In a bid to redefine the blockchain landscape, Flare has unveiled a comprehensive governance proposal that would enable the network to capture maximal extractable value (MEV) at the protocol level, a move that could significantly alter the dynamics of transaction ordering and revenue distribution. This innovative approach would divert MEV, currently dominated by a select group of specialized actors, into the network's token economy. External assessments suggest that MEV revenues can reach tens of millions of dollars on smaller networks and exceed $1 billion on larger ones like Solana. The proposed three-stage plan would redirect these revenues, transforming Flare into one of the first layer-1 blockchains to achieve this feat.

Initially, block building would transition from individual validators to a designated entity operated by the Flare organization, with provisions for a fallback to the current system if needed. The subsequent stages involve integrating block building into Flare Confidential Compute for enhanced transparency and eventually merging the builder and proposer roles, relegating validators to a verification capacity. A key component of this proposal is the establishment of FIRE (Flare Income Reinvestment Entity), tasked with accumulating revenues from various protocol sources, including fees for attestation, FAsset and Smart Account usage, confidential compute, and the captured MEV. FIRE's primary objective is to decrease the FLR token supply through strategic buybacks and burns on the open market.

Upon approval, several modifications would be implemented immediately, 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, the base gas fee would increase 20-fold, from 60 gwei to 1,200 gwei, which is expected to significantly raise the estimated annual FLR burn, from approximately 7.5 million to 300 million, based on current transaction volumes. Notably, even with this increase, the cost of a standard Flare transaction would remain a fraction of a cent. With its roots deeply embedded in the XRP ecosystem, Flare has previously distributed its initial token supply to XRP holders and has developed the FAssets system, which enables smart contract functionality for assets on non-compatible blockchains like XRPL, resulting in the creation of 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, underscoring its growing presence and potential for further expansion.