NotYourAverageJoe

🌋Something big is happening on @FlareNetworks 🚀 For the 1st time, network activity is being directly tied to real economic value for #FLR holders. 👉 FIP.16 introduces a system where fees, data services, and cross-chain activity can flow back into the ecosystem—reducing supply, strengthening the token, and aligning growth with usage. 🔥This is how value accrues🔥

@0xQuantic @FlareNetworks 🔥 @FlareNetworks is building FIRE: The “FLARE NETWORK REVENUE OPERATING SYSTEM” the first Layer 1 with protocol-directed block building + governed MEV mandate tied to token economics.

🚨 CRYPTO: FLARE PROPOSES PROTOCOL-LEVEL MEV CAPTURE AND 40% INFLATION CUT IN FLR TOKENOMICS OVERHAUL @FlareNetworks published a governance proposal to capture maximal extractable value at the protocol level and redirect it from external searchers and builders to the network itself. The plan would make Flare one of the first Layer 1 blockchains to capture MEV natively rather than letting it flow to specialized third-party actors. Annual $FLR inflation would drop from 5% to 3% and the hard cap would fall from 5 billion to 3 billion tokens per year. The base gas fee would increase 20-fold from 60 gwei to 1,200 gwei, raising estimated annual burn from 7.5 million FLR to 300 million, while standard transactions would still cost a fraction of a cent. The proposal creates the Flare Income Reinvestment Entity to collect protocol revenue from attestation fees, FAsset and Smart Account fees, confidential compute fees and captured MEV. FIRE's mandate is reducing FLR supply through open-market buybacks and burns.

FIP.16 doesn’t just cut @FlareNetworks inflation by 40%. It redesigns the monetary architecture. I spent the last 24h dissecting the full proposal. The headline undersells what’s actually happening. 🧵 1/7 👇

FIP 16 fundamentally changes the economics of Flare in a massive way. Some of these changes might seem small but together they matter. Inflation reduced from 5% to 3% takes away free meal tickets from Flare’s native protocols and highlights that they are a product that earns on merit, not inflation. The new “FIRE entity” earns fees that previously exclusively were directed to infrastructure providers. This includes fees from FDC requests, FAssets, Flare Smart accounts and Flare Confidential Compute. Infrastructure providers (and their delegators) will now earn 10% of fees from the Flare Data Connector (FDC) while FIRE will earn 90%. While there is a decrease in percentage distribution, FDC fees will also be increased (infra providers and their delegators will also see an increase of earned fees). Network transaction fees (gas) will increase by 20x from 25 to 500 gwei. All gas fees are burned. Typical transfer transaction cost will increase from $0.000004 to $0.00008 (still incredibly small compared to other blockchain networks). Transaction fee increase is conservatively estimated to increased to 300m FLR being burned per year from ~15m (*based on 7.5m burned in last 6 months). Flare’s EVM blocks will be built differently to counter the potential of validators harvesting MEV (rearranging transaction inside blocks to profit themselves). Blocks will be built by a single “builder” that prioritizes transactions within blocks in a fair, transparent way that also focuses on taking advantage of MEV opportunities which benefits the network. Earnings from the MEV opportunities are sent to FIRE. FIRE is an entity that earns from network protocol fees and captured MEV and uses those funds to benefit the network; such as buying and burning FLR tokens, replace inflation rewards and fund Flare Foundation activities (ie. grants, etc). Validator operators will have a minimum fee of 20% (currently they range from 2-20%). This will help prevent a race to the bottom which can negatively impact the network. Validator staking rewards on the P-chain get 5x higher reward weight than C-chain delegation and max validator node size increases from 200M to 300M FLR. This is a big incentive for real long-term staking and should mean higher rewards for delegators who stake with validators on the P-chain.

A new governance proposal is live: Introduce $FLR Value Capture Framework What it’s about: • Lower inflation: Annual inflation falls from 5% to 3%, and the yearly inflation hard cap drops from 5B FLR to 3B FLR. • Stronger fee burn: the base gas fee rises 20x, from 60 gwei to 1200 gwei, resulting in est. 300M FLR burned per year at current transaction levels. • Protocol-level revenue accrual and FIRE setup: Establish a framework to collect flows from protocol fees and captured MEV from DeFi activity on Flare with scope to further reduce annual inflation. proposals.flare.network/FIP/FIP_16.html

@0xQuantic 👀

@QuantNetworkDev I think your prayers might be heard

Guess what’s coming next week 👀

Not really an accurate statement when you can turn around and resell for the same or more. As long as there is a market full of participants willing to buy, it’s an investment that holds stable value due to the name and brand. You’re basically indirectly investing into the brand.

