Decentralization Concerns in the Ethereum Ecosystem
Blocknative, one of the six primary MEV-Boost relayers within the Ethereum network, has ceased operations, declaring the continuation of this role economically unfeasible.
In explaining its decision to bow out, the company remarked:
βWe are making these changes to focus our efforts on economically viable opportunities that align with our values, interests, and capabilities.β
Relayers in the Ethereum ecosystem are instrumental. They streamline transaction processing, acting as the bridge between users and the blockchain itself.
MEV-Boost β developed by Flashbots, is open-source middleware. Validators employ it to tap into the competitive market of block creation.
MEV-Boost β developed by Flashbots, is open-source middleware. Validators employ it to tap into the competitive market of block creation.
MEV-Boost Usage Proportion Source: mevboost.pics
According to mevboost.pics, around 91% of Ethereum blocks (at the time of writing) generated over the last fortnight have utilized MEV-Boost. Only six primary companies, with Blocknative among them, handled the relay of over 98% of MEV-enhanced transactions.
Share of Relayers Source: www.relayscan.io
With the number of active relayers on the decline, questions arise about the long-term robustness and genuine decentralization of critical Ethereum structures. The diminishing economic appeal of this activity suggests that even fewer might take up the relay mantle in the future.
Flashbots has recently made a proposal to navigate this challenge. They've suggested establishing a "PBS Guild" that collects community contributions to incentivize and reward relayers.
Uri Klarman, Bloxroute's CEO, also suggests an alternative: introducing a relay fee mechanism. He argues that without addressing the incentive aspect, the centralization of MEV-Boost relaying could intensify.
Flashbots has recently made a proposal to navigate this challenge. They've suggested establishing a "PBS Guild" that collects community contributions to incentivize and reward relayers.
Uri Klarman, Bloxroute's CEO, also suggests an alternative: introducing a relay fee mechanism. He argues that without addressing the incentive aspect, the centralization of MEV-Boost relaying could intensify.
Dmytro Psevdonimenko
Author
Has been exploring the enigmas of the crypto industry since 2017, transforming them into accessible narratives. Relies on dark chocolate and nuts as a secret source of energy and inspiration.
