BGB: What If a 10% Annual Burn Is the Real Engine of Its Value?

in #bitget29 days ago

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Fire, but make it strategic
In the crypto world, some tokens inflate endlessly… while others burn to shine. Token burning is like spring cleaning for a project’s economy — the less supply there is, the more valuable each unit can become.

At Bitget, the message is loud and clear: burning isn’t a marketing gimmick, it’s a core economic mechanism. And the numbers speak volumes: 30 million BGB burned in Q1 2025 alone. At an average price of $4.3, that’s $129 million worth of tokens permanently removed from circulation.

10% of the total supply per year? Yes, seriously
At this current pace, we’re talking about 120 million tokens burned per year — that’s 10% of the total supply disappearing annually. This isn’t some fantasy, it’s a very real and deliberate strategy.

And here’s the kicker: very few tokens on the market have such an aggressive burn policy. Most play it safe with symbolic burn rates. Bitget, on the other hand, is going all-in on long-term deflation — a bold move that echoes some of the most successful economic models in crypto.

Why it matters more than you think
If you believe in fundamental economics, scarcity creates value. It’s what made Bitcoin skyrocket with every halving, and what helped BNB soar as Binance consistently burned supply.

BGB is following a similar path — except with one huge advantage: it’s still early. Its on-chain use cases (DeFi, payments, utilities) are just beginning to expand. That means we could be seeing a perfect storm: growing utility + decreasing supply, two powerful engines for sustainable price growth.

The deeper strategy behind the burn
Burning 10% a year isn’t just impressive on paper — it’s a long-term bet. It’s about creating economic pressure and preparing for future demand. It’s also a way for the exchange to align its incentives with the token holders.

And if the market starts to fully understand this deflationary dynamic, current valuations of BGB might start to look laughably cheap. Burning doesn't guarantee moonshots, but it sets the stage for value to emerge — especially for those playing the long game.