Italian prosecutors just uncovered that Dior pays only $57 to produce bags retailing for $2,780!!! Anyone buying “luxury” bags is an idiot 🤣

@KeneEzeala @0xQuantic Specifically this post towards the middle he mentioned the FIP proposal and when we should get it.

@KeneEzeala @0xQuantic mentioned in the next few days.

"Will Flare drop new FIP by the end of this week?" 🤔🤔🤔🤔

@sarah_n_crypto @KingKaranCrypto Once the FIP is approved, do you know how long it could take to implement? Is the team already anticipating the approval and building out the proposal already? Or is it all just in word form.

@KingKaranCrypto The value's there, what Flare does with it next will be radical.

150M XRP minted. 85% locked in DeFi. Real demand right in front of us. Wait until $FLR gets attached to this..

Making Fassets safer, by introducing stables as collateral, and more capital efficient, by introducing the core vault, massively improved Flare as a product but substantially reduced the role of FLR in the ecosystem.  The upcoming Governance proposal FUNDAMENTALLY RELINKS FLR token economics to current and expanding usage of the ecosystem.

Im working with the content team to create material to thoroughly explain the governance proposal. Will release both after the Easter break so as not to send it out into a period where many are not paying attention.

@NYCMayor I’m good, thanks. Not supporting mental illness.

Today is Trans Day of Visibility. Trans, non-binary, and gender-nonconforming people have always been here — from the hijra of India to the Diné nádleehi to the leaders who built the modern LGBTQIA+ movement here in New York. Your existence is not up for debate. Your lives are not a political issue. We’re fighting for a city where every trans New Yorker can live openly, safely, and with joy.

@projecteleven @FlareNetworks @HugoPhilion @j00sko @0xQuantic

🚨 Google has sounded the quantum alarm 🚨 Today, they released groundbreaking progress towards breaking crypto using a quantum computer. TLDR - Existing cryptography is dead. Mempool attacks are real. We must migrate to post-quantum now. Thread 🧵

Just to add to this, we think we are on track both with TEEs and with XRPFi adoption to add Bitcoin later this year.

Since February, @HugoPhilion has been breadcrumbing us about the upcoming governance proposal (FIP). The latest update from March 27th confirms one thing: it’s a behemoth. 12 pages of technical meat designed to radically change how $FLR accumulates value. What do we know for sure? - First, we are ending the "tag-along" correlation. Hugo openly admits that FLR currently moves with the broader market, completely ignoring the ecosystem’s growth. This new mechanism is designed to cut that cord once and for all. - Second, the "novel way of building a block." This is the keyword. We aren't talking about tweaking block times; we are talking about what happens inside the block on an economic level. - Third, XRPFi is the foundation. The proposal will categorically link the surge in activity on FAssets (especially XRP) directly to the demand for the $FLR token. - Lastly, inflation is just the side dish. Yes, it will be lower, but Hugo noted this is only a "small part" of the whole. The architecture is the main course. My analysis and what you should actually expect: If you think these 12 pages are a primitive proposal like "let’s burn 30% of the supply" or "let’s do market buybacks," then you clearly don’t know Hugo. He doesn't waste his time on basic mechanisms that provide a temporary pump only to leave nothing but ashes behind. I am expecting a sophisticated, refined, and - let’s be honest - complex mechanism. We are going to spend hours sitting over this document, dissecting every single sentence until that "AHA!" moment finally hits. It is exactly like the Flare Data Connector. In the beginning, nobody understood the sheer power of it until we saw how it trustlessly pulls data from other chains. This is going to be financial engineering of the highest order. We are moving toward a reality where $FLR becomes the lifeblood of XRPFi. The mechanism will likely ensure that: More transactions / More FAssets = Higher weight and value for every single $FLR token. This is not a "burn." This is an architectural enforcement of value. I am waiting for this document with coffee in hand, because I can feel that this is the moment Flare stops being a "project with potential" and becomes the bedrock of a new on-chain economy. #FlareNetwork #FLR #XRPFi #CryptoAnalysis #DeepDive

Flare Confidential Compute matters because some of the most important parts of real applications cannot live fully inside a public smart contract. You need private keys that do not leak. You need results that can still be verified onchain. You need places where sensitive logic can run safely. You need actions on external chains that follow strict rules. That is what FCC is about. TEEs give Flare a secure environment for handling private logic and sealed key management. A TEE-based FDC makes external data attestations faster and more usable. And Flare Compute Extensions open the door for developers to build custom secure compute flows on top.

The length of Flare's upcoming governance proposal isn't a red flag, it's the clearest sign it's a complete overhaul of FLR tokenomics. 12 pages means they're modeling the mechanics properly: how protocol revenue flows back, and creating that tight economic loop so growth actually accrues to holders.