What Is "Minimum Viable Extractor Value" (MEV) and How Does It Relate to Transaction Fees? ▴ Learn

What Is “Minimum Viable Extractor Value” (MEV) and How Does It Relate to Transaction Fees?

Minimum Viable Extractor Value (MEV) refers to the profit a miner or validator can extract by including, excluding, or reordering transactions within a block. While transaction fees are the explicit payment for inclusion, MEV represents the hidden or implicit value derived from these actions.

For example, a miner can front-run a large decentralized exchange trade. MEV is a critical component of a miner's revenue, often exceeding the standard transaction fees, and it directly influences how a miner prioritizes transactions in the mempool.

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