Definition ∞ MEV profit, or Maximal Extractable Value profit, refers to the economic gains that block producers or validators can extract by strategically ordering, censoring, or inserting transactions within a block. This value is derived from various on-chain activities, such as arbitrage, liquidations, and front-running. It represents a significant incentive within blockchain ecosystems. This is a form of value extraction.
Context ∞ The pursuit of MEV profit has become a prominent topic in blockchain research and development, particularly with the rise of proof-of-stake networks. Discussions often center on the ethical implications of MEV, its impact on network fairness, and the implementation of protocols designed to mitigate its negative effects or redistribute its value to users.