The Paradigm team, including Dan Robinson and Dave White, has introduced a new mechanism called MEV taxes. This technique allows arbitrary applications to capture their own Miner Extractable Value (MEV) while preserving composeability. The mechanism can be implemented on OP Stack Layer 2 and Layer 3 solutions such as Optimism, Base, and Blast L2. MEV taxes leverage the power of priority ordering to enable applications to capture a significant portion of MEV. For instance, an application charging searchers a $99 MEV tax for every $1 of priority fee can capture 99% of the competitive MEV for that transaction. MEV, as a percentage of DEX volume, is 0.16% on Solana and 0.087% on Ethereum. This approach is expected to drive substantial network revenues, with projections of $8 billion in Solana network revenues by 2030.
The Paradigm team proposed MEV taxes, a mechanism that arbitrary applications can use to capture their own MEV. If an application charges searchers a MEV tax of (say) $99 for every $1 of priority fee, it can capture 99% of the competitive MEV for that transaction. It allows any…
MEV, as a percentage of DEX volume, is 0.16% on SOL and 0.087% on ETH. This one simple trick drives the majority of our $8B in SOL network revenues by 2030 https://t.co/UMSrVI0l6E https://t.co/uhGZgtdT5b
MEV taxes are a drop-dead simple way for apps to capture their own MEV if you are feeling brave, you can ship an app using them *today* on most OP Stack L2s and L3s really proud of our work on this one https://t.co/Fbwmf785Vk https://t.co/GvkcaafcUx
New mechanism with @_Dave__White_! We present MEV taxes, a technique that: * Lets arbitrary apps capture their MEV * Preserves composeability * Would work today on OP Stack L2s like @Optimism @base @Blast_L2 The secret? The surprising power of priority ordering 🧵 https://t.co/jFiIgA2WsM
New mechanism with @_Dave__White_! We present MEV taxes, a technique that: * Lets arbitrary apps capture their own MEV * Preserves composeability * Could work today on OP Stack L2s like @Optimism @base @Blast_L2 The secret? The surprising power of priority ordering 🧵 https://t.co/e4YGP6fyjM