In a recent governance proposal, Flare outlined a plan to become one of the first layer-1 blockchains to capture maximal extractable value (MEV) at the protocol level, rather than allowing it to benefit a select group of specialized actors. MEV refers to the revenue generated by reordering, inserting, or censoring transactions within a block, which is typically exploited by external searchers and builders, imposing a hidden tax on ordinary users through front-running, sandwich attacks, and arbitrage. The proposal consists of three stages, starting with the transfer of block building from individual validators to a designated entity, followed by the integration of block building into Flare Confidential Compute, and ultimately merging the builder and proposer into a single entity. The proposal also introduces FIRE, the Flare Income Reinvestment Entity, which will collect revenue from various protocol sources, including attestation fees, and use it to buy back and burn FLR tokens, reducing the token supply.
Key changes would take effect immediately after approval, 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, resulting in a substantial rise in estimated annual FLR burn. With its roots in the XRP ecosystem, Flare's FAssets system has enabled smart contract functionality for assets on non-native blockchains, such as XRPL, and has generated over 150 million FXRP.
As of late March 2026, the network boasts over $160 million in total value locked and more than 887,000 active addresses.