Monthly recap: May 2026

Our latest monthly recap covers exactly what FIP.16 is, how it affects your returns on Sceptre for Flare, and what our team is working on to ensure Sceptre remains the platform with the best yield opportunities.

FIP.16 is now in full effect

The latest Flare Improvement Proposal (FIP.16) was favorably voted on April 24th. FIP.16 proposed to fix recent upgrades that unintentionally reduced FLR’s role in the ecosystem. To do so, it immediately cut FLR inflation by 40% and relinked token economics directly to network activity, putting FLR on a path to become a deflationary asset. FIP.16 also aims to reward ecosystem builders and accelerate the reduction of FLR’s supply.

In order to ensure the sustainability of entities providing both data and block validation, the proposal introduced a minimum 20% entity fee on validators, which means validators now take a minimum 20% of all rewards on anything staked and delegated to them. Coupled with the aforementioned 40% inflation reduction, the impact of the FIP.16 on Sceptre for Flare was immediate: last month, we collected around 1.1M FLR less from staking rewards when compared to the previous distribution and around 60% of the delegation rewards we usually receive.

A lot of our community members asked us why we didn’t vote for or against this proposal and the reason is simple: when you stake on Sceptre, you are effectively relinquishing your right to vote on FIPs, but that right is never delegated to us.

Yield is important to the sustainability of Sceptre and to our community. We’ve always promised the highest yield on FLR, and we plan to keep making good on our word. As such, our team started updating the way validators are selected in order to give you the highest yield possible without sacrificing security. The results have been promising so far (+22% more FLR on the second delegation rewards distribution), but we won’t stop here, as you’re about to see.

What we’ve been working on

Validator optimization can only get us so far, so we’ve been also considering running our own validator. Besides allowing us to save +20% on fees, this gives us infinitely more control over the amount of rewards that we are able to distribute with the members of our community, which will result in an APY increase. For now, we’ve been only testing how much value we’re able to extract from one validator with a small amount of FLR, but we’ll keep you posted with the results and the eventual rollout of this initiative.

In addition to this, we’re also in the final stages of testing a vault on the Ethereum network that will allow you to earn on over-collateralized RWAs (real-world assets). This new earning opportunity on Sceptre marks our biggest milestone yet, expanding our focus into lower-volatility assets. Stay tuned as we will be revealing all the details in the coming weeks.

Once again, thank you for being part of the Sceptre community.