FLR Tokenomics Overhaul: Cut Inflation to 3%, Capture MEV, Route Burns via FIRE

Flare has submitted FLR tokenomics to overhaul supply and value flow, aiming to cut inflation and capture MEV at the protocol level. Under the proposal, FLR annual inflation would drop from 5% to 3% (from ~5B to ~3B tokens per year), alongside the launch of the Flare Income Reinvestment Entity (FIRE) to route protocol revenue into ecosystem incentives, token buybacks, and token burns. The core change moves block-building toward a protocol-driven builder model, so more MEV stays on Flare instead of external MEV searchers. It also raises the minimum gas fee from 60 gwei to 1,200 gwei, which the plan estimates could lift annual FLR burns from ~7.5M to ~300M at current activity. Reward allocation would tilt toward P Chain staking, while infrastructure entities are guaranteed at least 20% of fee-derived revenue. Ahead of the vote (notice April 9–16; voting April 17–24), Flare reports ~880,000 active addresses and TVL around ~$165M, with over 150M FXRP minted and largely deployed in DeFi. If approved, traders should monitor how this FLR tokenomics shift changes burn dynamics, staking demand, and near-term user behavior.