Flare FIP.16 proposal

Flare’s latest governance draft would cut annual Flare inflation to 3% and pair it with a much larger token-burn program. (proposals.flare.network) The proposal, called Flare Improvement Proposal 16, was created by the Flare Foundation on March 27, 2026 and is still listed as a draft. It says approval requires a 50% majority. (proposals.flare.network) Flare says the change would reduce inflation by 40% from 5% to 3% and set up new mechanisms to collect what it calls the network’s “organic earnings.” The foundation said on April 8 that those revenues would include fees from data services, FAssets, Flare Smart Accounts, confidential computing, and maximal extractable value, or trading profits captured during block production. (proposals.flare.network; flare.network) Token inflation is the rate at which new coins are issued, and token burning is the permanent removal of coins from supply. Flare’s draft says the goal is to move Flare from inflationary issuance toward a point where network revenues first offset new issuance and then push supply lower. (proposals.flare.network) The immediate backdrop is a design change inside Flare’s FAssets system, which lets assets from other chains be used in decentralized finance on Flare. Flare said stablecoin collateral and a “Core Vault” made FAssets safer and more capital-efficient, but also reduced the direct role of Flare tokens inside that system. (proposals.flare.network; flare.network) Flare’s April 8 post said more than 150 million FXRP was already in circulation, with about 85% deployed across decentralized finance. The foundation argued that activity at that scale should feed back into Flare token economics more directly than the older model did. (flare.network) The proposal also follows an earlier token-policy vote. In July 2024, Flare Improvement Proposal 9 was accepted with 94.63% support and authorized roughly 510 million Flare tokens from a 20 billion token incentive pool for an emissions schedule tied to ecosystem growth. (proposals.flare.network) Voting power on Flare governance comes from wrapped Flare tokens, with one vote per token, according to the Flare portal. As of the portal page available this week, Flare Improvement Proposal 16 was not yet listed among accepted proposals, which matches its draft status on the proposal repository. (portal.flare.network; proposals.flare.network) The foundation’s public case is that Flare should capture more of the fees and trading value already generated on the network, then use that flow to reduce supply and fund growth. Whether token holders accept that tradeoff will be decided in governance, not in the discussion thread now circulating around the draft. (flare.network; portal.flare.network)