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CryptoUpdated•Originally published 13 April 2026•Updated 13 April 2026•

1 min read

Flare Network Proposes Major FLR Tokenomics Overhaul: Cuts Inflation to 3%, Adds MEV Capture

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Key Facts

1The Flare network proposes a comprehensive overhaul of FLR tokenomics, including reducing the annual inflation rate from 10% to 5%.

2The proposal includes a mechanism to capture MEV (Maximal Extractable Value) for the benefit of token holders.

about 2 months ago

Version History

Version 1about 2 months ago

What changed: The target inflation rate was further reduced to 3% from 5%, and the FIRE framework was clarified to include a deflationary buyback-and-burn mechanism using protocol-level MEV.

The Flare network has updated its comprehensive proposal to overhaul the tokenomics of its native FLR token to ensure long-term sustainability. The revised plan now targets a reduction in the annual inflation rate to 3%, lower than the previously proposed 5% and the current 10% rate. This move is designed to significantly lessen sell-side pressure while enhancing value accrual for token holders. Furthermore, the proposal clarifies that the FIRE entity will utilize Maximal Extractable Value (MEV) and protocol revenues to execute buybacks and burns of FLR tokens on the open market. This mechanism introduces a deflationary element to the ecosystem, further aligning incentives for long-term stakeholders. The entire overhaul remains subject to a governance vote by the FLR token holder community to determine its implementation.