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

According to CoinDesk, Flare has announced a governance proposal to capture Maximum Extractable Value (MEV) at the protocol layer, with a newly established entity, FIRE, responsible for revenue reinvestment and the buyback and burn of FLR tokens.

The plan includes a three-phase block construction overhaul: first, block builders will be designated by the Flare Entity, then Flare Confidential Compute will be introduced for public auditing, and finally, builders will be merged with proposers, with original validators transitioning to a verification role. The proposal also reduces the annual inflation rate of FLR from 5% to 3%, lowers the annual hard cap from 5 billion to 3 billion tokens, increases the base gas fee to 1,200 gwei, and is expected to raise the annual burn amount to 300 million tokens. These measures aim to optimize the network's economic model and enhance the transparency and security of the protocol.