Flare FIP.16 Tokenomics Changes Now Live After Governance Vote
FIP.16 reduced FLR inflation to 3%, raised fee burns over 10x, and created the FIRE revenue pool. Staked FLR rose to 21.5 billion after the July hard fork.
Flare governance enacted FIP.16, which reduced annual FLR issuance from 5% to 3% and capped yearly issuance at 3 billion tokens instead of 5 billion. The changes also multiplied the transaction fee burn rate and directed protocol revenue into the new FIRE treasury.
Mechanics Now Active
The July 14 hard fork raised the base transaction fee from 25 gwei to 500 gwei. The burn rate now exceeds ten times the pre-fork level. P-chain locked stake now carries five times the weight of C-chain delegation, and staked FLR has risen from roughly 16 billion to 21.5 billion tokens.
FIRE has collected $31,438 since May from FAssets minting fees, FDC request fees, FXRP fees, and redemption fees. The treasury remains under Flare Foundation administration, with a possible community governance vote after the first year.
Remaining Unknowns
The scale of ongoing effects depends on future FAssets and FDC volumes. The exact current annualized inflation rate after exclusions for burned tokens and FIRE holdings remains unstated.