Avalon Labs, a Bitcoin on-chain financial services platform, has executed a significant token burn event, permanently removing 93.9 million AVL tokens from circulation in September 2025. The burn, valued at approximately $1.88 million, represents one of the largest deflationary actions in the project's history and was entirely funded by the platform's monthly protocol revenue rather than external investor funds.
The burn has reduced AVL's circulating supply by 37-44% since June 2025, marking a substantial contraction in available tokens. This event follows a systematic buyback and burn program where the platform uses generated revenue to purchase tokens from the open market before sending them to an inaccessible wallet address, ensuring permanent removal from circulation.
The immediate market response saw AVL's price increase by 9%, demonstrating the positive impact of the supply reduction. According to an official statement from 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."
This deflationary strategy creates a direct link between platform success and token value, as increased protocol revenue enables larger buybacks and burns. The consistent execution of this mechanism over several months has removed 37% of AVL's total circulating supply, enhancing scarcity and potentially supporting long-term price appreciation while demonstrating the platform's operational robustness.