What is MEV?

Maximal Extractable Value (MEV) is the extra profit, after earning from block rewards and transaction fees, that block proposers (validators) can make when producting a block. This additional value extraction is made possible through various strategies such as reordering transactions within a block, selectively including certain transactions while excluding others, and inserting their own transactions.

The pursuit of MEV can lead to practices that disadvantage regular network users. Notably, it can result in front-running, where validators place their own transaction ahead of a user's transaction identified as profitable, and back-running, where validators place their transaction immediately after a known profitable transaction. These practices not only undermine the fairness and transparency of the blockchain but can also lead to network congestion and increased transaction fees.