Blaine
@blainemalone
1/8) 've officially been priority ordering pilled. Why? Two words: MEV Taxes. What the hell are MEV taxes, and why should you care? After reading through @paradigm's 'Priority Is All You Need' article by @danrobinson and @davewhite it’s clear: - MEV taxes capture a cut of extracted MEV and redirect it to the app layer. - Protocols can start leveraging this today. Especially with @unichain's launch. To understand MEV taxes, we first need to look at how MEV is extracted when priority ordering isn’t enforced. Here’s a classic example: An MEV searcher sandwiches a victim’s trade by placing a buy order before and a sell order after their transaction. Notice how the block isn’t ordered by priority fees. Instead, the block builder reorders transactions to maximize MEV profits. ref: https://paradigm.xyz/2024/06/priority-is-all-you-need
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Will Warren
@wwarren
We explored this economic design space quite a bit with 0x protocol v3. Think it has a lot of potential! Design - https://docs.0xprotocol.org/en/development/_static/protocol-fees.pdf Learnings - https://docs.google.com/presentation/d/12J7I7VAnS22UaTe8oFA3Lz_IBftK6C988HlYfHvJPNw/edit?usp=sharing
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