How Is MEV Extraction Managed in Proof-of-Stake (PoS) Consensus Mechanisms?

MEV in PoS is managed primarily through the implementation of Proposer-Builder Separation (PBS). PBS decouples the block-building role from the block-proposing role, limiting the proposer's ability to directly manipulate transaction order for MEV.

Instead, builders compete to create the most profitable block, which they submit to the proposer in a sealed bid. This creates a competitive market for block space and is intended to distribute MEV more fairly and mitigate centralization risks.