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Proposer-Builder Separation: how PBS changes MEV on Ethereum

Post82 words

Argues PBS confines MEV centralization to an honest minority builder role and, by letting solo validators participate, should turn MEV extraction into a race to the bottom, though MEV will not disappear.

Key claims
PBS makes MEV extraction competitive and minimizes it
MEV will not be eliminated entirely
⚙️ Proposer-Builder Separation (PBS) at present, #MEV extraction on #Ethereum is controlled by centralized entities. However, the introduction of Proposer-Builder Separation (PBS) aims to alleviate the centralization pressures associated with MEV by confining them to an honest minority role (builders) by democratizing MEV extraction through #PBS (also giving solo validators a chance to participate in the MEV game) it will likely become a race to the bottom, ultimately minimizing MEV extraction as much as possible. However, MEV won't be gone entirely $ETH

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What came next · since 09 Jul 2023

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This explainer walks through how things work without making a call on the token, so price moves since publication are shown as market context.

Covered, no call
$ETHEthereumsince publication+29%−52% vs BTC

Daily closes in USD from DefiLlama and Yahoo Finance. Only a bullish or bearish call in a thesis or market take is tracked; explainers, lists, maps and mentions are neutral context. Not financial advice.

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