Research Suggests Ethereum MEV Arbitrage May Contribute to Network Centralization Concerns

Key Points

1. Maximal Extractable Value (MEV) on Ethereum is now highly centralized, controlled by a few 'searchers' under the Proposer-Builder Separation (PBS) model.

2. The PBS model, intended to improve censorship resistance, has inadvertently facilitated centralization, with around 80% of blocks built by a small number of dominant builders.

3. Centralized MEV arbitrage harms smaller participants and threatens Ethereum's decentralization, prompting calls for democratizing block building and alternative solutions.

4. Ethereum co-founder Vitalik Buterin has suggested measures to mitigate MEV's negative effects while maintaining network security and fairness.

5. Future solutions to limit MEV exploitation and enhance decentralization will be crucial for Ethereum's sustainable growth and equitable access.