Bitget, the cryptocurrency exchange, and Web3 company, has released a new whitepaper for its native token, Bitget Token (BGB).
The update introduces an initiative to burn 800 million BGB tokens—valued at over $5 billion based on current market prices—alongside plans to “expand the token’s utility.”
This move shows Bitget’s commitment to enforcing a “deflationary supply model for BGB, accelerating its utility.” Although somewhat similar models have been introduced by other service providers, there is no guarantee that such a model will enable sustainable ecosystem growth. Moreover, the digital token space remains a highly speculative part of the digital assets and blockchain industry with not much meaningful value/returns to date, especially for the typical or inexperienced trader.
The whitepaper introduces a token burn plan, starting with the immediate and permanent burn of “800 million BGB – 40% of the total supply – reducing the circulating supply to 1.2 billion.”
Beginning in 2025, Bitget will initiate quarterly burns by allocating 20% of profits from Bitget Exchange and Bitget Wallet, including “revenues from spot, futures, and NFT transactions, to buy back and burn BGB.”
All burn activities will be recorded on-chain, “ensuring transparency and accountability to the community.”
Bitget announced the merger of Bitget Token (BGB) and Bitget Wallet Token (BWB). Following this merger, BGB will serve as the “unified token for Bitget’s centralized and decentralized ecosystems.”
Currently, BGB offers benefits to its holders, including fee discounts, VIP privileges, and access to “token farming through Launchpool.”
Looking ahead, Bitget plans to expand BGB’s utility within on-chain ecosystems, positioning it as “a core asset for staking, liquidity provision, and airdrop eligibility.”
Additionally, BGB will power Bitget Wallet services, such as multi-chain gas fee payments, while extending its “use cases to everyday PayFi scenarios.”
In the landscape of crypto exchanges, Bitget claims that it has distinguished itself as one of the “fastest-growing” centralized exchanges (CEX) in recent years.
This achievement is possible thanks to a team of 1,600 professionals across 60+ countries, an ecosystem encompassing fiat, spot, margin, and futures trading, and technology “ensuring a seamless trading experience.”
Bitget strengthens user confidence with advanced security measures, including a $600M Protection Fund and “a monthly updated Proof-of-Reserve report.”
Its compliance strategy, and acquisition of licenses in multiple jurisdictions, strengthens its position a CEX.
Gracy Chen, CEO at Bitget said:
“CEXs are the backbone of crypto’s growth towards mass adoption. Bitget’s mission of fuelling the next wave of innovation will unfold in the coming year. Our decision to burn $5 billion worth of BGB aligns with our plans of making it a powerful medium of transacting value. Our next phase will extend BGB’s utility on-chain, integrating it into more Dapps and bringing it to the masses, making BGB available to all, making PayFi a part of everyday life.”
BGB has shown solid performance in 2024, with its market capitalization increasing by over “1000% in the past year and over 100-fold since its inception.”
This growth is backed by a record of the token’s use cases and the success of Bitget’s innovative ecosystem.
The release of the updated BGB whitepaper marks an “important moment in Bitget’s journey.”
By reducing supply, enhancing utility, and expanding real-world applications, BGB is bound to strengthen functionalities and products in the Bitget ecosystem driving “sustainable growth and long-term value for holders.”
Established in 2018, Bitget is the world’s cryptocurrency exchange and Web3 company.
Serving 45 million users in 150+ countries and regions, Bitget is committed to helping users trade smarter with its copy trading feature and other trading solutions, while offering “real-time access to Bitcoin price, Ethereum price, and other cryptocurrency prices.”
Formerly known as BitKeep, Bitget Wallet is a multi-chain crypto wallet that offers an array of comprehensive Web3 solutions and features “including wallet functionality, token swap, NFT Marketplace, DApp browser.”