Bitget, the cryptocurrency exchange with operations in the UAE, announced successfully completing the initial burn of its native Bitget Token (BGB).
The burn will reduce the total BGB supply by 40 per cent, the exchange said.
The strategic move involved burning 800m BGB tokens, effectively decreasing the total supply from 2bn to 1.2bn tokens.
Bitget cryptocurrency
The burn process was executed by transferring the tokens to a designated burn address, ensuring their permanent removal from circulation.
The burned tokens included 19 per cent originated from holdings by the core team, while the remaining 21 per cent comprised tokens from both circulating supply and additional core team reserves.
This action reflects Bitget’s strategic approach to enhancing the value and scarcity of BGB, aligning with industry practices aimed at benefiting token holders, the company said in a media release.
Bitget has also outlined a quarterly BGB burn mechanism set to commence in 2025.
Under this plan, 20 per cent of quarterly profits from exchange and wallet operations will be allocated to repurchase and burn BGB tokens.
“This initial burn, with a substantial contribution from the core team’s holdings, is an example of our belief in attaining success with the interests of our community,” said Gracy Chen, CEO at Bitget.
“With the reduction in supply, BGB signifies the foundation of a stronger and more resilient ecosystem that benefits all stakeholders,” she added.
The buyback and burn process will occur quarterly, typically finalised at the beginning of the subsequent quarter.
Following each buyback, the acquired BGB tokens will be destroyed by sending them to a burn address.
By systematically reducing the token supply, Bitget aims to create a more robust and sustainable environment for its users and stakeholders.