How Do “Maximal Extractable Value” (MEV) Strategies Interact with Fee Volatility in Both PoW and PoS?
MEV is the profit a block producer can make by ordering, censoring, or inserting transactions within a block. In both PoW and PoS, MEV strategies (like sandwich attacks or liquidations) often involve high-fee transactions to guarantee inclusion and specific ordering.
This competitive bidding for priority inclusion drives up the overall fee floor and contributes to fee volatility, as MEV searchers are willing to pay a premium.