With Minecraft 1.16.1 we’ve also got PaperSpigot version of Minecraft server for Minecraft 1.16.1.
As always downloads are already available on official website: https://papermc.io/downloads#Paper-1.16
We believe we’ve ironed out the main game breaking issues. As always, please test with a test server and perform backups! Note that there is a small quirk with lighting that chunk generation some times has bugged light (a thin strip) and occasionally some neighbor areas. If this is super important to you to be “perfect”, you could pre-generate a world on Spigot first. However, these same bugs also exist in 1.15 – it’s not a “new” issue (but it is a Paper issue due to our changes making things faster which has uncovered some race conditions).
If you’re running old or outdated version be sure to check it out as they’ve fixed a lot of bugs and issues 🙂