Miner Extractable Value

Definition ∞ Miner Extractable Value (MEV) represents the profit a blockchain miner can obtain by strategically including, excluding, or reordering transactions within a block. This value is derived from the miner’s ability to exploit information asymmetry or transaction ordering for personal gain. MEV is a complex economic phenomenon within proof-of-work and proof-of-stake consensus mechanisms.
Context ∞ Miner Extractable Value is a topic of considerable debate within the cryptocurrency community, particularly concerning its fairness and impact on transaction fees. Discussions often address sophisticated MEV extraction strategies, such as front-running and sandwich attacks, and their implications for retail users. Ongoing research explores mechanisms to mitigate negative MEV effects and distribute its benefits more equitably.

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→Cryptoeconomic Security

→Miner Extractable Value

→Formal Verification

Application-Layer Mechanism Design Eliminates Miner Arbitrage and Ensures Strategy-Proof AMMs

A new AMM mechanism uses batch processing and a constant potential function to achieve provable strategy-proofness, eliminating MEV at the application layer.

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→Transaction Content Destruction

→Ledger Function Design

→Protocol Mechanism Design

MAD-DAG Ledger Function Secures Consensus against MEV-driven Selfish Mining

The Mutually-Assured-Destruction DAG protocol introduces a novel ledger function that destroys competing block content, fundamentally eliminating MEV-based selfish mining incentives.

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→Transaction Ordering Fairness

→Practical Latency

→Consensus Protocol Security

DAG Consensus Model Secures Blockchain against MEV-driven Selfish Mining

Introducing the first tractable model for selfish mining on a DAG, this protocol raises the security threshold, enabling robust, practical high-MEV consensus.

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→Incentive Compatibility

→Selfish Mining Resistance

→Petty Compliant Miners

Mutual-Assured-Destruction DAG Secures Consensus against MEV-Driven Selfish Mining

MAD-DAG introduces a new incentive-aligned DAG structure, raising the selfish mining profitability threshold from zero to over 11%.

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→Block Producer Incentives

→Incentive Compatibility

→Mechanism Design Theory

On-Chain Randomness Enables Fair Transaction Inclusion without Miner Manipulation

Introducing rTFM, a mechanism using on-chain randomness to decouple miner incentives from fair transaction inclusion, unlocking equitable blockspace access.

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→Strategy Proofness

→Incentive Compatibility

→Arbitrage Resilience

Application-Layer Mechanism Design Achieves Strategy-Proof Automated Market Makers

A new AMM design uses a constant potential function to batch transactions, proving arbitrage resilience and strategy proofness against MEV.

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→EIP-1559 Analysis

→Incentive Compatibility

→Off-Chain Collusion

Formal Impossibility Limits Blockchain Fee Mechanism Design, Forcing Trade-Offs

New mechanism design research proves an impossibility for fully incentive-compatible transaction fee protocols, establishing a fundamental trade-off.

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→Game-Theory

→Blockchain Economics

→Arbitrage Resilience

Strategy-Proof Mechanism Design Eliminates Automated Market Maker MEV

This research introduces a batch-processing AMM mechanism that maintains a constant potential function, provably eliminating miner arbitrage and enforcing strategy-proof trading.

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→Risk-Free Profit

→Transaction Sequencing

→Decentralized Exchanges

Batch-Processing AMM Design Eliminates MEV and Guarantees Arbitrage Resilience

A novel AMM mechanism processes all block transactions in a single batch, mathematically eliminating block producer arbitrage and mitigating MEV extraction.

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→Mechanism Design

→Constant Potential Function

→Batch Processing

Batch-Processing Mechanism Design Eliminates AMM Arbitrage and MEV Opportunities

This application-layer mechanism achieves arbitrage resilience by batching all transactions, fundamentally removing miner extractable value from AMMs.

Miner Extractable Value

Application-Layer Mechanism Design Eliminates Miner Arbitrage and Ensures Strategy-Proof AMMs

MAD-DAG Ledger Function Secures Consensus against MEV-driven Selfish Mining

DAG Consensus Model Secures Blockchain against MEV-driven Selfish Mining

Mutual-Assured-Destruction DAG Secures Consensus against MEV-Driven Selfish Mining

On-Chain Randomness Enables Fair Transaction Inclusion without Miner Manipulation

Application-Layer Mechanism Design Achieves Strategy-Proof Automated Market Makers

Formal Impossibility Limits Blockchain Fee Mechanism Design, Forcing Trade-Offs

Strategy-Proof Mechanism Design Eliminates Automated Market Maker MEV

Batch-Processing AMM Design Eliminates MEV and Guarantees Arbitrage Resilience

Batch-Processing Mechanism Design Eliminates AMM Arbitrage and MEV Opportunities

Incrypthos

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