How Does a Proof-of-Stake (PoS) Consensus Mechanism Change the Nature of MEV Compared to Proof-of-Work (PoW)?
In PoW, miners extract MEV by ordering transactions within the block they mine. In PoS, the block proposer (validator) extracts MEV.
The key change is the introduction of 'Proposer-Builder Separation' (PBS), which decentralizes the block construction process. Builders optimize MEV extraction, and proposers simply select the highest-paying block from the builders.
This formalizes and potentially democratizes MEV extraction compared to PoW.