diff --git a/examples/test_no_fbip.lux b/examples/test_no_fbip.lux
deleted file mode 100644
index e1d2ada..0000000
--- a/examples/test_no_fbip.lux
+++ /dev/null
@@ -1,20 +0,0 @@
-// Test WITHOUT FBIP by forcing rc>1 (shared reference)
-fn useList(l: List<Int>): Int = {
-    List.length(l)
-}
-
-fn main(): Unit = {
-    Console.print("=== Without FBIP (forced rc>1) ===")
-    
-    let a = List.range(1, 100)
-    // Create alias to bump rc, preventing FBIP
-    let alias = a
-    let len1 = useList(alias)
-    
-    // Now 'a' has rc>1 so map must allocate new list
-    let b = List.map(a, fn(x: Int): Int => x * 2)
-    let c = List.filter(b, fn(x: Int): Bool => x > 50)  
-    let d = List.reverse(c)
-    
-    Console.print("Shared reference chain done")
-}
diff --git a/examples/test_ownership_transfer.lux b/examples/test_ownership_transfer.lux
new file mode 100644
index 0000000..efa4890
--- /dev/null
+++ b/examples/test_ownership_transfer.lux
@@ -0,0 +1,21 @@
+// Test demonstrating ownership transfer with aliases
+// The ownership transfer optimization ensures FBIP still works
+// even when variables are aliased, because ownership is transferred
+// rather than reference count being incremented.
+
+fn main(): Unit = {
+    Console.print("=== Ownership Transfer Test ===")
+
+    let a = List.range(1, 100)
+    // Ownership transfers from 'a' to 'alias', keeping rc=1
+    let alias = a
+    let len1 = List.length(alias)
+
+    // Since ownership transferred, 'a' still has rc=1
+    // FBIP can still optimize map/filter/reverse
+    let b = List.map(a, fn(x: Int): Int => x * 2)
+    let c = List.filter(b, fn(x: Int): Bool => x > 50)
+    let d = List.reverse(c)
+
+    Console.print("Ownership transfer chain done")
+}
diff --git a/src/codegen/c_backend.rs b/src/codegen/c_backend.rs
index fa459a9..25a5399 100644
--- a/src/codegen/c_backend.rs
+++ b/src/codegen/c_backend.rs
@@ -452,6 +452,10 @@ impl CBackend {
             self.writeln("static int64_t lux_rc_alloc_count = 0;");
             self.writeln("static int64_t lux_rc_free_count = 0;");
             self.writeln("");
+            self.writeln("// FBIP (Functional But In-Place) optimization counters");
+            self.writeln("static int64_t lux_fbip_reuse_count = 0;");
+            self.writeln("static int64_t lux_fbip_copy_count = 0;");
+            self.writeln("");
         }
 
         self.writeln("// Allocate RC-managed memory with initial refcount of 1");
@@ -508,6 +512,11 @@ impl CBackend {
             self.writeln("        fprintf(stderr, \"[RC] No leaks: %lld allocs, %lld frees\\n\",");
             self.writeln("                (long long)lux_rc_alloc_count, (long long)lux_rc_free_count);");
             self.writeln("    }");
+            self.writeln("    // Print FBIP optimization stats");
+            self.writeln("    if (lux_fbip_reuse_count > 0 || lux_fbip_copy_count > 0) {");
+            self.writeln("        fprintf(stderr, \"[FBIP] %lld reuses, %lld copies\\n\",");
+            self.writeln("                (long long)lux_fbip_reuse_count, (long long)lux_fbip_copy_count);");
+            self.writeln("    }");
             self.writeln("}");
             self.writeln("");
         }
@@ -1041,6 +1050,9 @@ impl CBackend {
         self.writeln("static LuxList* lux_list_reverse(LuxList* list) {");
         self.writeln("    // FBIP: If rc=1, reverse in-place instead of copying");
         self.writeln("    if (LUX_RC_HEADER(list)->rc == 1) {");
+        if self.debug_rc {
+            self.writeln("        lux_fbip_reuse_count++;");
+        }
         self.writeln("        // In-place reversal - just swap element pointers");
         self.writeln("        int64_t n = list->length;");
         self.writeln("        for (int64_t i = 0; i < n / 2; i++) {");
@@ -1050,6 +1062,9 @@ impl CBackend {
         self.writeln("        }");
         self.writeln("        return list;  // Reuse same list");
         self.writeln("    }");
+        if self.debug_rc {
+            self.writeln("    lux_fbip_copy_count++;");
+        }
         self.writeln("    // rc > 1: Allocate new list (standard path)");
         self.writeln("    LuxList* result = lux_list_new(list->length);");
         self.writeln("    for (int64_t i = 0; i < list->length; i++) {");
