Flare (FLR) Proposes Major Governance Overhaul with MEV Capture and 40% Inflation Cut
Flare proposed a governance overhaul to capture maximal extractable value (MEV) at the protocol level and redirect it from external searchers and builders to the network itself. The plan introduces a three-stage redesign of block building and a new Flare Income Reinvestment Entity (FIRE) to channel MEV and other protocol revenues into FLR buybacks and token burns, while cutting annual inflation to 3%.
Key Tokenomics Changes
Annual FLR inflation would drop to 3% from 5%, with the hard cap cut to 3 billion tokens per year from 5 billion. A 20-fold increase to the base gas fee, from 60 gwei to 1,200 gwei, would raise estimated annual FLR burn from roughly 7.5 million to 300 million at current transaction volumes. Even after the increase, a standard Flare transaction would cost a fraction of a cent.
Governance Timeline
Flare scheduled the governance notice period from April 9 to April 16, with voting between April 17 and April 24.
Network Metrics
The network reports over $160 million in total value locked as of late March 2026, with more than 887,000 active addresses. The network confirmed around 150 million FXRP minted, with over 85% deployed in DeFi use.
Price Performance
Flare (FLR) traded up 3.2% against the U.S. dollar during the 1-day period ending at 8:00 AM E.T. on April 10th, with a market cap of $653.62 million and $5.50 million worth of Flare traded on exchanges in the last day.
Strategic Expansion Plans
Flare Network CEO Hugo Philion confirmed plans to add Bitcoin support by the end of 2026, leveraging Flare's Trusted Execution Environments (TEE) and XRPFi model to bring BTC into its DeFi ecosystem.