CZ’s BNB Poll: MEV Issues, a Tale of Two Worlds

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In a world where the former Binance CEO, Changpeng “CZ” Zhao, reigns supreme, he recently launched a poll that sent shockwaves through the crypto community. The question at hand? Whether the BNB Chain should eliminate or aggressively reduce Maximal Extractable Value (MEV) issues. 😈

Should BNB Chain try to eliminate/aggressively reduce the MEV issues?

— CZ 🔶 BNB (@cz_binance) February 7, 2025

CZ, with his signature flair, chimed in with his personal opinion: “I hate any type of ‘front running,’ and MEV looks like that to me.” 😒 He further added that in a decentralized world, no one can completely stop MEV, but there are ways to reduce it. 💡

MEV, a concept that has gained prominence in the blockchain sector, notably in the context of decentralized finance (DeFi), refers to the profit that miners, validators, and other parties can extract from the ordering, censoring, or inserting of transactions within a block. 💸

MEV Issues: A Tale of Two Worlds

MEV, a complex yet fundamental element of all blockchains, including the BNB chain and Ethereum, presents issues such as arbitrage and sandwich attacks. However, it also plays an important function in incentivizing participation and safeguarding the network. 🎭

The difficulty of integrating MEV providers into current systems can present technical hurdles. Furthermore, issues regarding the transparency and competitiveness implications of MEV extraction have prompted concerns about the long-term viability and public perception of these activities. 🧐

The industry’s progress on MEV has been significant, with various solutions being developed to mitigate its negative impacts and enhance efficiency. 📈

The BNB Smart Chain community has worked hard on MEV since early 2023 and is finally on the path to delivering MEV solutions to validators. 🏃‍♂️

To solve issues, BNB Chain is upgrading its MEV landscape using the Proposer-Builder Separation (PBS) model. This paradigm distinguishes block proposers (Validators) from block builders, allowing builders to create blocks and propose them to validators, who choose the most profitable ones. 💼

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2025-02-07 15:00