Definition ∞ An MEV mitigation scheme is a set of protocol-level or application-level designs aimed at reducing or redistributing Miner Extractable Value (MEV), which arises from the ability of block producers to reorder, insert, or censor transactions. These schemes seek to limit the unfair advantages gained by certain participants or to return MEV profits to users or the network. They promote a more equitable transaction ordering environment.
Context ∞ MEV mitigation is a highly active area of research and development in the blockchain space, particularly for networks with high transaction volume and complex DeFi activity. The current discussion involves various approaches, such as proposer-builder separation (PBS), batch auctions, and encrypted mempools, each with its own trade-offs regarding decentralization and efficiency. Future advancements will likely involve a combination of these strategies to address the complex dynamics of MEV effectively.
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