The Future of MEV (2404.04262v1)

Abstract: This paper analyzes the Execution Tickets proposal on Ethereum Research, unveiling its potential to revolutionize the Ethereum blockchain's economic model. At the core of this proposal lies a novel ticketing mechanism poised to redefine how the Ethereum protocol distributes the value associated with proposing execution payloads. This innovative approach enables the Ethereum protocol to directly broker Maximal Extractable Value (MEV), traditionally an external revenue stream for validators. The implementation of Execution Tickets goes beyond optimizing validator compensation; it also introduces a new Ethereum native asset with a market capitalization expected to correlate closely with the present value of all value associated with future block production. The analysis demonstrates that the Execution Ticket system can facilitate a more equitable distribution of value within the Ethereum ecosystem, and pave the way for a more secure and economically robust blockchain network.