Flare’s governance proposal stages block building off validators to capture protocol-level MEV, creates FIRE (Flare Income Reinvestment Entity) to collect attestation, FAsset, Smart Account, confidential compute fees and captured MEV for open-market FLR buybacks and burns, and immediately cuts annual FLR inflation from 5% to 3% with a hard cap of 3B tokens/year. It also raises the base gas fee 20x (60→1,200 gwei), which the proposal projects will increase annual FLR burns from ~7.5M to ~300M at current volumes; typical transactions would still cost a fraction of a cent. Background: Flare began via a 2023 XRP airdrop, its FAssets have produced 150M+ FXRP, and the network reported >$160M TVL and ~887,000 active addresses as of late March 2026.

The proposal creates a revenue-collecting entity (FIRE) that will use attestation, FAsset, Smart Account, confidential compute fees and captured MEV for open-market FLR buybacks and burns; it also immediately reduces annual FLR inflation from 5% to 3% and sets a 3B tokens/year hard cap, while a 20x base gas fee increase is projected to raise annual burns from ~7.5M to ~300M—facts that directly reduce net token issuance and increase on-chain buyback/burn demand. The summary-provided TVL (> $160M), 150M+ FXRP, and ~887,000 active addresses establish network usage supporting the burn projections.