The Future of MEV: Part 2
There is a principal agent problem in Ethereum. While the protocol creates MEV, it leaks it to proposers. Moreover, MEV in its current state exposes the protocol to other externalities, such as timing games. It is widely held in the research community that capturing and properly redistributing MEV is an important step in the evolution of Ethereum, to make the protocol more resilient and efficient (note: there are some people who disagree). The only way to solve this principal agent problem is for the protocol to sell the rights to earning the MEV with a credible and efficient mechanism.
After many years of research, two approaches have recently emerged: Execution Tickets (ETs) and Execution Auctions (EAs).
In their last work, Ethereum Foundation researcher Davide Crapis and Jonah Burian analyzed ETs. We collaborated on a new work analyzing EAs and comparing them to ETs. Check it out here!
If you have some feedback, I'd love to hear it. Feel free to reach out!
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