Cryptocurrency platform Bitget torches 220 million BGB, equating to a staggering 1.09 billion dollars, while simultaneously securing further reserves.
In a significant development, the Binance Coin (BGB) is undergoing a transformation within the Morph network. Every transaction on Morph will now require BGB, and holders will use it to participate in governance votes. This new role positions BGB as the central gas and governance token in Morph's ecosystem.
The Morph Foundation, the governing body of the network, now controls the BGB treasury. This control will be instrumental in funding liquidity, ecosystem growth, and education. The foundation has also committed to linking future token burn events directly to network activity.
Recently, an additional 220 million BGB tokens were locked in a new wallet, scheduled for a 2% monthly release. This move, along with the quarterly token burns based on trading fees, is aimed at reducing the total BGB supply down to 100 million. The burned tokens have been removed from circulation permanently.
The token burn mechanism in BGB is tightly tied to Morph's usage. The surge in BGB trading volume and market reaction indicate that investors are treating it differently. The price of BGB jumped nearly 14 percent in 24 hours, reaching 5.28 dollars, and trading volume spiked by 307 percent.
If Morph successfully drives adoption of its network, demand for BGB could grow while supply shrinks. This mix of growing demand and shrinking supply, along with active governance, could potentially benefit BGB's price in the long term.
It's worth noting that Tron occasionally burns tokens based on community votes or network milestones, and Ethereum's EIP-1559 model automatically burns a portion of every transaction fee. However, the specifics of a nonprofit organisation controlling the BGB treasury or the connection between governance influence and BGB are not yet clear.
Every holder of BGB now plays a direct role in shaping Morph's ecosystem's future. The BGB token burn, shrinking total supply, and new role as a gas and governance token have positioned BGB as central to Morph's ecosystem, making it an exciting prospect for investors and users alike.
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