Flare Lowers Inflation to 3% and Implements Revenue Pool Stage

Flare (FLR) has moved to the execution stage of its tokenomics overhaul, reducing annual inflation from 5% to 3%. The base gas fee will be increased twentyfold, and protocol revenue will be collected under the FIRE structure for burning and reinvestment into the ecosystem. According to document FIP.16, this proposal was submitted on March 27, 2026, and passed on April 24 with 98.06% approval. The annual issuance cap for FLR will also be lowered from 5 billion FLR to 3 billion FLR. FIP.16 includes raising the base gas fee from 25 gwei to 500 gwei, and the FDC request fee will be adjusted to 3-20 FLR. 10% of the FDC request fee will be allocated for inflation rewards, while 90% will go into FIRE. FIRE will collect revenue generated from FAssets, FLR, stablecoins, etc., to be used for supply reduction and ecosystem reinvestment. On April 8, 2026, FIP.16 was described as a structure that connects network activity to value accumulation. Currently, the circulating supply of FLR is 86.793 billion FLR, with a market cap of approximately $5.974 billion, and a 24-hour trading volume of $3.36 million. Chain revenue has been recorded at $3,497.2 for 24 hours and $75,694.84 for 30 days. This overhaul should be viewed as a phased application of tokenomics redesign rather than just a revenue pool, and the actual supply reduction effect will depend on future execution scope and network activity.

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