How Does the Proof-of-Stake Consensus Model Affect the Power of Validators in MEV?
The Proof-of-Stake (PoS) consensus model significantly centralizes the power of validators in MEV extraction compared to Proof-of-Work (PoW). In PoS, the chosen validator (block proposer) has complete control over which transactions to include and how to order them within their proposed block.
This explicit control gives the validator the final say on all MEV extraction, including front-running, making them the ultimate beneficiaries. This has led to the development of Proposer-Builder Separation (PBS) to decentralize this power and mitigate the risk of validator-led MEV abuse.