Flare Network is drawing renewed attention from the crypto community as a major governance proposal heads to a vote starting tomorrow, April 11, with voting open through April 24.
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The proposal would fundamentally restructure how the network handles block building, capture maximal extractable value (MEV) at the protocol level, and cut annual token inflation by 40%.
If approved, Flare would become one of the first layer-1 blockchains to internalize MEV revenues — value that on most networks flows to a small number of specialized actors who profit from transaction ordering at the expense of ordinary users.
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What Is MEV and Why Does It Matter?
MEV refers to the revenue that block builders extract by reordering, inserting, or censoring transactions within a block. On most blockchains, this value is captured by external searchers and builders who effectively impose a hidden tax on users through front-running, sandwich attacks, and arbitrage.
External estimates place annual MEV revenues at tens of millions of dollars on networks like Arbitrum, upwards of $500 million on Ethereum, and as much as $1 billion on Solana. Flare's proposal aims to redirect that type of revenue back into the protocol's own token economics rather than leaving it on the table for third parties.
A Three-Stage Block Building Overhaul
The proposal lays out a phased redesign of how blocks are constructed on Flare:
Stage One: Block building moves from individual validators to a designated builder, initially operated by the Flare Entity, with a fallback to the current model if the builder is unavailable.
Stage Two: Block building transitions into Flare Confidential Compute, making the process publicly auditable while preserving transaction privacy.
Stage Three: The builder and proposer roles merge into a single entity, shifting existing validators to a verification role.
This staged approach is designed to progressively decentralize and secure the MEV capture mechanism while minimizing disruption to the network.
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Introducing FIRE: Buy and Burn for FLR
Central to the proposal is the creation of FIRE — the Flare Income Reinvestment Entity. FIRE would collect revenue from multiple protocol sources and use it to conduct open-market buybacks and burns of $FLR tokens. Revenue streams feeding into FIRE would include:
Captured MEV revenues
Attestation fees
FAsset and Smart Account fees
Confidential compute fees
FIRE's primary mandate is straightforward: reduce the circulating supply of FLR over time through systematic burns funded by real protocol revenue.
Immediate Changes Upon Approval
Several changes would take effect immediately if the proposal passes. Annual FLR inflation would drop from 5% to 3%, with the hard cap reduced from 5 billion tokens per year to 3 billion.
The base gas fee would increase 20-fold, from 60 gwei to 1,200 gwei, raising the estimated annual FLR burn from roughly 7.5 million tokens to 300 million at current transaction volumes.
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Despite the gas fee increase, Flare notes that a standard transaction would still cost a fraction of a cent — keeping the network accessible for everyday use.
Flare's XRP Roots and Network Growth
Flare has deep ties to the XRP ecosystem, having distributed its initial token supply through an airdrop to XRP holders in 2023. Its FAssets system — which has produced over 150 million FXRP — is designed to bring smart contract functionality to assets on blockchains like XRPL that do not natively support it.
As of late March 2026, the network reports over $160 million in total value locked and more than 887,000 active addresses, reflecting steady growth as the ecosystem matures.
What's Next
With voting opening tomorrow and running through April 24, FLR holders will have a direct say in whether the network adopts one of the most ambitious tokenomics overhauls seen on a layer-1 blockchain.
The outcome could set a precedent for how other chains approach MEV — shifting it from a problem to be mitigated into a protocol-level revenue source.
