Avalon Labs Burns Over One-Third of Token Supply
- Avalon Labs burnt 93.95 million AVL tokens, boosting token scarcity.
- AVL’s market value increased by 11% post-burn.
- Funded via monthly protocol revenue, impacting Bitcoin-related assets.
Avalon Labs burned 93.95 million AVL tokens, over a third of its supply, on September 10, 2025, utilizing monthly protocol revenue for the buyback.
This strategic burn aims to enhance AVL’s value and governance, spurring a market reaction with AVL’s price increasing nearly 11% shortly after the announcement.
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Avalon Labs Burns 93.95 Million AVL Tokens
Avalon Labs, focused on Bitcoin-centric capital markets, executed the burn on September 10, 2025. The action underscores their strategy to strengthen AVL token value, and governance. Fully funded by protocol revenue, the burn was confirmed on-chain, showing transparency in their process.
The 93.95 million AVL tokens burned amounts to 37% of the circulating supply. This strategic initiative, supported by monthly revenue, aims to reinforce AVL’s monetary utility in Bitcoin-backed financial instruments.
“We remain committed to advancing our mission of building the leading on-chain capital market for Bitcoin, and will continue to explore sustainable mechanisms to strengthen the Avalon ecosystem.” – Avalon Labs Team, Official Statement, Avalon Labs
Market Responds with 11% Increase in AVL Price
The immediate outcome saw AVL’s market price rise nearly 11%, marking a significant market shift. This surge also resulted in the market cap growing to $23.9 million, exhibiting market responsiveness to token scarcity.
Financially, the burn enhances AVL’s role in the protocol, potentially influencing Bitcoin-backed financial activities. While direct effects on other major cryptos like ETH or BTC are not evident, AVL’s ecosystem’s alignment with Bitcoin remains central.
Prior AVL Burns and Deflationary Strategies
In June 2025, Avalon Labs burnt over 80 million AVL tokens, establishing a precedent in deflationary tokenomics. Similar token burns by companies like Binance have historically led to increased token value, a trend Avalon seems keen to replicate.
Based on previous token burn outcomes, AVL’s long-term scarcity and governance influence could grow. As depicted, revenue-backed burns may secure strategic growth in AVL’s financial ecosystem.
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