Bitget Unveils Tokenomics Update for BGB Token

Cryptocurrency exchange Bitget has announced significant updates to its Bitget Token (BGB) whitepaper, introducing new changes to its tokenomics. The updates aim to increase transparency, reduce the overall BGB supply, and promote the token’s usage within the Bitget ecosystem.

BGB Token Burn and Quarterly Repurchases

Bitget will burn 800 million BGB tokens held by the core team, representing 40% of the total token supply. This burn will reduce the overall BGB supply to 1.2 billion tokens, with 100% of the remaining tokens in circulation. The company plans to release on-chain records of the burn, ensuring transparency and accountability.

Following the initial burn, Bitget has committed to burning BGB every quarter by destroying 20% of its profits, which come from trading fees across Bitget’s services. The repurchased tokens will be sent to a burn address, and the exchange will share the details of the burn after each quarterly event.

Market Reaction and Tokenomics Implications

Amid the news, BGB’s price soared 23% to $8.36, bringing the token’s market capitalization to $11.7 billion. The update is expected to have a positive impact on the token’s price and adoption, as it increases transparency and reduces the overall supply.

Integration with Bitget Wallet and Off-Chain Payments

The update comes a day after Bitget announced that it will merge its Bitget Wallet Token with BGB to create one ecosystem token for both the Bitget exchange and Bitget Wallet. Starting in 2025, the combined token will expand into off-chain payfi scenarios, allowing payments in places like restaurants, travel, fuel, and shopping.

In addition, BGB will become the primary token for multi-chain gas fee payments via its GetGase feature, set to begin in January 2025. This will further increase the token’s utility and adoption within the Bitget ecosystem.

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Bitget’s tokenomics update is a significant step towards increasing transparency and promoting the adoption of its BGB token. The quarterly repurchases and burns will help reduce the overall supply, while the integration with Bitget Wallet and off-chain payments will increase the token’s utility.

Key Takeaways:

  • Bitget will burn 800 million BGB tokens held by the core team, reducing the overall supply to 1.2 billion tokens.
  • The company will burn 20% of its profits every quarter, which come from trading fees across Bitget’s services.
  • BGB will become the primary token for multi-chain gas fee payments via its GetGase feature, set to begin in January 2025.
  • The combined token will expand into off-chain payfi scenarios, allowing payments in various places.
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