BGSC Burn Scale Doubles: Project Strategy Behind $15.5 Million Token Burn

The BGSC token team burned 13 billion tokens on January 5th, valued at $15.5 million. This is the project’s second large-scale burn since launch, with the scale increasing by 142% compared to the $6.4 million burn two months ago. As a new project launched in December 2024, BGSC manages its token supply through regular burns, a move worth paying attention to.

Record-breaking Burn Scale, Token Management Enters an Accelerated Phase

This burn was one of BGSC’s regular operations, but the scale was significantly larger than expected. According to onchainschool.pro monitoring data, the 13 billion tokens burned are worth approximately $15.5 million at current prices. In comparison, the previous burn occurred two months ago, with tokens valued at only $6.4 million.

Comparison of the two burns

This comparison highlights two points: first, the BGSC team is increasing its burn efforts; second, the token price has risen over the past two months, making the same quantity of tokens more valuable.

Impact on Supply

BGSC’s current circulating supply is 11,563,499,503 tokens, with a total supply of 29,441,428,003 tokens, and a circulation rate of 39.28%. The 13 billion tokens burned represent 4.4% of the total supply, which is a significant proportion. If burns continue, the reduction in circulating supply could have a long-term impact on token scarcity.

Token Economics Experiment of a New Project

BGSC only went live for trading on December 26, 2024, about 10 days ago. Performing two large-scale burns within such a short period demonstrates the project’s emphasis on token economic management. This approach is uncommon for new projects and usually indicates an attempt by the project team to maintain price stability and market enthusiasm through active supply contraction.

Possible Objectives of the Burn

Based on industry practices, token burns by project teams are usually motivated by the following considerations:

• Reduce circulating supply to increase token scarcity
• Offset selling pressure from early investors and the community
• Signal the project’s long-term commitment to the market
• Create imagination space for future market activities

Market Performance and the Connection to Burning

Data shows that BGSC’s market performance has been relatively active before and after the burn. The current price is $0.001513, up 24.05% in the past 24 hours and 49.61% over the past 7 days. While this cannot be directly attributed to the burn, it indicates increasing market attention on BGSC.

The 24-hour trading volume is $3.03 million, up 195.98% from the previous day, suggesting a significant increase in market participation. However, it is worth noting that BGSC’s market cap is only $17.5 million, ranking 805th in the crypto market, making it a relatively small project.

Summary

The BGSC team burned tokens worth $15.5 million, setting a new record. This reflects the project’s proactive attitude toward token economic management through regular burns. For a project only 10 days old, this approach demonstrates professionalism and sends a positive signal to the market. Future observations should focus on whether the burn operations can be sustained and how this strategy will impact the project’s long-term development. Investors should monitor whether the frequency and scale of burns can be maintained and whether this truly creates long-term value for the project.