BGB, Bitget’s native utility token, continues its upward trend today after the team released an updated white paper on the asset’s burning mechanism.
For comparison, Bitget Token (BGB) is up over 20% today to hit a new all-time high of $8,500. The bullish bounce resulted in weekly and monthly gains of 102% and 421%, respectively, bucking the overall trend in the broader market.
Notably, today’s surge followed Bitget’s announcement that the company had updated its white paper specifically on the topic of asset burning. The Bitget team has introduced a mechanism that allows for an incessant, large-scale burn of the BGB token, thereby providing upward momentum to the ecosystem’s native token.
Bitget is expected to burn 40% of the total supply.
Per releaseBitget will soon burn 40% of its total supply of BGB2 billion ($6.6 billion at current market price). It is noteworthy that the core team reserved 40% of the ERC-20 token for itself during the token generation event (TGE), but would destroy it with the new development.
The burn would cause BGB’s total supply to drop to 1.2 billion, increasing the asset’s scarcity. Bitget stated that the burn event would take place at a later date and the team would provide proof of the significant on-chain milestone.
Aside from that, Bitget introduced a periodic firing mechanism. The latest addition sees the exchange use 20% of its quarterly profits to purchase and burn the BGB token.
The process would be a quarterly event where Bitget would send the specified amount in BGB to the burning address. Bitget also stated that it would notify the crypto community of the burn after each operation.
It is worth noting that the Bitget token is now…
