Flare’s staking totals climbed sharply after the network rolled out its FIP.16 tokenomics changes in July, with DefiLlama Research reporting that staked FLR increased from about 16 billion in July to 21.5 billion by late August. That represents a rise of roughly 34%, while the share of FLR that was either staked or delegated reached about 46%.

The shift follows a broader redesign aimed at lowering token issuance, increasing the role of fee burns, and routing selected protocol revenues into FIRE, a governed entity within the network. The changes have also altered incentives between staking on Flare’s P-chain and delegation on its C-chain.

How FIP.16 changed staking incentives

Under FIP.16, FLR locked on the P-chain carries five times the signing weight of wrapped FLR delegated on the C-chain. At the same time, delegated tokens remain liquid, preserving flexibility for holders who do not want to fully lock assets.

The July upgrade also increased the maximum stake allowed per validator and set a network-wide minimum delegation fee of 20%. Together, those adjustments reshaped the balance between validator staking and liquid delegation as the network sought to deepen participation.

Lower inflation and a tighter issuance cap

A central part of the overhaul was a reduction in FLR inflation, which was cut from 5% to 3%. Flare also lowered its annual issuance ceiling from 5 billion FLR to 3 billion FLR.

Those measures are intended to reduce the pace at which new tokens enter circulation. According to the reported post-upgrade trend, the network’s model is now relying more heavily on lower inflation and on burn mechanics than before.

Burn activity accelerates after the upgrade

DefiLlama Research said transaction burns have risen significantly since the changes took effect. All base fees are now burned, and the burn rate is running at more than ten times the level seen before the upgrade.

That increase adds another deflationary element to the revised system, complementing the lower issuance schedule. The source article did not estimate how much of the supply impact will come from burns versus the inflation cut over time, but it described both as core pieces of the new design.

FIRE begins collecting protocol revenue

The updated framework also directs several fee streams to FIRE. Since May, the governed entity has collected about $31,438 from four sources: FAssets minting fees, most FDC request fees, part of FAssets redemption fees, and FXRP destination-tag registrations.

The article noted that additional revenue opportunities, including MEV-related sources and other potential future streams, have not yet been fully realized. That means the current revenue figure reflects only the early stage of the model rather than a complete picture of Flare’s eventual fee generation.

What comes next for the model

The source article linked FXRP activity with RLUSD, saying that connection broadens Flare’s use across DeFi and collateral markets. It also said FIRE could move to joint community governance after its first year, although that step would depend on community support.

For now, the clearest confirmed result is the increase in staked and delegated FLR following the July changes. Whether the revised tokenomics continue to raise participation will likely depend on how sustained burns, revenue collection, and network activity develop from here.

Source: crypto.news