Definition ∞ Protocol MEV Capture refers to the design choice where a blockchain protocol or decentralized application actively redirects or internalizes the value typically extracted by block producers through Miner Extractable Value. Instead of private gain, this captured value can be redistributed to users, stakers, or the protocol’s treasury. It aims to democratize the benefits derived from transaction ordering advantages. This approach enhances fairness within the ecosystem.
Context ∞ The strategy of Protocol MEV Capture is a growing area of interest as the blockchain community seeks to mitigate the negative externalities of MEV. Discussions center on various implementation methods, such as batch auctions or proposer-builder separation designs that reallocate MEV. Future developments include more sophisticated mechanisms for value redistribution and the integration of MEV capture into a broader range of decentralized finance applications.
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