FIP.16: Ongoing supply reduction.
Transaction fees on Flare are already burned, but current fees are low and the impact on supply is small.
The proposal increases the base fee, while keeping transaction costs very low.
At current activity levels, this would increase burn from ~7.5M FLR (last 6 months) to ~300M FLR annually in a conservative scenario.
The feedback loop is predictable:
Higher fee burn → partial offset to issuance → lower net inflation.
This does not fully remove inflation, but it makes network usage more relevant to supply dynamics.
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"What happens in the near term if FIP.16 passes?"
• Inflation drops from 5% to 3%
• FAsset minting fees, Flare Smart Accounts fees, and FDC attestation fees begin accruing to FIRE
• Fee burn increases with the base gas fee adjustment
• Protocol-owned block building — staged MEV roadmap begins
🚨 FXRP DeFi is exploding 👇
155M Minted. 86% in DeFi. $183M deployed. 16K users.
$XRP holders are putting tokens to work on Flare.
The new $FLR proposal ties this to supply reduction via FIRE.
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A lot of people keep claiming Bitcoin developers are "doing nothing" to address quantum risks. @PresidioBitcoin released a paper today they intend to regularly update with the current state of all the research and development developers "aren't doing." bitcoinmagazine.com/technical/pres…
The full FIP.16 X Space - start to finish.
We covered:
Why now, how this is a strategic shift, FIRE, protocol level MEV, what this means for builders, what goes live day 1, Songbird's role in FIP.16, timelines, and much more.
Watch it now or bookmark it for later.
Missed the FIP.16 Space?
Full replay is on our YouTube with topic timestamps so you can jump straight to what you care about.
Watch it here→ youtube.com/watch?v=sFhexU…
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