Definition ∞ A MEV-Boost auction is a mechanism used in Ethereum’s proof-of-stake network where validators delegate block construction to external block builders. These builders compete by submitting bids to validators, offering a portion of the Maximal Extractable Value (MEV) they can capture from ordering transactions within a block. The validator selects the most profitable block.
Context ∞ MEV-Boost auctions are a significant component of the post-Merge Ethereum ecosystem, aiming to democratize MEV extraction and reduce centralization risks among validators. While they optimize validator revenue, ongoing discussions focus on the fairness of the auction process and potential for builder centralization. This system directly impacts transaction ordering and network efficiency.
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