The main change of the SDDM 0.16.0 release is the implementation of configuration directories, along with a central configuration file that should be installed by default under /etc/sddm.conf. This was done to avoid situations where SDDM might end up broken after an upgrade due to the existence of mixed end user and OEM options. With this release, SDDM will automatically load the configuration file from /etc/sddm.conf for compatibility. But it can also scan all files in both the /usr/lib/sddm/sddm.conf.d (recommended for OEMs) and /etc/sddm.conf.d (recommended for end users) directories in alphabetical order.
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