Flare Network's FIP 16 Brings Changes, But Bear Trend Persists
The Flare Network has seen significant changes since the passing of Improvement Proposal (FIP) 16 in April, which restructured FLR issuance, burn rate, transaction fees, and protocol revenue. The proposal was met with overwhelming support, garnering 98.06% in favor.
According to a DeFiLlama report, the effects of FIP 16 are visible onchain, with FLR token issuance falling from 5% to 3% in May. Furthermore, the staked share of staked-or-delegated FLR has increased, securing the network and removing tokens from immediate circulating supply.
The current burn rate has increased at least tenfold since the July 14 hard fork, while lower inflation and growing protocol revenue are seen as positive developments for users and holders. However, despite these improvements, the Flare crypto price trend remains bearish, with a clear downward momentum evident on the weekly chart.