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- As part of a recent upgrade of its burn mechanism, Bitget will be burning over 30 million BGB, worth 120 million, in its first quarter of 2025.
- Bitget’s updated burning process links quarterly burns to BGB burned as on-chain gas fees, enhancing its significance in Web3 and practical applications.
Bitget, a Seychelles-based cryptocurrency exchange with more than 45 million users from 150+ countries and regions, has revealed that it will burn more than 30 million Bitget Tokens (BGB) in the first quarter of 2025, worth more than $120 million. This is under Bitget’s new quarterly burn mechanism, which was created to increase the value of the token by decreasing the circulating supply.
“BGB is becoming a vital bridge between centralized and decentralized ecosystems. By linking its burn mechanism to actual on-chain utility, BGB’s quarterly burn amount can evolve with real usage. This update incentivizes adoption and enables transparent and sustainable tokenomics. As BGB continues to expand its role in on-chain ecosystems, a more sustainable burn mechanism can be expected,” Gracy Chen, CEO of Bitget, explained.
Bitget’s Burn Mechanism Tied to On-Chain Utility
The new burn mechanism uses a utility-based model that directly ties the quarterly burn quantities to the amount of BGB used for on-chain gas fees through Bitget’s GetGas accounts. In Q1 2025, the GetGas accounts accumulated approximately 6,943 BGB, which led to the planned burn of 30 million BGB tokens. To enhance transparency, Bitget provides data related to the burn mechanism, including transactions and wallet addresses, to the public.
Part of Bitget’s BGB burn mechanism involves 20% of profits from the operations of the exchange and wallet being utilized towards repurchasing and burning BGB tokens. This includes transaction fees on spot, futures, margin trade, and swap income, futures income, and NFT income in the Bitget Wallet. Buybacks will be executed quarterly, with completion typically at the beginning of the next quarter.
Bitget’s token provides token holders with a range of advantages, such as discounts on fees, VIP benefits, and token farming through Launchpool. Considering this, Bitget intends to position BGB as a central part of on-chain ecosystems, a flagship asset for staking, liquidity provision, and airdrop eligibility.
This follows Bitget’s prior move in December 2024 when the company completed its very first burn of 800 million BGB tokens, hence reducing the total supply by 40% from 2 billion to 1.2 billion tokens. The initial burn included 19% of tokens from the core team’s holdings and 21% from the circulating supply and additional core team reserves.
In December, BGB attained its all-time high of $8.49.Today, BGB has gone down nearly 11% in the past week to trade at $4.08. The circulating supply of BGB is currently 1.2 billion, with a 24-hour trading volume of $273 million, marking a 14.7% increase from the previous day. Its market capitalization is valued at approximately $4.9 billion.
