Flare Proposes Cutting Annual Token Inflation to 3% From 5%

Source

Uk Jin

Summary

Flare (FLR) said it is pursuing a governance overhaul that would lower the annual token inflation rate to 3%% from 5%% and reduce the cap on token issuance.
The move is intended to improve token value stability by reducing the number of tokens released into the market.
The proposal also includes establishing a Flare Revenue Reinvestment Vehicle to use the network’s MEV revenue for token buybacks and burns.

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Flare, a decentralized finance protocol, has proposed a governance overhaul to sharply reduce token inflation.

CoinDesk reported on April 10 that Flare plans to cut its annual token inflation rate to 3% from 5% and lower the cap on token issuance. The move is intended to support value stability by reducing the number of tokens entering the market.

The proposal also includes establishing a Flare Revenue Reinvestment Vehicle. Under the plan, the protocol would directly capture maximal extractable value, or MEV, generated on the network and use the proceeds for token buybacks and burns.