in circulation.
Following the initial burn, Bitget will launch a quarterly BGB token burning mechanism, which will take place at the beginning of each quarter.
As indicated, Bitget will allocate 20% of its quarterly profits from exchange operations to buy back and burn BGB. These earnings include transaction fees from spot, futures, and margin trading on the Bitget exchange, as well as revenue from swaps, futures, and NFT trading on the Bitget Wallet.
Bitget clarifies that they will destroy any BGB tokens they buy back by sending them to a burn address and will publish the exact amount and records on-chain after they are finished.
This announcement occurs in a context where BGB has seen a significant increase in its value. As reported by CriptoNoticias, the cryptocurrency has risen more than 1,000% in a year and in the last week it has broken all-time highs.
On December 27, this outlet reported that BGB had skyrocketed 100% in less than seven days, becoming the digital asset with the highest rise of the week.
The increase in the value of BGB responded to the fact that Bitget made BGB the only token in the ecosystem, after merging the BWB token, native to the Bitget wallet, with BGB. This merger represents a strategic step for Bitget to unify its ecosystem and increase BGB’s utility and liquidity.
At the close of this report, BGB is trading at USD 7.50, falling 10.2% in a matter of one day, after marking an ATH of more than $8.4. This price adjustment follows a period of intense volatility and speculation around burning actions and token merging announced by Bitget.
Bitget’s move towards a token burning policy seeks to not only reduce the circulating supply of BGB to increase its value, but also strengthen investor confidence in the Bitget ecosystemin a market where supply reduction strategies are seen as mechanisms for deflation and, therefore, for the potential increase in long-term value.
