Bitget plans to burn $120 million worth of BGB under new quarterly mechanism

Bitget is expected to burn more than 30 million BGB for the first quarterly burn of 2025. The Crypto Exchange recently updated its burning mechanism according to the use of the chain.

According to a press release sent to Crypto.News on April 9, the crypto exchange will use a new burning mechanism for its native token which takes into account more its use on the chain. The new mechanism uses a model based on public services to calculate the quantity of Bitget Tokens (Bgb) to burn.

The burn update formula directly connects the volumes of quarterly burning to the amount of the BGB paid to the chain gas fees via the company’s Getgas accounts. As part of the new mechanism of T1 2025, the platform added around 6,943 BGB to its Getgas accounts.

Consequently, Bitget is preparing to burn a total of 30 million BGB for this quarter, which is equal to more than $ 120 million on the basis of current market prices. This means that 30 million BGB will be withdrawn from its total token diet, potentially increasing the value of the remaining token.

At the time of the press, BGB has dropped by almost 2.5% in the last 24 hours. It is currently negotiating at $ 4.07, despite an infringement of $ 4.20 a day before. The token is even more than 50% below its $ 8.45 summit, which was recorded in late December 2024.

The BGB supply in circulation amounts to 1.2 billion BGB with a $ 278 million negotiation volume. The token trading volume experienced a 13% increase compared to the previous negotiation day. Meanwhile, the token market capitalization is currently estimated at nearly $ 5 billion.

Bitget CEO Gracy Chen said that a more sustainable burning mechanism was an expected change, since the BGB is expanding its role in various chain ecosystems.

“By linking its burning mechanism to a real utility on the chain, the quarterly amount of BGB can evolve with real use. This update encourages adoption and allows a transparent and sustainable tokenomic,” said Chen in his declaration.

In January 2025, the exchange of crypto burnt 800 million BGB held by the internal team, which represented 40% of the total offer. This burn reduced the circulating offer of the 2 billion BGB token to 1.2 billion BGB.