30 million coins have been destroyed. Can BGB replicate the valuation miracle of BNB?

Original author: WhiteRunner

In the first quarter of 2025, Bitget announced the destruction of 30 million BGB, a platform currency. The destruction amount accounted for 2.5% of the total supply, triggering a new round of market attention to the deflation mechanism of platform currencies.

This ratio is relatively high among mainstream platform coins, and it also indicates that Bitget is accelerating the structural deflation path of BGB. This article will start from the rhythm and causes of this round of destruction, combine the platform deflation mechanism design with the actual use scenarios of BGB, and interpret the supply and demand logic behind it.

1. 30 million tokens destroyed: faster pace and greater intensity

According to Bitgets official announcement, the total amount of BGB destroyed this quarter is 30 million, accounting for 2.5% of the current total supply of 1.2 billion. This destruction ratio is significantly higher than that of most platform coins (taking BNB as an example, its single destruction ratio in the past was about 1%).

According to the Bitget announcement, this destruction is based on the statistics of Gas fees generated by on-chain products in the first quarter, and is carried out in conjunction with the established quarterly deflation plan. All destruction transactions have been uploaded to the chain for user verification.

Previously, Bitget destroyed the teams 800 million holdings, locking the current total supply of BGB at 1.2 billion, and has achieved 100% full circulation. This means that the platform no longer retains any reserved tokens or subsequent release space, further strengthening the markets judgment basis on scarcity.

2. Mechanism design behind the destruction rhythm

Bitget’s operation on BGB deflation is not a single-point “occasional destruction”, but starting from 2025, it has entered a mechanism-driven, fixed-cycle destruction phase.

Currently, BGB destruction mainly comes from two sources: fees generated by on-chain use and fixed destruction amount, which together constitute the basis for quarterly destruction.

Bitget officially disclosed that starting from 2025, the total amount of Gas fees generated by users will be counted every quarter based on the actual on-chain activities of the Bitget Wallet ecosystem, and the destruction amount will be calculated based on this.

The basic logic is: the higher the usage on the chain → the more popular BGB is → the more BGB is destroyed

This means that the destruction is linked to user behavior and the actual on-chain activity of the platform, which has a certain degree of flexibility. The platform will publish the destruction results synchronously after the end of each quarter, and the destruction transactions will be put on the chain, and users can verify them on the block browser.

In addition, Bitget also destroys a fixed amount. This part is equivalent to the platforms active investment to support deflation and is regarded as a way to manage the value of the platform currency.

At present, this mechanism is similar to the destruction model of old platform coins such as BNB and OKB, but the destruction of BGB does not rely on a single business line, has a wider coverage, and is more intensive in rhythm (once a quarter, rather than half a year or irregularly).

Overall, the core features of the BGB destruction mechanism are:

• Stable source: based on actual on-chain usage;

• Fixed cycle: Executed every quarter to improve the rhythm expectations;

• Open and transparent: Destruction results can be checked and operations can be recorded on the chain;

Linked to platform growth: The mechanism itself is not separated from business data, avoiding idle deflation.

The design of these mechanisms means that BGBs supply control no longer relies solely on platform commitments, but is embedded in products and user behaviors, and has a certain degree of self-driving nature.

3. Actual supply has tightened and the path is clear

In addition to entering the quarterly destruction mechanism, Bitget also performed a key action at the end of 2024 – a one-time destruction of 800 million BGB held by the team. This decision directly reduced the total supply of BGB from the original 2 billion to 1.2 billion, and clearly announced that BGB has now achieved 100% full circulation, and there is no longer any locked or reserved portion.

The impact of this operation is multifaceted:

1. Completely eliminate potential release pressure

According to previous market expectations, the 800 million BGBs originally reserved by the Bitget team will be gradually unlocked in multiple batches and across years. This batch originally constituted a long-term potential supply variable and may also affect market expectations in the future.

Now, this part of the chips has been completely destroyed at one time and will not enter the circulation market in the future. This practice of clearing in advance is relatively rare in platform currency projects, and it eliminates the unresolved uncertainty for medium and long-term holders.

2. Total amount capped and structure transparent

After the destruction, the total amount of BGB is capped at 1.2 billion, and all of them are in circulation. Compared with some platform coins that still retain team shares, foundation locks or reserved proportions, BGBs current supply structure is clearer and easier to evaluate.

In other words, the BGB market circulation situation that users see now is the actual supply and demand situation, and there is no risk of sudden large-scale release of tokens in the future.

3. Respond to users’ concerns about “platform control capabilities”

Against the backdrop of क्रिप्टोcurrency users generally concerned about “whether the platform controls the market” and “whether there are large investors holding positions behind the scenes”, the Bitget team chose to completely abandon their chips, which is equivalent to sending a signal: the platform will rely on mechanisms rather than human control to support the coin price structure.

This move has also attracted industry attention. Bitgets move is equivalent to actively giving up the platforms control space and allowing BGB to return to a completely market-oriented logic, and it is considered a signal that the platform currency governance structure is moving towards transparency. For many observers, this strategy of team withdrawal and mechanism takeover is also more in line with the current crypto markets expectations for decentralized transparency.

