FIP.16: Restructure FLR Tokenomics for Long-Term Network Sustainability

https://proposals.flare.network/FIP/FIP_16.html

Making FAssets safer through stablecoin collateral and more capital-efficient via the Core Vault unintentionally reduced FLR’s role in the ecosystem. This Governance proposal aims to fundamentally relink FLR token economics to existing and growing ecosystem activity.

If accepted, this proposal will immediately reduce FLR inflation by 40% and establish mechanisms to collect and distribute the organic earnings of the network. The design ensures that as ecosystem activity expands, FLR will first transition to being non inflationary, and then to being deflationary. Furthermore, the system will distribute parts of the earnings collected in FAssets, FLR, stablecoins, WETH and others, to applications and asset issuers, to incentivize further ecosystem expansion. This creates a feedback loop driving higher network earnings. Additionally, the proposal seeks to accelerate FLR supply reduction and further incentivize staking over delegation, a shift designed not only to improve network security, but also to increase locked supply and thus ensure economic stability for validators.

Voting period: 17-April-2026 to 24-April-2026