Bitget Successfully Completes Initial Burn of Native Bitget Token (BGB), Reducing Total Supply by 40%
Bitget, a prominent player in the cryptocurrency exchange and Web3 space, has achieved a significant milestone by executing the initial burn of its native Bitget Token (BGB), resulting in a remarkable 40% reduction in total supply. This tactical maneuver saw the burning of 800 million BGB tokens, reducing the total supply from 2 billion to 1.2 billion tokens. The burn process involved sending the tokens to a specific burn address, effectively taking them out of circulation for good.
The allocation of the burned tokens breaks down like this: 19% came from the core teams holdings, while the other 21% consisted of tokens sourced from the circulating supply and extra reserves held by the core team. This move showcases Bitgets tactical strategy to boost the value and scarcity of BGB, which aligns with industry trends designed to benefit token holders.
As we gaze into the future, Bitget has unveiled an exciting quarterly BGB burn mechanism set to kick off in 2025. According to this strategy, 20% of quarterly profits generated from exchange and wallet activities will be directed towards repurchasing and burning BGB tokens. The revenue streams for this mechanism include transaction fees generated from spot, futures, and margin trading on the Bitget exchange, alongside earnings from swaps, futures, and NFT trading within the Bitget Wallet.
This initial burn, with a substantial contribution from the core teams holdings, is an example of our belief in attaining success with the interests of our community. With the reduction in supply; BGB signifies the foundation of a stronger and more resilient ecosystem that benefits all stakeholders, said Gracy Chen, CEO at Bitget.
The buyback and burn mechanism is set to occur every quarter, usually wrapped up at the start of the following quarter. After each buyback, the BGB tokens acquired will be permanently removed from circulation by directing them to a burn address. Bitget demonstrates its commitment to transparency by disclosing the precise amount burned and offering on-chain records following each burn event.
This initiative underscores Bitgets commitment to amplifying the utility and value of BGB in its ecosystem. Through strategically reducing the token supply, Bitget is positioning itself to foster a more resilient and sustainable ecosystem for its users and stakeholders.
Text source: ZyCrypto
