XRP Adjacent Flare Proposes Protocol-Level MEV and 40% Inflation Cut

Apr 10, 2026

< 1 min read

by Coin Edition

for CoinEdition

XRP Adjacent Flare Proposes Protocol-Level MEV and 40% Inflation Cut

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Mar 27, 2026: Flare (FLR) proposed FIP.16 to overhaul tokenomics — cut annual inflation from 5% to 3% (40% reduction), raise base gas fees 20x to increase FLR token burns, and introduce protocol-level MEV/value capture. Proposal creates Flare Income Reinvestment Entity (FIRE) to collect revenue and fund FLR buybacks; governance vote starts Apr 17 and requires 50% approval, which could shift FLR to non-inflationary then deflationary. FAssets changes (stablecoin collateral, Core Vault) reduce FLR’s ecosystem role, a key adoption/demand consideration for DeFi, governance, and market impact.

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XRP-adjacent Flare proposes to restructure FLR tokenomics by reducing the annual inflation rate from 5% to 3%.
Making FAssets safer through stablecoin collateral and Core Vault reduced FLR’s role in the ecosystem.
The proposal needs 50% of the votes; if passed, FLR could shift to non-inflationary, then deflationary, via FIRE.

On March 27, 2026, Flare (FLR), the XRP-adjacent Layer 1 network known for its FAssets system, which brings trustless XRP representations like FXRP onto EVM-compatible smart contracts and DeFi, proposed FIP.16, a major tokenomics overhaul focused on protocol-level value capture.

The proposal aims to cut FLR annual inflation from 5% to 3% (a 40% reduction), raise base gas fees 20 times to boost token burns, and create the Flare Income Reinvestment Entity (FIRE) to collect revenue and fund FLR buybacks. Voting will take place from April 17 to …

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