In a recent governance proposal, Flare aims to become one of the first layer-1 blockchains to capture maximal extractable value at the protocol level, rather than allowing it to accrue to a select group of specialized actors. This value, known as MEV, is generated through the reordering, insertion, or censorship of transactions within a block, and is typically exploited by external searchers and builders, resulting in a hidden tax on ordinary users. By redirecting MEV revenue into the protocol's token economics, Flare's three-stage proposal seeks to create a more equitable and sustainable ecosystem. The plan involves transferring block building responsibility from individual validators to a designated entity, initially operated by the Flare Entity, with a fallback mechanism in place.

The process would then be made publicly auditable through Flare Confidential Compute, and eventually, the builder and proposer would be merged into a single entity, transitioning existing validators to a verification role. Additionally, the proposal introduces the Flare Income Reinvestment Entity, or FIRE, which would collect revenue from various protocol sources, including attestation fees, FAsset and Smart Account fees, confidential compute fees, and captured MEV. FIRE's primary objective is to reduce the FLR token supply through open-market buybacks and burns. Upon approval, several changes would take effect, including a reduction in annual FLR inflation from 5% to 3%, a decrease in the hard cap from 5 billion to 3 billion tokens per year, and a significant increase in the base gas fee, from 60 gwei to 1,200 gwei.

This would result in a substantial rise in estimated annual FLR burn, from approximately 7.5 million to 300 million, at current transaction volumes. With its roots in the XRP ecosystem, Flare has established a strong presence, having distributed its initial token supply through an airdrop to XRP holders in 2023.

The network'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 boasts over $160 million in total value locked, with more than 887,000 active addresses.