Reward epoch 400 closed today, marking the first epoch where WFLR delegations are affected by changes proposed under FIP.16. The record governance turnout is now turning into measurable network changes.
The first change to land is the inflation cut: 5% → 3%. Both delegation and staking reward rates drop accordingly.
What we're seeing so far:
- Network average WFLR delegation APR has dropped from 6.8% to 4%.
- Staking reward rates are also lower, but the effect won't be visible to users for about another week, when staking rewards become claimable.
Importantly, this is only the first major change. Another FIP.16 change that will soon be implemented will re-weight how an infrastructure provider's voting weight is calculated: native FLR stake will count 5× more than WFLR delegations. Once that lands, we estimate the network's average WFLR delegation APR will drop further, to around 2%.
On the other hand, staking rewards will increase. This marks a shift in the FLR tokenomics and protocol security, where staked tokens are weighted more heavily, which over the long run should lead to deeper enshrinement.