Flare Network's FIP 16 Boosts Burn Rate but FLR Price Remains Bearish

The Flare Network's Improvement Proposal (FIP) 16 was approved in April with overwhelming support, garnering 98.06% of votes. The proposal aimed to restructure FLR issuance, burn rate, transaction fees, and protocol revenue.

Since the implementation of FIP 16, the token issuance on Flare Network has decreased from 5% to 3% in May. Furthermore, the staked share of staked-or-delegated FLR increased from 32% in July to 46% by late August, securing the network and removing tokens from immediate circulating supply.

One of the significant outcomes of FIP 16 is the increase in burn rate, which has risen at least tenfold since the July 14 hard fork. This, combined with lower inflation and growing protocol revenue, was seen as positive news for users and holders.

However, despite these developments, the Flare crypto price trend has been bearish. Since late September, the FLR price has slid, and its weekly swing structure turned bearish in December 2025 after it slipped below the $0.0121 low. The Relative Strength Index (RSI) has remained below neutral 50 since October 2025, while the On Balance Volume (OBV) has continued its persistent downtrend.

Traders are cautioning that the long-term trend should be respected, and Flare crypto is likely to descend toward new lows. Nevertheless, a price move above $0.00829 could break the bearish structure and serve as the first sign of a bullish trend shift.