Briefing
This research introduces “Execution Tickets,” a novel mechanism designed to integrate Maximal Extractable Value (MEV) brokering directly into the Ethereum protocol. The proposal addresses the current paradigm where MEV extraction primarily operates as an external revenue stream for validators, often leading to inequitable value distribution and potential centralization risks. By establishing Execution Tickets as a new Ethereum native asset, the protocol gains direct control over MEV distribution, fostering a more secure and economically robust blockchain network. This innovative approach offers a path toward a more aligned and stable decentralized ecosystem.
Context
The prevailing challenge within blockchain systems, particularly Ethereum, involves Maximal Extractable Value (MEV) as an externalized phenomenon. This allows block producers to capture significant value through transaction reordering, insertion, and censorship, often at the expense of ordinary users. This established theoretical limitation creates an opaque and potentially unfair economic landscape, introducing systemic risks to network decentralization and security through misaligned incentives.
Analysis
The core innovation lies in the “Execution Tickets” mechanism, which transforms MEV from an external validator revenue stream into a protocol-brokered asset. This system introduces a new native token whose value directly correlates with future block production rights. The protocol itself manages the distribution and exchange of these tickets, thereby internalizing the MEV market. This approach fundamentally differs from previous mitigation strategies, which often rely on external tools or partial solutions; it provides a direct, in-protocol solution to align economic incentives and distribute value more equitably across the network participants.
- Core Concept ∞ Execution Tickets
- Proposed System/Protocol ∞ Ethereum Execution Tickets
- Primary Author ∞ Jonah Burian
- Target Blockchain ∞ Ethereum
- Problem Addressed ∞ Maximal Extractable Value (MEV) centralization and inequity
- Mechanism Type ∞ Protocol-native asset for value distribution
Outlook
This research opens new avenues for enhancing blockchain economic models, moving towards more transparent and equitable value distribution. Future work will likely focus on the dynamic market behavior of Execution Tickets and their integration with emerging Layer 2 solutions. The potential real-world applications include a more stable and predictable revenue stream for validators, reduced negative externalities for users, and a stronger foundation for decentralized finance (DeFi) applications in the next three to five years.
Signal Acquired from ∞ arXiv.org