Bitget Whitepaper: Core Team to Burn 800M BGB Tokens, Making Up 40% of Supply

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Tanzeel Akhtar

Journalist

Tanzeel Akhtar

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Tanzeel Akhtar has been covering the cryptocurrency and blockchain sector since 2015. She has written for the Wall Street Journal, Bloomberg, CoinDesk, Bitcoin Magazine and Bitcoin.com.

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December 27, 2024 08:15 EST

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Cryptocurrency exchange Bitget has published a new whitepaper for its native token, Bitget Token (BGB), detailing plans to burn 800 million BGB tokens, worth over $5 billion at current market value.

The core Bitget team will start with burning BGB – 40% of the total supply – reducing the circulating supply to 1.2 billion.

Burning tokens is the process of removing tokens from circulation by sending them to an inaccessible wallet address, often called a “burn address.” This reduces the total supply of the token.

Starting in 2025, Bitget said it will implement quarterly burns by allocating 20% of profits from its exchange and wallet operations, including revenues from spot, futures, and NFT transactions, to buy back and burn BGB.

Bitget Token BGB Merges With Bitget Wallet Token BWB

On Thursday, the exchange said it will merge BGB with its Bitget Wallet Token BWB. This makes BGB the unified token for Bitget’s centralized and decentralized system.

Currently, BGB holders get benefits such as trading fee discounts, VIP privileges, and access to Launchpool token farming. Bitget plans to expand BGB’s use in on-chain systems making it a key asset for staking, liquidity provision, and airdrop eligibility.

BGB will power Bitget Wallet services, such as multi-chain gas fee payments, while integrating into everyday PayFi scenarios.

Binance Leading Centralized Exchange

In the whitepaper, Bitget highlights it has rapidly emerged as the fastest-growing centralized exchange (CEX). Cryptocurrency exchange Binance continues to dominate the market, according to CCData.

Binance Coin BNB is the native token for Binance’s blockchain. BNB has been made available on Revolut, Europe’s largest unicorn company.

“CEXs are the backbone of crypto’s growth towards mass adoption,” said Gracy Chen, CEO of Bitget, in a press release shared with CryptoNews.

“Our $5 billion token burn reflects our commitment to positioning BGB as a powerful medium of value exchange. By expanding its utility on-chain and integrating it into everyday applications, we’re making PayFi a reality for the masses.”

BGB Token Price Action

The BGB token has shown impressive performance in 2024, with its market capitalization increasing over 1000% in the past year and more than 100-fold since its launch.

On Friday, BGB is trading at $8.36, up 11% in 24 hours, according to CryptoNews data.