Avalon Labs burns 80M AVL, slashing circulating provide by 44%
Avalon Labs has burned 80 million AVL tokens, completely eradicating them from circulation in a transfer that reduces the circulating provide by roughly 44%.
Introduced on X on June 9, the tokens, price an estimated $16 million, have been principally unclaimed airdrop allocations from a March 2024 marketing campaign. Avalon framed the burn as the beginning of a “deflationary cycle” that aligns with long-term incentives.
Over the previous yr, greater than 100,000 customers have claimed $20 million in AVL by the airdrop. The corporate thanked its customers for serving to form the ecosystem and stated it stays centered on aligning incentives between the undertaking and its group.
Token burns are designed to scale back provide, probably growing shortage and value over time. On this case, market response was swift. AVL surged over 18% shortly after the announcement and ranked #1 in futures buys on Bybit.
Avalon Labs is a monetary know-how firm that’s constructing Bitcoin-backed on-chain capital markets. The platform has already disbursed greater than $1.2 billion in overcollateralized BTC-backed loans. To increase this mannequin to institutional purchasers, it lately obtained a $2 billion credit score line from distinguished Asian conglomerates.
Along with lending, Avalon created USDa, the primary Bitcoin-backed stablecoin, permitting customers to unlock liquidity with out promoting their Bitcoin (BTC). By means of its CeDeFi protocol, Avalon additionally affords yield-generating financial savings merchandise.
Customers can deposit FBTC, a 1:1 Bitcoin-pegged asset, and borrow Tether (USDT) at mounted charges, funds which might be deployed into high-yield methods through platforms like Ethena Labs (ENA). Avalon operates throughout 20+ public blockchains and 50+ remoted lending markets, with whole worth locked exceeding $1.1 billion, as per DefiLlama information.
The burn follows a number of main developments for Avalon Labs. On Might 26, YZi Labs, previously Binance Labs, introduced an undisclosed funding in Avalon, boosting the undertaking’s institutional backing.
And in February, the agency revealed it was exploring a Bitcoin-backed public debt fund beneath Securities and Alternate Fee oversight, a step that would convey extra conventional traders into the crypto credit score market.