Flare proposes governance to cut FLR inflation by 40%

Flare (FLR), an XRP-based DeFi ecosystem, has proposed a governance change to identify Maximal Extractable Value (MEV) at the protocol level and lower annual FLR inflation from 5% to 3%, CoinDesk reported. MEV refers to the practice where entities like miners or validators, who can produce blocks or reorder transactions, intervene to maximize their profits. If the proposal passes, the changes would take effect immediately. These include reducing the annual FLR issuance cap from five billion to three billion and increasing the base gas fee 20-fold from 60 gwei to 1,200 gwei. This fee hike is expected to increase the annual amount of FLR burned from approximately 7.5 million to 300 million.