- Avalon Labs incinerates 93.9 million AVL tokens.
- Follows programmatic on-chain activity.
- Significant impact on circulating supply.
Avalon Labs carried out a significant buyback and burn of 93.9 million AVL tokens in September 2025, reducing the circulating supply and impacting the token’s value.
The token burn reflects strengthened market position for Avalon Labs, showcasing effective deflationary strategies and boosting AVL prices by 9%, with minimal broader cryptocurrency market effect.
Avalon Labs performed a substantial buyback and burn of 93.9 million AVL tokens. This initiative is part of their continuous efforts to reduce the circulating supply of their native token through a well-defined contractual mechanism.
The buyback and burn were orchestrated by the Avalon Labs team, using revenue generated by the protocol, aimed at increasing the scarcity and potential value of AVL tokens in the open market.
The AVL token burn has directly reduced the token’s circulating supply by nearly 44% since June 2025. This action is expected to offer price support and enhance market perception among investors and traders.
This strategic token burn signifies a substantial financial shift for Avalon Labs, utilizing operational revenue instead of relying on external investor funds for the buyback, highlighting a sustainable path forward for existing token holders.
Avalon Labs Team, Official Statement, Avalon Labs, “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.”
The burn impacts the crypto market, especially for AVL stakeholders, potentially influencing investors’ confidence. Industry responses suggest a favorable outlook, yet the broader implications remain subject to market dynamics and regulatory developments.
Historically, token burns could stabilize or enhance a token’s price through supply contraction, potentially strengthening Avalon Labs’ market position. Future regulatory frameworks might further shape the operational landscape for such buyback mechanisms.
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