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

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.

What Is a “Proposer-Builder Separation” (PBS) and Its Impact on MEV?

What Is the Role of a ‘Relayer’ in the MEV Supply Chain?

How Does the Shift from Proof-of-Work to Proof-of-Stake Affect the Power of MEV Actors?

What Is the Difference between a Block Proposer and a Block Builder in Ethereum’s PoS?

How Does a Proof-of-Stake (PoS) Consensus Mechanism Change the Nature of MEV Compared to Proof-of-Work (PoW)?

What Are ‘MEV-Boost’ and ‘Proposer-Builder Separation (PBS)’?

How Does a Proposer-Builder Separation (PBS) Architecture Aim to Solve This Issue?

What Is the “Proposer-Builder Separation (PBS)” Model in PoS and How Does It Affect MEV?

Glossar

MEV Extraction

Extraction ⎊ MEV Extraction refers to the practice of miners or validators reordering, inserting, or censoring transactions within a block to profit from predictable patterns, a significant concern for on-chain options settlements.