BWB Valuation Part 1: A Primer On BWB Valuation

Responding To User Needs Is The Act Of Value Accrual

Let's start with two questions: why should there be a(ny) wallet token and how to determine their value?

There goes the saying: "Not your keys, not your coins", which actually highlights the origin as well as the aspiration of crypto - decentralisation. By wallets, we are talking about non-custodial wallets, a type of cryptocurrency wallet that allows users to control their own private keys, giving them sole access and management of their funds, thereby ensuring that users have ownership and responsibility for their digital assets. Imagine wallets as the entry point to the limitless Web3: they are in a pivotal position to onboard new users into the digital space and, at the same time, motivate them to do so.

By their nature, wallets already serve as the gateway to asset management and asset discovery; now comes the incentive thingy. Since cryptocurrencies are the answer to financial freedom, tapping into this barely explored territory should not only drive up user demand but also justify the need for a wallet token. Such a token, if competently designed, can guarantee streamlined access to DeFi and all earning opportunities in Web3, which, in turn, functions as a promise to diverse sources of income.

After the acquisition of BitKeep, Bitget makes it our top priority to upgrade the good ol' BitKeep to a full-stack DeFi ecosystem and platform focused on the three fundamental aspects of maximum security (coming from one of the only leading exchanges with a 100% clean history of security incidents), enhanced liquidity (through the super aggregator that gathers liquidity from multiple liquidity providers/liquidity pools across a variety of sectors from spot and derivatives DEXs, OTC markets, to Pre-markets), and mobile-native UI/UX for an unrivalled user experience. This results in the development of the Bitget Onchain Layer, whose ultimate goal is to introduce native accessibility for new narratives, assets and opportunities across Web3. The launch of Bitget Wallet's native token BWB is intended to bring in more users via the utilisation and integration of purposeful DApps for on-chain trading, the expansion of a native Bitget Wallet's meme-universe, branding, and further product RD. In short, BWB will tie up loose ends that have held back the wallet sector from capturing billions of dollars in value for so long.

Binance, And Now Bitget, Are The Only Leading CEXs With A CEX Token And A Wallet Token

Up until Bitget Wallet and its token BWB, Binance had been the only CEX to adopt a dual token system consisting of a CEX token (BNB) and a wallet token (TWT). We share the same vision with Binance about extending Bitget's foundational ecosystem on-chain, but learn from this predecessor to achieve synergies between our on-chain and off-chain services for a solid Web3 future through the dual token system of BGB (Bitget Token) and BWB (Bitget Wallet Token), whose complementary roles within the Bitget ecosystem offer unique advantages for all stakeholders.

The BGB token serves primarily on the Bitget exchange for trading fee discounts, staking, participation in token sales, and other earning benefits. This setup encourages frequent trades and engagement on our platform, thus increasing liquidity and volume. The BWB token, meanwhile, operates within the Bitget Wallet ecosystem for transaction fee payments, staking rewards, access to premium features, and involvement in wallet-specific promotions. This arrangement enhances wallet functionality, encourages wallet adoption, and boosts user engagement within the wallet ecosystem.

Integrating BGB and BWB within the single ecosystem of Bitget ensures seamless interaction between exchange and wallet services, creating a more unified user experience. Users benefit from holding and using both tokens, enjoying trading fee discounts on the exchange (BGB) and reduced transaction fees and rewards within the wallet (BWB). This drives deeper engagement with both platforms and overall ecosystem growth. Furthermore, using each token for its intended platform optimises costs, whether in trading or transaction fees. The separate yet complementary functions of the tokens ensure users engage across multiple platforms, maximising the use of both tokens and enhancing ecosystem utility.

This improved dual token system also diversifies risk and offers flexibility. Each token can address risks specific to its platform. For instance, BGB can manage exchange-related risks, while BWB can focus on wallet-specific security and functionality. This creates a resilient system where any of the two platforms can always support the ecosystem by acting as a buffer against systemic risks. Besides, the targeted utility of each token allows users to focus on the exchange or wallet benefits according to their needs for flexibility in asset utilisation and broader participation in the Bitget ecosystem.

Compared to the BNB-TWT system, where BNB primarily offers trading fee discounts on Binance and some additional utilities across Binance’s ecosystem, and TWT focuses on governance and incentives within the Trust Wallet ecosystem, Bitget’s approach creates a more integrated ecosystem. Exchange and wallet functionalities are closely linked to enhance user experience and utility. The distinct and complementary roles of BGB and BWB provide clear incentives for users to hold and use both tokens, driving deeper engagement and utility across the Bitget ecosystem. Bitget will continue to innovate and expand the functionalities of both tokens in a coordinated manner to make sure that the exchange and wallet evolve together and offer new features and benefits to users.

