Crypto
$FLR Tokenomics Overhaul Boosts Staking, Token Burns on Flare Network
The Flare blockchain network has seen significant on-chain effects following its tokenomics overhaul. The FIP.16 proposal received 98.06% support from governance participants, leading to changes in $FLR issuance, staking weight, protocol revenue, token burns, and transfer fees.
The first major adjustment occurred on May 14th, when yearly inflation decreased from up to 5% to just 3%, and the annual issuance ceiling dropped from 5B to nearly 3B $FLR. Additionally, the robust inflation base was reduced.
On July 14th, a hard fork introduced a 20-fold increase in the base transfer fee to bolster the automatic $FLR burn model of the network. This change has led to a significant jump in staked $FLR tokens from 16B to 21.5B in July.