March 24, 2023
2023, ETHconomics meets MEVconomics. Only 6 months post the Merge, we already survived the FTX collapse and then the nationalization of the banks.
On ETH land, with withdrawals just weeks away, account abstraction is finally around the corner, optimistic relays are up and running pushing the edges of the latency game, and in-protocol proposer-builder separation (PBS) still looming on the horizon, how would these dynamics impact MEVconomics?
On MEV land, the evolution of MEV-aware dapp designs, intensified wallet competition, and the up-leveling of the RPC game along with builder innovation, shift the MEV distribution power back towards the users.
With the modular blockchain thesis playing out and the rise of middlewares and superchains, every part of the modular stack seems to be eyeing a piece of the MEV snacks. How does the rise of order flow auctions (OFA) that enables MEV distribution towards the users impact protocol economics? How can we fend off builder centralization and avoid falling into the tradfi HFT paradigm, while the MEV-boost latency game is already in full steam going from 3-digit milliseconds to single-digit milliseconds?
This is part of the .wtf series of unconference (see defi.wtf, macro.wtf, mev.wtf, reorg.wtf), where we bring back the modern resurrection of the Greek Pnyx (/nɪks/): a supportive space for open, inclusive, informed, and thoughtful exchanges of ideas, for the practice of the ancient art of asking the right questions to move beyond hype and arrive at knowledge.
Let’s co-create a treasure map, for the new Millennium Prize Problems of crypto.