MEV sharing refers to the distribution of Miner Extractable Value (MEV) among various network participants, beyond just block producers. MEV represents the profit opportunities available to block producers from their ability to order, censor, or insert transactions within a block. Sharing mechanisms aim to democratize access to these profits, potentially reducing centralization risks. This practice seeks to distribute value more broadly within the ecosystem.
Context
News about MEV sharing frequently highlights efforts to mitigate the negative externalities of MEV extraction, such as increased transaction costs or network instability. Debates often concern the optimal methods for distribution and the overall impact on network fairness and decentralization. The evolution of MEV sharing protocols remains a significant area of research and development in blockchain economics.
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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