In a bid to become a pioneer in layer-1 blockchains, Flare has unveiled a governance proposal that seeks to capture maximal extractable value (MEV) directly at the protocol level. This move would redirect revenue from a select group of specialized actors to the network itself, potentially generating tens of millions of dollars in revenue.
MEV refers to the income that block builders earn by manipulating transaction ordering within blocks, often at the expense of ordinary users. By taking control of MEV, Flare's proposal would channel this revenue into its native token economics. The three-stage plan involves transferring block building responsibilities from individual validators to a designated entity, making the process publicly auditable, and eventually merging the builder and proposer into a single entity.
Additionally, the proposal introduces the Flare Income Reinvestment Entity (FIRE), tasked with collecting revenue from various protocol sources and utilizing it to buy back and burn FLR tokens. Upon approval, the proposal would immediately reduce annual FLR inflation from 5% to 3% and decrease the hard cap from 5 billion to 3 billion tokens per year.
The base gas fee would also increase 20-fold, resulting in a significant rise in estimated annual FLR burn. With its roots in the XRP ecosystem, Flare's FAssets system has already produced over 150 million FXRP, demonstrating its potential to bring smart contract functionality to assets on non-native blockchains.
As of late March 2026, the network boasts over $160 million in total value locked and more than 887,000 active addresses.