In a groundbreaking move, Flare has introduced a governance proposal that would enable the network to capture maximal extractable value (MEV) at the protocol level, thereby redirecting revenue from external actors to the network's own token economy. This approach would make Flare one of the first layer-1 blockchains to achieve this feat. MEV refers to the revenue generated by block builders through the reordering, insertion, or censorship of transactions within a block, essentially imposing a hidden tax on users. According to external estimates, MEV revenues can reach tens of millions of dollars on certain networks, such as Arbitrum, and exceed $500 million on Ethereum.

Flare's proposal is divided into three stages, with the first stage involving the transfer of block building from individual validators to a designated builder operated by the Flare Entity. The second stage would integrate block building into Flare Confidential Compute, making the process publicly auditable. The third stage would merge the builder and proposer into a single entity, transitioning existing validators to a verification role. The proposal also introduces the Flare Income Reinvestment Entity (FIRE), which would collect revenue from various protocol sources, including attestation fees, FAsset and Smart Account fees, confidential compute fees, and captured MEV.

FIRE's primary objective is to reduce 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% and a decrease in the hard cap from 5 billion to 3 billion tokens per year. Additionally, a 20-fold increase in the base gas fee, from 60 gwei to 1,200 gwei, would raise the estimated annual FLR burn from approximately 7.5 million to 300 million at current transaction volumes.

Notably, even with this increase, a standard Flare transaction would cost only a fraction of a cent. Flare has strong ties to the XRP ecosystem, having distributed its initial token supply through an airdrop to XRP holders in 2023. Its FAssets system has produced over 150 million FXRP, aiming to bring smart contract functionality to assets on blockchains like XRPL that do not natively support it. As of late March 2026, the network reports over $160 million in total value locked, with more than 887,000 active addresses.