In a recent governance proposal, Flare has outlined a plan to become one of the first layer-1 blockchains to capture maximal extractable value (MEV) at the protocol level, rather than allowing it to benefit a select few specialized actors. This move would redirect the revenue generated from transaction ordering, currently estimated to be in the tens of millions on networks like Arbitrum, $500 million on Ethereum, and up to $1 billion on Solana, back into the protocol's token economics. The proposal involves a three-stage process, starting with the transfer of block building from individual validators to a designated builder, initially operated by the Flare Entity, with a fallback to the current model if the builder is unavailable. The second stage would move block building into Flare Confidential Compute, making the process publicly auditable, and the third stage would merge the builder and proposer into a single entity, shifting existing validators to a verification role.

Additionally, the proposal introduces FIRE, the Flare Income Reinvestment Entity, which would collect revenue from various protocol sources, including attestation fees, FAsset and Smart Account fees, confidential compute fees, and captured MEV, with the primary goal of reducing the FLR token supply through open-market buybacks and burns. Upon approval, several changes would take effect immediately, including a reduction in annual FLR inflation from 5% to 3%, a decrease in the hard cap from 5 billion to 3 billion tokens per year, and a significant increase in the base gas fee, from 60 gwei to 1,200 gwei, which is expected to raise the estimated annual FLR burn from approximately 7.5 million to 300 million at current transaction volumes. Despite this increase, the cost of a standard Flare transaction would remain a fraction of a cent.

As a network with deep ties to the XRP ecosystem, Flare's FAssets system has already produced over 150 million FXRP, aiming to bring smart contract functionality to assets on blockchains like XRPL that do not natively support it, with the network reporting over $160 million in total value locked as of late March 2026, and more than 887,000 active addresses.