Deep Dive
1. Massive Token Burn (11 November 2025)
Overview: Avalon Labs burned 100M AVL tokens year-to-date (67% of circulating supply), funded entirely by protocol revenue. This reduces sell pressure and signals financial sustainability.
The burns are executed monthly, with $1M worth of AVL destroyed since October 2025. Unlike treasury-funded burns, this approach ties supply reduction directly to platform revenue, creating a deflationary feedback loop.
What this means: This is bullish for AVL because it combines scarcity with proof of operational profitability. Sustained burns could offset future token unlocks, but reliance on protocol revenue introduces cyclical risks if platform activity declines. (Source)
2. Buyback Program Completion (10 September 2025)
Overview: Avalon completed a $1.88M buyback, burning 13.95M AVL tokens (37% of circulating supply since June).
The program used protocol revenue to repurchase tokens at an average price of $0.1347, permanently removing them. Cumulative burns since June 2025 total 93.95M AVL.
What this means: This is neutral for AVL. While reducing supply, the token remains 70% below its March 2025 peak ($0.70). Success hinges on maintaining revenue to fund future burns amid planned token unlocks. (Source)
3. Deflationary Cycle Initiation (9 June 2025)
Overview: Avalon burned 80M unclaimed airdrop tokens (44% of supply), triggering an 18% price surge.
The burn targeted dormant tokens from a 2024 airdrop, transitioning AVL into a deflationary model. This followed a $2B credit line secured for institutional lending expansion.
What this means: This is bullish for AVL because it resets tokenomics by eliminating “dead weight” supply. However, with 84% of the 1B total supply still locked, future unlocks could test price stability. (Source)
Conclusion
Avalon Labs prioritizes supply reduction through protocol-funded burns, but codebase updates remain undisclosed. While tokenomics shifts aim to boost scarcity, how will planned unlocks and market volatility impact these efforts?