Overview
- Flare published a governance proposal to redirect maximal extractable value into the protocol’s economics through a new revenue vehicle called FIRE, with the measure now in a formal review window ahead of a token holder vote.
- MEV is money made by reordering or inserting transactions—such as liquidations and arbitrage—that today mostly goes to outside searchers and builders, and Flare wants the protocol to capture that revenue and reinvest it for FLR holders.
- If approved, annual inflation would fall from 5% to 3% and the yearly issuance cap would drop from 5 billion to 3 billion FLR, while a base gas fee hike from 60 to 1,200 gwei could lift estimated yearly burns from about 7.5 million to roughly 300 million at current activity, with typical transactions still costing under a cent.
- The proposal lays out a three-step shift in block production that moves building to a designated builder, then into Flare Confidential Compute for public auditability, and finally merges builder and proposer roles as validators transition to verifiers.
- Reward and fee flows would tilt toward P Chain staking and set a minimum 20% fee share for infrastructure operators, with Flare citing more than $160 million in TVL, about 150 million FXRP minted with over 85% deployed, and roughly 880,000 active addresses as context for the overhaul.