XRP adjacent Flare proposes protocol-level MEV capture and 40% inflation cut
CoinDesk
Flare has proposed a new governance model to capture protocol-level MEV revenue and reduce annual token inflation from 5% to 3%.Summary
Flare has introduced a governance proposal to overhaul its token economics by capturing maximal extractable value (MEV) directly at the protocol level. Currently, MEV on most blockchains is extracted by external searchers and builders; Flare intends to redirect this revenue to a new entity called FIRE (Flare Income Reinvestment Entity), which will use the funds to buy and burn FLR tokens. The proposal also includes a significant reduction in annual token inflation, dropping from 5% to 3%, and a 20-fold increase in base gas fees to further stimulate token burns. These changes aim to enhance the protocol's sustainability and shift block building responsibilities to a more auditable system.
(Source：CoinDesk)