Transaction Fee Mechanism Design in a Post-MEV World

ePrint Report: Transaction Fee Mechanism Design in a Post-MEV World

Maryam Bahrani, Pranav Garimidi, Tim Roughgarden

The incentive-compatibility properties of blockchain transaction fee mechanisms have been investigated with passive block producers that are motivated purely by the net rewards earned at the consensus layer. This paper introduces a model of active block producers that have their own private valuations for blocks (representing, for example, additional value derived from the application layer). The block producer surplus in our model can be …

block blockchain compatibility design eprint report fee mechanism mev passive report rewards tim transaction world