Protocol-Level MEV, or Miner Extractable Value, refers to the value captured or influenced directly by the design or rules of a blockchain protocol itself, rather than solely by external actors. This can involve mechanisms within the protocol that inherently create opportunities for validators or block producers to gain extra value from transaction ordering. It represents a systemic aspect of value extraction.
Context
News concerning blockchain economic security and protocol upgrades frequently discusses protocol-level MEV. Reports on changes to consensus mechanisms or transaction fee structures often analyze how these adjustments affect the potential for value extraction by block producers. Understanding this concept is crucial for assessing the long-term fairness and efficiency of decentralized networks.
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