old_contents: # app/__init__.py
  
  from flask_api import FlaskAPI
  from flask_sqlalchemy import SQLAlchemy
  
  # local import
  from instance.config import app_config
  
  # initialize sql-alchemy
  db = SQLAlchemy()
  
  def create_app(config_name):
      app = FlaskAPI(__name__, instance_relative_config=True)
      app.config.from_object(app_config[config_name])
      app.config.from_pyfile('config.py')
      app.config['SQLALCHEMY_TRACK_MODIFICATIONS'] = False
      db.init_app(app)
  
      return app
  
new_contents: # app/__init__.py
  
  from flask_api import FlaskAPI
  from flask_sqlalchemy import SQLAlchemy
  
  # local import
  from instance.config import app_config
  
  # initialize sql-alchemy
  db = SQLAlchemy()
  
  def create_app(config_name):
      app = FlaskAPI(__name__, instance_relative_config=True)
      app.config.from_object(app_config[config_name])
      app.config.from_pyfile('config.py')
      
  # We've also disabled track modifications for SQLAlchemy because 
  # it'll be deprecated in future due to it's significant performance overhead. 
  # For debugging enthusiasts, you can set it to True for now.
  
      app.config['SQLALCHEMY_TRACK_MODIFICATIONS'] = False
      db.init_app(app)
  
      return app
  
subject: Update __init__.py