On Thursday, Flare unveiled a governance proposal that would position it as a pioneer in capturing maximal extractable value at the protocol level, thereby redirecting revenue from a select group of specialized actors to the protocol itself. This move is designed to minimize the hidden tax imposed on users through front-running, sandwich attacks, and arbitrage. MEV, the revenue generated by reordering, inserting, or censoring transactions within a block, is estimated to be in the tens of millions on networks like Arbitrum, over $500 million on Ethereum, and up to $1 billion on Solana.

The proposed three-stage plan would integrate this revenue into Flare's token economics. Initially, block building would be transferred from individual validators to a designated entity, with a fallback option to the current model if needed.

The second stage involves moving block building into Flare Confidential Compute, making the process publicly auditable. The final stage merges the builder and proposer into a single entity, transitioning validators to a verification role. Additionally, the proposal introduces FIRE, an entity tasked with collecting revenue from various protocol sources, including fees, and utilizing it 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%, capping the hard limit at 3 billion tokens per year.

The base gas fee would increase 20-fold, from 60 gwei to 1,200 gwei, potentially raising 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. With its roots in the XRP ecosystem, having distributed its initial token supply to XRP holders in 2023, Flare's FAssets system has enabled smart contract functionality for assets on blockchains like XRPL, producing over 150 million FXRP. As of late March 2026, the network reports over $160 million in total value locked, with more than 887,000 active addresses.