In a bid to revolutionize the blockchain landscape, Flare has put forth a governance proposal that would make it a pioneer in capturing maximal extractable value (MEV) at the protocol level. This move would redirect MEV revenue, currently dominated by a select few specialized actors, back into the protocol's token economy. MEV refers to the income generated by block builders through the manipulation of transaction ordering within blocks, effectively imposing a hidden tax on regular users.

Estimates suggest that MEV revenues reach tens of millions of dollars on certain networks, with Ethereum and Solana potentially exceeding $500 million and $1 billion, respectively. Flare's proposal is structured into three stages, with the first stage involving the transfer of block building responsibilities from individual validators to a designated builder operated by the Flare Entity. The second stage would integrate block building into Flare Confidential Compute, enhancing transparency, while the third stage would consolidate the builder and proposer into a single entity, transitioning validators to a verification role.

Additionally, the proposal introduces FIRE, the Flare Income Reinvestment Entity, tasked with collecting revenue from various protocol sources, including fees from attestation, FAsset, Smart Accounts, confidential compute, and captured MEV. FIRE's primary objective is to decrease the FLR token supply through strategic buybacks and burns on the open market. Upon approval, several changes would be implemented immediately, including a reduction in annual FLR inflation from 5% to 3% and a decrease in the hard cap from 5 billion to 3 billion tokens per year.

The base gas fee would also increase 20-fold, from 60 gwei to 1,200 gwei, potentially raising the estimated annual FLR burn from approximately 7.5 million to 300 million, based on current transaction volumes. Notably, even with this increase, the cost of a standard Flare transaction would remain a fraction of a cent. Flare's connection to the XRP ecosystem is significant, having initially distributed its tokens through an airdrop to XRP holders in 2023.

Its FAssets system has successfully brought smart contract functionality to assets on blockchains like XRPL, generating over 150 million FXRP. As of late March 2026, the network boasts over $160 million in total value locked, with more than 887,000 active addresses, underscoring its growing presence in the blockchain space.