An Execution Payload Auction is a process where block builders bid to include a specific set of transactions, known as an execution payload, into a blockchain block. This bidding mechanism determines which builder’s payload is ultimately added to the chain by the block proposer. It allows for the efficient ordering and processing of transactions based on economic incentives. The auction aims to maximize the value captured from block space.
Context
Execution Payload Auctions are a critical component of the proposer-builder separation model in proof-of-stake blockchains, particularly Ethereum, to mitigate certain forms of Miner Extractable Value (MEV). Current discussions focus on optimizing these auctions to ensure fair access, transparency, and censorship resistance. Future improvements seek to further decentralize the building process and reduce potential centralizing forces within the block production pipeline.
The Execution Ticket mechanism unbundles execution rights from consensus, transforming Maximal Extractable Value into a native, burnable asset to secure the network.
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