In a groundbreaking move, Flare has introduced a governance proposal that would make it a pioneer in capturing maximal extractable value (MEV) at the protocol level, rather than allowing it to be controlled by a select few. This approach would redirect MEV revenue into the protocol's token economy, potentially generating tens of millions of dollars in revenue. The proposal outlines a three-stage process to achieve this, starting with the transfer of block building from individual validators to a designated entity.
The process would then become publicly auditable, and eventually, the builder and proposer would merge into a single entity, relegating existing validators to a verification role. Additionally, a new entity called FIRE would be established to collect revenue from various protocol sources, including MEV, and use it to buy back and burn FLR tokens, thereby reducing the token supply. If approved, 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, resulting in a significant rise in estimated annual FLR burn.
With its roots in the XRP ecosystem and a unique FAssets system, Flare aims to bring smart contract functionality to assets on blockchains like XRPL, and has already reported over $160 million in total value locked and more than 887,000 active addresses as of late March 2026.