Hi HODLers,
Let's start with what is "MEV".
MEV is the Maximum Extractable Value. Originally it was called used to define when miners controlled the order and inclusion of transactions in a block. Therefore trying to include the most profitable transactions.
MEV is retrieved by independent network participants called “searchers,” who run complex algorithms to detect profitable MEV opportunities and use bots to automate the process.
Some MEV-Boost relays are regulated under OFAC. Therefore, they will censor certain txs. This is threatening Ethereum neutrality.
How do they do it?
Some ETH validators are OFAC compliants and do not validate any transactions that wouldn't fit with OFAC rules.
How can we fight it?
Ethereum validators can reduce OFAC compliance by discarding relays in their MEV-Boost configuration that censor transactions, such as BloXroute Max Profit, BloxRoute Ethical, Manifold and Relayooor.
73% of ETH blocks are OFAC compliant
This is quite significant and has been increasing since the Merge.
OFAC Compliant Blocks since the ETH Merge
It surely looks like a few months from now we will reach 100%! This is not worrysome per se but it does show that some policies implemented in critical economies can influence who has "a voice" (and its transactions get validated) and who "hasn't".
What are your thoughts on this trend? Is this a non-event?
Stay safe out there,