How Does the FSS (First-Seen-Settlement) Rule Attempt to Prevent MEV?

The First-Seen-Settlement (FSS) rule is a proposed mechanism where the first time a transaction is seen by the network (i.e. the time it enters the mempool) is used as a binding commitment for its execution. This prevents miners/validators from using their position to reorder transactions based on gas fees or profit potential.

The transaction is settled based on its time of entry, not the time of block inclusion, removing the miner's ability to arbitrarily sequence for profit.