Bitget is set to burn over 30 million BGB in its first quarterly burn of 2025, marking a significant update to its tokenomics.
According to the press release on April 9, the crypto exchange announced that it has revamped its burn mechanism to better align with on-chain activity. The new system adopts a utility-based model to determine the amount of Bitget Tokens (BGB) to burn, ensuring a more accurate and responsive approach to token reduction.
This updated burn formula links the volume of quarterly burns to the amount of BGB used for on-chain gas fees through Bitget’s GetGas accounts. For the first quarter of 2025, approximately 6,943 BGB was added to the GetGas accounts as part of the new mechanism, directly reflecting the platform’s real usage.
As a result of this refined process, Bitget plans to burn a total of 30 million BGB this quarter, which is valued at over $120 million at current market prices. This move will reduce the circulating supply of BGB, potentially driving up the value of the remaining tokens.
At the time of writing, BGB has seen a nearly 2.9% decline in the past 24 hours, currently trading at $4.07, after briefly peaking at $4.20 the previous day. Despite the slight drop, the token’s market cap remains strong, with a circulating supply of 1.2 billion BGB and a 24-hour trading volume of $278 million. This marks a 13% increase in trading volume compared to the day before, with the market cap hovering at around $5 billion according to the press release.
Gracy Chen, CEO of Bitget, emphasized that the introduction of a more sustainable burn mechanism was an expected and necessary development, especially as BGB continues to expand its role across various on-chain ecosystems. She highlighted that by linking the burn mechanism to actual on-chain utility, BGB’s quarterly burn volume can evolve with its usage, ensuring both transparency and sustainability in its tokenomics.
In addition to the burn update, Bitget has also made strides in expanding its regulatory presence, securing full licensing in El Salvador. The cryptocurrency exchange has officially received a digital asset service provider license from El Salvador’s National Commission of Digital Assets, further solidifying its position in the global crypto market.
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