Flare Network

Flare Proposes Protocol-Level MEV Capture and Significant Reduction of FLR Inflation

According to CoinDesk, Flare has unveiled a governance proposal aiming to capture maximum extractable value (MEV) at the protocol level, with a newly established entity—FIRE—responsible for revenue recycling and FLR token buybacks and burns. The proposal outlines a three-phase re-architecture of block building: first, block builders will be designated by the Flare Entity; second, Flare Confidential Compute will be introduced to enable public auditability; and finally, block builders and proposers will be merged, while existing validators transition to a pure validation role. Additionally, the proposal reduces the annual FLR inflation rate from 5% to 3%, lowers the annual hard cap from 5 billion to 3 billion tokens, and raises the base gas fee to 1,200 gwei—projecting an annual burn volume of 300 million tokens. These measures aim to optimize the network’s economic model and enhance protocol transparency and security.