The blockchain project Avalon Labs has announced a significant strategic move, burning 80 million of its native AVL tokens. This substantial reduction, accounting for 44% of the total circulating supply, marks a pivotal shift towards a deflationary economic model for the digital asset.
AVL Token Burn Details and Rationale
The 80 million AVL tokens permanently removed from circulation were primarily unclaimed assets from a previous airdrop, valued at approximately $16 million. This action is part of Avalon Labs’ commitment to fostering a robust ecosystem and enhancing the long-term value proposition of AVL. The company asserts that this deflationary approach is crucial for aligning incentives and increasing the token’s attractiveness for both users and investors. Following the announcement, the daily trading volume for AVL tokens notably doubled.
Over the past year, Avalon Labs saw over 100,000 users, referred to as “Avalonians,” successfully claim AVL tokens worth $20 million. These participants are recognized by the company as fundamental stakeholders, instrumental in shaping the platform’s enduring value.
Strategic Vision and Market Impact
Avalon Labs is not only focusing on its tokenomics but also actively pursuing broader integration within the financial landscape. In February 2025, the project revealed it was exploring the possibility of submitting an application to the U.S. Securities and Exchange Commission (SEC) to create what could be the industry’s first debt-backed Bitcoin Exchange Traded Fund (ETF). This initiative underscores their ambition to collaborate with legal experts to develop innovative financial instruments as more institutions adopt Bitcoin.
The project also recently secured an undisclosed investment from YZi Labs in May, further bolstering its development and expansion efforts. As of the time of this report, the AVL token was trading near $0.21, according to data from CoinMarketCap.
Avalon Labs’ leadership conveyed their forward-looking perspective via social media, stating: “This is not the end, but the beginning. Today we launch a new phase: business expansion. Expect more. Avalon is moving forward.” (https://twitter.com/avalonfinance_/status/1800262102029787130) This statement encapsulates the project’s ongoing evolution and its commitment to future growth within the digital asset space.
Former Wall Street analyst turned crypto journalist, Marcus brings a decade of expertise in trading strategies, risk management, and quantitative research. He writes clear, actionable guides on technical indicators, portfolio diversification, and emerging DeFi projects.