Extraction rate, in the context of digital assets, typically refers to the speed or efficiency at which resources or value are obtained from a blockchain system. This can relate to the rate at which new tokens are mined or minted, or the speed at which value is extracted through arbitrage or other on-chain activities. It quantifies the pace of value generation or capture within a specific protocol. Understanding this rate is important for assessing economic models.
Context
News often cites extraction rates when discussing the profitability of mining operations or the efficiency of decentralized finance strategies. Variations in this rate can signal changes in network activity, resource scarcity, or competitive pressures. Monitoring extraction rates helps market participants evaluate the economic health and sustainability of various digital asset ecosystems.
This dynamic mechanism, inspired by EIP-1559, enshrines a variable MEV extraction rate to formally balance user and validator incentives for system robustness.
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