Flare proposes protocol MEV capture and 40% inflation cut in FLR tokenomics overhaul
Crypto Briefing
Flare is proposing a major tokenomics overhaul to capture MEV and reduce annual inflation by 40% to improve value for token holders.Summary
Flare has introduced a governance proposal aimed at restructuring its tokenomics by capturing maximal extractable value (MEV) at the protocol level. The plan includes a 40% reduction in annual FLR inflation and the creation of the Flare Income Reinvestment Entity (FIRE) to reinvest captured value into token buybacks and burns. Additionally, the proposal suggests transitioning to a protocol-owned block building model and increasing base gas fees to boost the network's deflationary mechanics. These measures seek to better align network activity with FLR value while supporting ecosystem infrastructure.
(Source：Crypto Briefing)