How Does the Transition to Proof-of-Stake (PoS) Impact MEV Extraction Methods?

The transition to PoS shifted the power to extract MEV from miners to validators and, more specifically, to the block proposers. The ability to reorder transactions is now a function of the staking power.

PoS also enabled the separation of block building and block proposing (Proposer-Builder Separation or PBS), which allows for specialized block builders to handle MEV optimization, creating a more explicit and competitive MEV market.