Definition ∞ Rent-Seeking describes the economic practice of increasing one’s share of existing wealth without creating new wealth. This occurs by manipulating the economic environment, often through political influence or market power, rather than through productive activity. In digital asset markets, it can manifest as extracting value from protocol design or transaction ordering. It often results in economic inefficiency.
Context ∞ Rent-Seeking is a significant concern in the blockchain ecosystem, particularly in discussions surrounding Maximal Extractable Value (MEV) and centralized services. The debate focuses on how protocol designs can minimize opportunities for non-productive value extraction by validators, miners, or other intermediaries. Future developments include implementing mechanisms like Proposer-Builder Separation and fair ordering protocols to reduce rent-seeking behaviors and promote equitable participation.
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