In a groundbreaking move, Flare has put forth a governance proposal aimed at capturing maximal extractable value (MEV) directly within the protocol, rather than allowing it to benefit a limited group of specialized actors who currently profit from manipulating transaction orders across major blockchain networks. This MEV, generated through the reordering, insertion, or censorship of transactions within blocks, is estimated to yield tens of millions of dollars annually on networks like Arbitrum, and as much as $1 billion on Solana. The proposal outlines a three-stage plan to redirect this revenue into Flare's token economy.

Initially, block building would transition from individual validators to a designated entity operated by Flare, with a fallback mechanism in place. The process would then become publicly auditable through Flare Confidential Compute, and finally, the builder and proposer roles would merge, relegating existing validators to a verification capacity. Additionally, the proposal introduces FIRE (Flare Income Reinvestment Entity), tasked with collecting revenue from various protocol sources, including fees from attestation, FAsset and Smart Accounts, confidential computing, and the captured MEV, to buy back and burn FLR tokens. Following approval, several key changes would be implemented, 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.

Furthermore, a substantial increase in the base gas fee, from 60 gwei to 1,200 gwei, is expected to significantly raise the estimated annual FLR burn, from approximately 7.5 million to 300 million, based on current transaction volumes. Notably, despite this increase, the cost of a standard Flare transaction would remain minimal. With its roots deeply entrenched in the XRP ecosystem, Flare's proposal comes after distributing its initial token supply via an airdrop to XRP holders in 2023.

The network's FAssets system has successfully introduced smart contract functionality to assets on non-native blockchains like XRPL, producing over 150 million FXRP. As of late March 2026, Flare reports a total value locked of over $160 million, with more than 887,000 active addresses, underscoring the network's growing presence.