On Thursday, Flare put forth a governance proposal that would make it a pioneer among layer-1 blockchains in capturing maximal extractable value at the protocol level, rather than allowing it to benefit a select few specialized actors who capitalize on transaction ordering across major chains. This value, known as MEV, is generated when block builders reorder, insert, or censor transactions within a block, effectively imposing a hidden tax on ordinary users through front-running, sandwich attacks, and arbitrage. Estimates suggest that MEV revenues can reach tens of millions of dollars on networks like Arbitrum, over $500 million on Ethereum, and up to $1 billion on Solana. The proposed three-stage plan would redirect these revenues into Flare's token economics.

The first stage involves transferring block building from individual validators to a designated entity, with a fallback option to the current model if the builder is unavailable. The second stage moves block building to Flare Confidential Compute, making the process publicly auditable. The third stage merges the builder and proposer into a single entity, shifting validators to a verification role.

Additionally, the proposal introduces FIRE, the Flare Income Reinvestment Entity, which would collect revenue from various protocol sources, including fees, and use it to buy back and burn FLR tokens, thereby reducing the token supply. Upon approval, several changes would take effect immediately, including a reduction in annual FLR inflation from 5% to 3%, a hard cap decrease from 5 billion to 3 billion tokens per year, and a 20-fold increase in the base gas fee, which would raise the estimated annual FLR burn from approximately 7.5 million to 300 million at current transaction volumes.

Despite the 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 through an airdrop to XRP holders in 2023, Flare's FAssets system has produced over 150 million FXRP, enabling smart contract functionality for 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.