4. In addition to deflation, usage scenarios are also expanding

Unlike some platform coins that simply rely on destruction to drive deflation, BGBs deflation logic also includes a lock-up + use two-way binding mechanism: when users use BGB in platform products, it means automatically triggering lock-up or staking behavior, thereby continuously reducing the circulating supply.

These designs form an internal cycle: user use → BGB lock-up → market circulation reduction → deflation expectations increase. At present, this cycle is mainly divided into two dimensions: platform product participation and on-chain equity binding.

1. Platform participation products: share dividends and earn income

As the core asset of the Bitget platform, BGB has been deeply integrated into a variety of products, including but not limited to:

• Launchpad: Users stake BGB to obtain the qualification to participate in the purchase of new projects;

• Launchpool: Staking BGB can get new coin airdrops, which is a common channel for cold start of popular projects;

• PoolX: Users stake BGB to participate in a multi-asset portfolio income strategy, combining short-term high returns with on-chain hot asset distribution;

• Financial Management Zone: The income product portfolio designed around BGB, combined with hot assets or structured strategies, further enhances BGBs capital utilization rate.

The common features of these products are that users will be locked up as soon as they participate, and most products require limited pledge or advance subscription. The impact on the locked-up volume of BGB is particularly obvious when market sentiment is active.

2. On-chain ecological layout: extending from CeFi to DeFi

The use of BGB is also gradually expanding to the on-chain ecosystem, mainly through Bitget Wallet and Morph Chain. The current application paths include but are not limited to:

• BGB staking: Users can directly stake BGB on the Morph chain to obtain an annualized fixed income of approximately 5%, which can be used for subsequent ecological activities participation or incentive distribution;

• Gas payment: BGB has been supported for Bitget Wallet multi-chain GAS payment, which reduces the threshold for users to cross-chain and exchange coins;

• Future on-chain usage planning: Bitget said that in the future it will consider using BGB for on-chain governance, identity binding, and priority rights acquisition (such as NFT casting, DAO voting, etc.). These uses will further broaden the functional boundaries of BGB in Web3 scenarios.

This part means: BGB is not only an exchange platform currency, but is also becoming a universal token in the Bitget chain ecosystem, gradually connecting centralized financial products and chain-native financial behaviors.

Overall, the use path of BGB covers multiple scenarios from CeFi financial products to DeFi chain interactions. Compared with pure destruction deflation, this use-based deflation path is more sustainable, has stronger user participation, and is easier to form a stable market demand.

5. The pace of deflation is clear and the path of use is taking shape

In general, BGB’s current deflation logic is no longer an isolated destruction behavior, but has formed a complete path of mechanism-driven + application binding + predictable rhythm.

This path includes at least three levels:

1. The deflation mechanism is clear and normalized

Destruction is performed once a quarter, and the destruction amount is linked to the on-chain usage and platform profits, which is adaptive;

The core teams holdings have been completely destroyed by the end of 2024. The current total amount is capped at 1.2 billion, and the supply side has been closed;

All destruction records are synchronized on the chain, the data can be checked and the rules can be verified, which helps users build long-term trust.

2. Application scenarios gradually expand to form an internal cycle

BGB can participate in various profit-generating operations such as Launch series products, financial management, and strategy combinations within the platform;

It can be used for staking and gas payment on the chain, and has the scalability of future governance, NFT, identity binding, etc.

The users usage behavior naturally constitutes a locking action, which indirectly drives the reduction of market circulation.

3. The value logic is closer to practical platform assets

In the past, many platform coins were questioned for relying only on destruction and having no practical use, but BGBs current path is more inclined to a practical asset model: destruction controls scarcity → use builds demand → users can get rewards.

BGB has evolved from the initial fee utility coin to one of the core assets in the Bitget ecosystem. This logic not only allows it to have continuous circulation at the CeFi platform level, but also begins to play a substantial role in scenarios such as on-chain wallets, staking incentives, and project participation.

Epilogue: Price is not just an expectation, but a realization of the structure

Review of BGBs price performance in the past three years:

• 2022 High: $0.2387

• 2023 High: $0.6950

• All-time high in 2024: $8.50

Behind each round of leap is the realization of the platform strategy: 2022 is the starting point of the exchanges growth, 2023 is the expansion of the product system, and 2024 is the launch of the deflation mechanism and the destruction of team chips.

So, what new price range will BGB have the opportunity to enter in 2025?

Referring to the current platform size, BGB market value position and price structure, the reasonable range may be between $15-$20 to find the interim top, and some radical models even give an upside of $30.

This is not a fantasy, but a structural valuation repricing based on the continuous growth of platform transaction scale, the steady progress of quarterly destruction rhythm, and the continuous expansion of on-chain landing scenarios.

In other words, the logic behind BGBs rise has shifted from speculating on expectations to waiting for fulfillment.

For coin holders, the core question of judging its potential has changed from how much it can rise to whether it has embarked on a structural growth path. From the current mechanism to the ecology, and then to the trading activity, BGB does have the characteristics of an asset with downward support and upward anchor.

Among all assets, those that are truly worthy of long-term attention are always those that have established a value support framework but whose prices have not yet been fully priced.

At this moment, BGB is exactly at that critical point.

This article is sourced from the internet: 30 million coins have been destroyed. Can BGB replicate the valuation miracle of BNB?

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