Flare’s FIP.16 tokenomics overhaul has reduced annual FLR inflation, increased transfer fees and strengthened the connection between network activity and token supply mechanics. The proposal passed with 98.06% support on April 24, followed by a May 14 reduction in annual inflation from up to 5% to 3% and a cut in the issuance ceiling from 5 billion to nearly 3 billion FLR. A July 14 hard fork raised the base transfer fee 20-fold, driving transfer-led burns to more than 10 times their pre-fork level while leaving a simple transaction costing 0.064 FLR. Staked FLR climbed from almost 16 billion to nearly 21.5 billion in July, while the staking share of delegated and staked tokens rose from 32% to 46% between April and August. The overhaul also changed staking weights, validator limits and delegation fees, while FIRE reduces supply through open-market buybacks and burns.