Flare tokenomics overhaul drives staking to 21.5B FLR and 10x increase in token burns

Sep 5, 2026

Flare's FIP.16 tokenomics overhaul has driven staked FLR to 21.5 billion tokens, up from 16 billion in July, while boosting transaction-fee burns tenfold. The upgrade reduced annual inflation from 5% to 3%, raised the base transaction fee on the C-chain from 25 to 500 gwei, and introduced the Flare Income Reinvestment Entity (FIRE), which has collected $31,438 from network activity since May.

FIP.16 tokenomics overhaul

▪Flare's community approved the FIP.16 governance proposal on April 24 with 98.06% support to tie FLR economics to network usage.
▪Under the FIP.16 proposal, the maximum validator size on the Flare network rose from 200 million FLR to 300 million FLR.
▪The FIP.16 proposal introduced a network-wide minimum delegation fee of 20% for Flare infrastructure providers, replacing the previous minimum of zero.

FLR staking growth

▪Staking's share of all staked and delegated FLR on the Flare network increased from approximately 32% in April to around 46% by late August.
▪The amount of FLR staked on the Flare network rose to 21.5 billion tokens, up from approximately 16 billion tokens in July.

P-chain signing weight mechanics

▪The revised signing weight system under FIP.16 applies a single calculation across Flare Time Series Oracle anchor feeds, the Flare Data Connector, and block-latency feeds.
▪Under the FIP.16 proposal, FLR staked on Flare's P-chain receives five times the signing weight of delegated FLR on its C-chain.

Transaction fee burn acceleration

▪Flare permanently burned 15.6 million FLR through transaction fees in 2026, with over 40% of that amount burned after the July 14 upgrade.
▪Flare raised its base transaction fee on its C-chain from 25 gwei to 500 gwei following its July 14 Granite hard fork.
▪The post-upgrade transaction burn rate on the Flare network has increased to more than ten times its pre-fork baseline.

Inflation reduction to 3%

▪Permanently burned FLR, tokens held by the Flare Income Reinvestment Entity, and unearned rewards in penalty pools are excluded from Flare's 3% inflation base calculation.
▪Flare reduced its annual FLR inflation rate from 5% to 3% on May 14, lowering its maximum annual issuance ceiling from 5 billion FLR to 3 billion FLR.

FIRE revenue collection

▪The Flare Income Reinvestment Entity has collected $31,438 in revenue from four active network income sources since starting operations in May.
▪The Flare Income Reinvestment Entity is designed to use collected network revenue for FLR token burns, open-market buybacks, and ecosystem incentives.
▪Out of the $31,438 collected by the Flare Income Reinvestment Entity, FAssets minting fees contributed $18,248 across 7,708 mints, and Flare Data Connector request fees contributed $12,676.