As you can see in the photo below, in every item there is a recycle button on its side.
Sources confirmed that when you carry too much pieces of an item, you have to dispose of them by clicking that recycle button. Recycling an item gives you something in return. This is very much like in Ingress' Recycle system where recycling gives you XM, which in turn gives you energy to do certain actions. Some source suspects that in Pokemon Go, it will be XP. You'll need XP to level up your trainer, which you'll also get from battling in the gym, catching and evolving Pokemon.
Getting an item in PokeStops will gain you 50 XP. We think these are very convenient since it will help you level up by shopping in Stops. Why? This is because it seems leveling up gets harder as your trainer level gets higher.
There are certain items that are given free at certain levels, as well. So the difficulty of gaining another level is much more worth it. Like some sources say that, at Level 2 you will have a free Ultra ball and at Level 5, you will get a Master ball.
Those are pretty good deals! Shopping and Recycling gets you some XP in return (wow, right?), and leveling up have never been this exciting, really.
What do you think of the recycling system? Let us know in the comments below! For more information on Pokemon Go, please always tune it at RockU Mediacraft!