Flare Governance Proposal FIP.16 will open for voting on April 17, aiming to overhaul the token inflation rate and adjust staking incentive mechanisms.

ME News Report, April 14 (UTC+8), XRP ecosystem DeFi project Flare governance proposal FIP.16 will open for voting on April 17. The core goal is to significantly reduce inflation, establish an income reinvestment mechanism, and enhance staking incentives to transition the FLR token from inflationary to potentially deflationary, strengthening the network’s long-term sustainability and security. The proposal includes immediately lowering the annual inflation rate from 5% to 3% (a 40% reduction); establishing the Flare Income Reinvestment Entity (FIRE) to unify collection and redistribution of network income (FDC fees, FAssets minting/redeeming fees, FCC, MEV, etc.); greatly increasing the base transaction fee (from 25 gwei to 500 gwei), increasing FLR burn volume, with an estimated annual burn of about 300 million FLR; adjusting the staking incentive mechanism to prioritize P-chain staking (with a weight five times that of C-chain delegation), raising the maximum validator staking limit to 300 million FLR, and mandating that entities receive at least 20% of the fees. (Source: Foresight News)