Bitget has announced significant changes to its native token, BGB, following a comprehensive update to its whitepaper.
The changes include a large-scale token burn and enhanced tokenomics to boost utility and transparency.
In a statement released on December 27, the crypto exchange revealed plans to burn 800 million BGB tokens previously held by its core team. This move will eliminate 40% of the total token supply, reducing the circulating supply to 1.2 billion tokens. It confirmed that all remaining tokens will now be in circulation, with on-chain records of the burn to be made public.
Bitget also committed to quarterly burns, pledging to destroy 20% of its profits derived from trading fees. It noted that repurchased tokens will be sent to a burn address, and detailed reports will be shared after each burn to maintain transparency.
Following the announcement, BGB’s value surged by 23%, reaching $8.36 and pushing its market capitalization to $11.7 billion.
This update aligns with Bitget’s broader plans. On December 26 2024, the exchange announced the merger of its Bitget Wallet Token( with BGB, consolidating the tokens into a single ecosystem asset. Starting in 2025, the exchange claimed that the unified token’s use cases would expand to include off-chain payment scenarios. Token holders would be able to make transactions in areas such as dining, travel, fuel, and shopping. The crypto exchange stated it aims to position the token as a bridge between web3 services and everyday consumption, offering a seamless one-stop payment solution.
The announcement followed Bitget’s earlier commitment to reimburse users affected by a sudden drop in BGB’s value earlier in October 2024. On October 7, at approximately 3:45 a.m., the token’s value plummeted from $1.14 to $0.79 within minutes, sparking alarm among users. Although the price quickly rebounded to $1.04 after ten minutes, the cause of the sharp decline remains unclear.
Bitget apologized for the incident and reimbursed affected users within 72 hours. The exchange has since emphasized its commitment to transparency and user trust in its operations.
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