MultiBank Group to Burn 50% of $MBG Token Supply Over Four Years

As more conventional institutions enter the digital asset field, one concern emerges: how to preserve long-term value for utility tokens in an ecosystem where oversupply may quickly weaken demand. Many Web3 ventures begin with excitement, but few plan for token sustainability after the initial release. This issue gets more significant when big user bases are involved. If a cryptocurrency lacks effective supply management, user adoption might result in instability rather than growth.

MultiBank Group, a long-standing worldwide banking company, has announced a repurchase and burn strategy for its utility token, $MBG, with the goal of removing 50% of the token's total supply over the next four years. In its first year, the firm has committed to burning $58.2 million worth of $MBG, accounting for 10.5% of the token's initial one billion supply. This type of structured supply reduction mechanism is increasingly being viewed as a means to promote token utility and long-term integration rather than short-term hype. It also meshes with a larger effort to provide clarity, compliance, and value retention to cryptocurrency.

This initiative is not occurring in isolation. MultiBank Group is bringing a $607 million balance sheet, 2 million customers, a $3 billion real estate RWA transaction, and an average daily trading volume of over $35 billion to Web3. That magnitude alone lends significance to the way supply management is handled. The firm has claimed that the repurchase program would evolve as usage grows across its platforms, implying an adaptable strategy based on real benefit rather than predetermined promises.

From the start, $MBG will enable users to pay trading costs across platforms and get half cashback, unlock loyalty tiers via prizes and discounts, and stake tokens for yield on MultiBank.io. These capabilities are closely related to user behavior that currently exists on the group's currency, metals, and commodities trading platforms.

The group's goals go beyond the token itself. By 2026, the ecosystem is predicted to have grown into a crypto ECN and prime brokerage, with decentralized infrastructure planned for 2027. By 2030, daily trade volume across platforms is expected to hit $460 billion. As Web3 matures, supply management systems like this one might become common among traditional finance-backed coins, particularly ones that serve both retail and institutional customers.

Deflationary tokens, designed to decrease in supply over time, are becoming increasingly significant in the digital asset landscape. These tokens aim to amplify scarcity, potentially driving up their value as availability diminishes. The concept of deflationary models, which include mechanisms like token burns and buybacks, is central to understanding how these tokens function. By reducing the total supply, these models can influence long-term token behavior, although the outcomes can vary based on usage and market conditions.

One notable example of a deflationary token is the MBG utility token, developed by MultiBank Group. This token is set to launch in mid-2025 and is designed with real-world utility in mind. Users can pay fees across MultiBank platforms, collect loyalty incentives, and stake tokens for native returns. This utility-focused design aligns with a broader industry trend toward tokens that offer concrete value and user benefits while adhering to regulatory norms and consumer security.

MultiBank Group's deflationary buyback and burn scheme is a key aspect of the MBG token. The group has committed to removing up to half of the token’s total supply over the next four years, with $58.2 million worth of tokens to be eliminated from circulation in the first year alone. This strategy aims to promote long-term value through scarcity, a concept familiar in traditional finance but less common in the cryptocurrency sector. By applying existing capital market methodologies to blockchain ecosystems, MultiBank Group is demonstrating a maturing approach to token economics.

Beyond utility tokens, MultiBank Group is also exploring the tokenization of real-world assets. The group plans to tokenize a $3 billion real estate portfolio, reflecting it on the blockchain. This initiative, along with the development of a crypto-focused electronic communication network (ECN) and prime brokerage service by 2026, and a decentralized infrastructure by 2027, points to a future where traditional banking and blockchain technology are more integrated. This integration could lead to more robust and transparent markets, leveraging the regulatory experience and size of major institutions.

The involvement of licensed financial institutions like MultiBank Group in the web3 ecosystem is expected to have a significant impact. Their participation raises compliance standards, increases practical value, and promotes long-term economic models. This trend could help web3 transition from its early speculative phase to a more mature ecosystem where tokens serve as functional tools supported by institutional rigor. MultiBank’s strategy exemplifies how traditional banking and emerging blockchain markets can collaborate to build more stable and accessible digital economies.