Avalon Labs Burns 80 million AVL Tokens
Avalon labs has taken a bold step by burning 80 million AVL tokens. This action removes about 44% of the circulating supply, permanently. The tokens, valued at around $16 million, were mostly unclaimed from a March 2024 airdrop.
On June 9, Avalon Labs announced the burn on X. Thay see this as the beginning of a “deflationary cycle,” aiming to align with long-term incentives. Over the past year, more than 100,000 users claimed $20 million in AVL through the airdrop. The company thanked its users for their support and remains committed to aligning project and community interests.
token burns reduce supply, perhaps increasing scarcity and price. AVL’s price surged over 18% after the proclamation and became the top futures buy on Bybit.
Avalon Labs is a financial technology company building Bitcoin-backed on-chain capital markets.They have disbursed over $1.2 billion in overcollateralized BTC-backed loans. To extend this model to institutional clients, they secured a $2 billion credit line from prominent Asian conglomerates.
Avalon created USDa, the first Bitcoin-backed stablecoin, allowing users to unlock liquidity without selling their BTC. Their CeDeFi protocol offers yield-generating savings products. Users can deposit FBTC and borrow USDT at fixed rates, deployed into high-yield strategies via platforms like Ethena Labs.
Avalon operates across 20+ public blockchains and 50+ isolated lending markets, with total value locked exceeding $1.1 billion, as per DefiLlama data.
Recent developments include an undisclosed investment from YZi Labs and exploring a Bitcoin-backed public debt fund under SEC oversight.