It's worth noting that Bitget is indeed a better guarantee for the value appreciation of BGB and BWB because of our devoted efforts to reinvent ourselves. Currently, the largest crypto copy trading platform and the leading crypto derivatives platform, Bitget has also remained the best performing CEX despite the bear market of 2022-23 with a 230% jump in the monthly average spot volume from January 2024 to May 2024 only (per Bitget data as of May 25, 2024). In terms of users' trust and activities, Bitget Proof-of-Reserves for May 2024 shows the third consecutive month of BTC, ETH and USDT inflows with the respective average monthly increases of 50%, 62%, and 54%. The combination of constant innovation, leadership in trading, resilience during market downturns, increased user trust and activity, and transparent Proof-of-Reserves all contribute to a robust and trustworthy platform. These factors create a favourable environment for the value appreciation of BGB and BWB. Users are more likely to adopt, hold, and use these tokens within an ecosystem that is perceived as innovative, reliable, and transparent, thus driving demand and supporting their value growth.

Analysing The Tokenomics

Revenue is crucial for the projected valuation of a token as it indicates utility and demand, ensures economic viability and sustainability, and attracts investor confidence. It helps cover operational costs and supports token buybacks and burns, leading to increased token value. Revenue also funds staking rewards, driving user engagement and, in a sense, reducing circulating supply. Moreover, it enables growth, development initiatives, and fosters innovation and ecosystem expansion. Consistent revenue generation enhances market perception, building trust and credibility. They collectively contribute to a higher token valuation, making revenue generation essential for the long-term success and appreciation of the token's value. A well-designed tokenomics is therefore one major driver of BWB potential value.

BWB presents a superior revenue-generating model compared to the Trust Wallet token (TWT) due to its well-defined use cases and the strategic token distribution above. BWB's use cases within the Bitget ecosystem include transaction fee payments, staking rewards, access to premium features, and participation in wallet-specific promotions including airdrops from Bitget Wallet and airdrops from projects in the ecosystem. These functionalities promise to drive consistent and diverse usage of the token for enhanced user engagement and the generation of continuous revenue streams from transaction fees and staking activities.

The total supply of BWB is 1,000,000,000 tokens at the IEO price of $0.15. Below is a breakdown of BWB token distribution and the corresponding revenue implications:

(1) Private Investors: 10%

● Vesting Details: 12-month cliff, then 12-month linear vesting.

● Purpose: Tokens are locked for the first year, then gradually released over the next year, ensuring long-term commitment from investors.

● Revenue Implications: Ensures initial price stability, which attracts more users and trades and thus increases transaction volume and fee revenues as the tokens gradually enter circulation.

(2) Public Offering: 1.1%

● Vesting Details: 1% via Initial Exchange Offering (IEO) on Bitget Launchpad and 0.1% via Initial DEX Offering (IDO) on Bitget Wallet Launchpad.

● Purpose: Generates initial liquidity and broad public participation.

● Revenue Implications: Leads to higher trading volumes and initial fee revenues.

(3) Pre-TGE Airdrop: 5%

● Vesting Details: For Bitget Wallet users who have collected BWB points.

● Purpose: Rewards early adopters and active users of the wallet.

● Revenue Implications: Increases user engagement and loyalty, encourages frequent usage of the wallet and generates more transaction fees.

(4) BKB Token Holders: 3%

● Vesting Details: For swapping BitKeep's BKB (total supply: 600 million BKB) to the new BWB at the exchange rate of 6 BKB to 10 BWB.

● Purpose: Ensures a smooth transition from the old token to the new one and rewards loyal users.

● Revenue Implications: Retains existing user base for continued usage and transaction volumes, hence maintaining steady revenue streams.

(5) Team: 10%

● Vesting Details: 12-month cliff, then 36-month linear vesting.

● Purpose: Aligns the team’s incentives with the long-term success of the project.

● Revenue Implications: Motivates the team to drive long-term growth, which results in continuous improvements and potentially higher user adoption and consequently translates to increased transaction fee revenues.

(6) Ecosystem Development: 18%

● Vesting Details: Linear release over five years for growth, grants, incubations, and partnerships.

● Purpose: Supports the continuous development and expansion of the ecosystem.

● Revenue Implications: Funds ecosystem growth and development to attract more projects and users to the wallet and increase transaction volumes and generate additional revenue streams accordingly.

(7) Staking Incentives: 6%

● Vesting Details: To reward users who stake their tokens for farming and other purposes.

● Purpose: Encourages token holders to stake their tokens.

● Revenue Implications: Reduces circulating supply and potentially increases token value, while generating staking-related revenues.

(8) Community Treasury: 46.9%

● Vesting Details: 6.9% released at TGE for marketing and liquidity, then linear release over five years.

● Purpose: Funds marketing efforts, provides liquidity, and supports long-term project sustainability.

● Revenue Implications: Provides sustained funding for marketing and liquidity provision to drive user acquisition and trading activity, which increases transaction fees and overall platform revenue.

This token allocation strategy supports both short-term liquidity needs and long-term ecosystem growth and further strengthens BWB's revenue model. In contrast, TWT primarily focuses on governance and wallet incentives without the extensive ecosystem integration and strategic distribution seen with BWB.

To sum up, BWB’s comprehensive approach produces a robust and diversified revenue generation model by leveraging its use cases and strategic token distribution to create a stable, sustainable, and growing revenue stream, making it a more effective model for generating revenue and, obviously, for an established future value of BWB.