Flare proposes protocol-level MEV capture and significant reduction of FLR inflation.

According to CoinDesk, Flare has announced a governance proposal to capture the Maximum Extractable Value (MEV) at the protocol layer, with a newly established entity, FIRE, responsible for revenue repatriation and FLR token buybacks and burns. The proposal includes a three-phase block-building refactoring: first, the Flare Entity designates block builders; second, Flare Confidential Compute is introduced for public auditing; and finally, builders and proposers are merged, with original validators becoming validators. The proposal also reduces the annual FLR inflation rate from 5% to 3%, the annual hard cap from 5 billion to 3 billion, increases the base gas fee to 1,200 gwei, and projects an annual burn of 300 million FLR. These measures aim to optimize the network's economic model and improve protocol transparency and security.