MEV mitigation strategy refers to methods and protocols designed to reduce or eliminate Maximal Extractable Value (MEV) opportunities for block producers and searchers. These strategies aim to prevent harmful practices like front-running and sandwich attacks, which can negatively impact users. The objective is to create a more equitable and predictable transaction environment. Such strategies promote fairness within decentralized systems.
Context
MEV mitigation strategy development is a highly active area in blockchain research, particularly as MEV continues to be a significant source of value extraction. Proposed solutions often involve changes to transaction ordering, block building mechanisms, and fee structures. The ongoing debate concerns finding strategies that effectively curb predatory MEV without hindering network efficiency or decentralization.
A new auction mechanism for transaction bundling transforms MEV from an externality into a direct revenue stream, enhancing chain efficiency and validator incentive compatibility.
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