Bitget to Burn $120M of BGB After Deflation Mechanism Update
Date: 2025-04-15 Author: Oliver Abernathy Categories: BUSINESS
Cryptocurrency exchange Bitget has announced the destruction of over 30 million BGB tokens worth approximately $120 million. This was made possible after upgrading its quarterly burn mechanism to take into account on-chain usage of the token.
Under the new terms, the amount of tokens to be burned will directly depend on how actively BGB is used in the ecosystem, in particular, to pay fees through GetGas, Bitget Wallet’s Web3 wallet solution. GetGas allows users to pay for transactions on various networks, including Ethereum, Solana, BNB Chain, Base, Morph, and TRON, using BGB, ETH, USDT, USDC, and other assets.
In Q1 2025, users paid 6943.63 BGB in fees, and based on this, Bitget decided to burn 30,006,905 tokens. According to the exchange's CEO Gracie Chen, linking the burning mechanism to real on-chain activity makes the token economy more sustainable and encourages its further development.
The company intends to continue the burning procedure quarterly until only 100 million BGB remain in circulation. After the completion of the current stage, a report with confirmation on the blockchain will be published.
The BGB token itself was issued on the Ethereum network in July 2021 in the amount of 2 billion units. By the end of 2024, Bitget initiated a large-scale reduction in the emission, destroying 40% of the total number, and launched a regular buyback program. The exchange allocates 20% of profits from its main areas for these purposes: trading on spot, futures and through the Bitget Wallet.
Interestingly, starting from a price of 0.0585 USDT, BGB reached a record 8.5 USDT in December 2024 - an increase of more than 100 times. Now, according to CoinMarketCap, the token is valued at $ 4.28 and ranks 24th by market capitalization among cryptocurrencies.
BGB plays a key role in the Bitget infrastructure. It is used in both centralized and decentralized products of the platform. Previously, Bitget Wallet had its own token BWB, but at the end of 2024 it was merged with BGB, thereby strengthening the significance of the latter.
The benefits of owning BGB include participation in token sales on Launchpad, discounts on fees up to 20%, the ability to apply for VIP status, as well as participation in on-chain activities and airdrops. In the future, the token will be integrated with Bitget Pay, Bitget Card and other services, providing users with additional bonuses and cashback.
You can buy BGB on the Bitget platform itself, in its application, as well as on other exchanges, including MEXC and Bitfinex.
