Infrastructure provider Flashbots introduces new protocol MEV-Share

On February 16, the blockchain research and infrastructure provider Flashbots launched a new protocol called MEV-Share, which allocates part of the funds earned through maximum extractable value (MEV) to Ethereum users, not just verifiers and blockbuilders. This new agreement was announced by the Flashbots team on its community forum and is still in the proposal stage.

Interpretation of this information:

The Flashbots team has launched a new protocol named MEV-Share on February 16, 2021. The protocol aims to distribute the funds generated through maximum extractable value (MEV) to Ethereum users and not just to verifiers and blockbuilders. The MEV-Share protocol is currently in the proposal stage.

MEV has been a topic of discussion in the Ethereum community for a while. It refers to the profits earned by miners or validators who include certain transactions in a block. These profits come from the difference between the amount paid by the users of the transactions and the actual cost of executing them, which is known as “gas.” MEV has also been considered controversial because miners or validators can potentially take advantage of their privileged position to earn more profits, leaving the users with less.

The MEV-Share protocol aims to address this issue by distributing the MEV profits to Ethereum users. The protocol suggests that a percentage of the profits earned through MEV will be placed into a pool, which will then be distributed to users, proportional to the amount of gas they have spent on their transactions. This way, users can benefit from the MEV profits, and miners or validators don’t necessarily have to rely on MEV to earn more.

The MEV-Share protocol proposal has gained positive reactions in the Ethereum community, with some acknowledging its potential to bring more fairness to the network. However, some concerns have been raised about the feasibility of the proposal, such as how much of the MEV profits will be allocated to the users and the technical challenges of implementing the protocol. There have also been suggestions that MEV-Share could slow down network transactions, potentially leading to further complications.

In summary, the Flashbots team has proposed a new protocol called MEV-Share, which aims to distribute the profits generated through MEV to Ethereum users, rather than just miners or validators. The protocol suggests that a percentage of MEV profits will be placed into a pool and then distributed proportionally to users based on the amount of gas they have spent. The proposal has generated positive reactions in the Ethereum community, but concerns remain about its feasibility and potential impacts on the network.