@@ -1068,6 +1083,9 @@ impl CBackend {
         self.writeln("    }");
         self.writeln("    // FBIP: If rc=1, truncate in-place");
         self.writeln("    if (LUX_RC_HEADER(list)->rc == 1) {");
+        if self.debug_rc {
+            self.writeln("        lux_fbip_reuse_count++;");
+        }
         self.writeln("        // Decref elements we're dropping");
         self.writeln("        for (int64_t i = n; i < list->length; i++) {");
         self.writeln("            lux_decref(list->elements[i]);");
@@ -1075,6 +1093,9 @@ impl CBackend {
         self.writeln("        list->length = n;");
         self.writeln("        return list;  // Reuse same list");
         self.writeln("    }");
+        if self.debug_rc {
+            self.writeln("    lux_fbip_copy_count++;");
+        }
         self.writeln("    // rc > 1: Allocate new list");
         self.writeln("    LuxList* result = lux_list_new(n);");
         self.writeln("    for (int64_t i = 0; i < n; i++) {");
@@ -1094,6 +1115,9 @@ impl CBackend {
         self.writeln("    int64_t new_len = list->length - n;");
         self.writeln("    // FBIP: If rc=1, shift elements in-place");
         self.writeln("    if (LUX_RC_HEADER(list)->rc == 1) {");
+        if self.debug_rc {
+            self.writeln("        lux_fbip_reuse_count++;");
+        }
         self.writeln("        // Decref elements we're dropping");
         self.writeln("        for (int64_t i = 0; i < n; i++) {");
         self.writeln("            lux_decref(list->elements[i]);");
@@ -1105,6 +1129,9 @@ impl CBackend {
         self.writeln("        list->length = new_len;");
         self.writeln("        return list;  // Reuse same list");
         self.writeln("    }");
+        if self.debug_rc {
+            self.writeln("    lux_fbip_copy_count++;");
+        }
         self.writeln("    // rc > 1: Allocate new list");
         self.writeln("    LuxList* result = lux_list_new(new_len);");
         self.writeln("    for (int64_t i = 0; i < new_len; i++) {");
@@ -2475,6 +2502,9 @@ impl CBackend {
                 self.writeln(&format!("LuxList* {};", result_var));
                 self.writeln(&format!("if (LUX_RC_HEADER({})->rc == 1) {{", list));
                 self.indent += 1;
+                if self.debug_rc {
+                    self.writeln("lux_fbip_reuse_count++;");
+                }
                 self.writeln(&format!("// FBIP: Reuse list in-place"));
                 self.writeln(&format!("{} = {};", result_var, list));
                 self.writeln(&format!("for (int64_t {} = 0; {} < {}->length; {}++) {{", i_var, i_var, list, i_var));
@@ -2489,6 +2519,9 @@ impl CBackend {
                 self.indent -= 1;
                 self.writeln("} else {");
                 self.indent += 1;
+                if self.debug_rc {
+                    self.writeln("lux_fbip_copy_count++;");
+                }
                 self.writeln(&format!("// Allocate new list"));
                 self.writeln(&format!("{} = lux_list_new({}->length);", result_var, list));
                 self.writeln(&format!("for (int64_t {} = 0; {} < {}->length; {}++) {{", i_var, i_var, list, i_var));
@@ -2528,6 +2561,9 @@ impl CBackend {
                 self.writeln(&format!("int64_t {} = 0;", count_var));
                 self.writeln(&format!("if (LUX_RC_HEADER({})->rc == 1) {{", list));
                 self.indent += 1;
+                if self.debug_rc {
+                    self.writeln("lux_fbip_reuse_count++;");
+                }
                 self.writeln(&format!("// FBIP: Filter in-place"));
                 self.writeln(&format!("{} = {};", result_var, list));
                 self.writeln(&format!("for (int64_t {} = 0; {} < {}->length; {}++) {{", i_var, i_var, list, i_var));
@@ -2550,6 +2586,9 @@ impl CBackend {
                 self.indent -= 1;
                 self.writeln("} else {");
                 self.indent += 1;
+                if self.debug_rc {
+                    self.writeln("lux_fbip_copy_count++;");
+                }
                 self.writeln(&format!("// Allocate new list"));
                 self.writeln(&format!("{} = lux_list_new({}->length);", result_var, list));
                 self.writeln(&format!("for (int64_t {} = 0; {} < {}->length; {}++) {{", i_var, i_var, list, i_var));