Definition ∞ Protocol-enforced MEV (Maximal Extractable Value) refers to mechanisms embedded within a blockchain’s protocol design that allow or dictate how block producers can extract value beyond standard transaction fees. This can involve specific rules for transaction ordering or inclusion that benefit the proposer. Such designs aim to formalize and potentially democratize MEV extraction, contrasting with ad-hoc, off-chain methods.
Context ∞ The implementation of protocol-enforced MEV is a subject of active research and debate, particularly concerning its impact on network fairness and decentralization. Discussions often revolve around whether these mechanisms centralize power towards block producers or offer a more transparent and equitable distribution of MEV profits. Analyzing these designs is critical for understanding the economic incentives within blockchain networks and their potential effects on transaction costs and censorship resistance.
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