57 Interactions, 2 Today
Ethermine, the world’s largest Ethereum mining pool, launched the Miner Extracted Value [MEV] technique to compensate miners for the infamous EIP-1559 activation. The mine lake, which was revealed on Thursday,
Announcing #Ethermine MEV beta! ?
In order to compensate the upcoming mining reward reduction caused by the adoption of EIP-1559 we have launched our MEV beta program.
80% of our MEV revenue will be distributed alongside the mining block rewards.
— Bitfly (@etherchain_org) March 17, 2021
Bitfly will use 5% of the Gitcoin grant to sustain the ecosystem in addition to sharing 80% of its MEV income. While the remainder of the grant will be used to build MEV techniques capable of raising mining incentives by 1-10%.
Bitfly had previously rejected EIP-1559 due to security issues, but the mining pool noted that these concerns can be mitigated by the implementation of EIP-3368. According to EIP-3368, the payout for miners will be raised to 3 ETH after which it will be lowered to 1 ETH after two years after the introduction of burning a portion of transaction fees in the London hard fork.
The miners agreed that the EIP-3368 upgrade would reduce security threats and deter bad actors from launching a 51 percent assault on the network.
While EIP-1559 was designed to address the high gas fees on the Ethereum network, it, along with EIP-3668, will be able to address other issues plaguing the framework. Bitfly has added:
“Independent of the outcome (EIP-1559 & EIP-3368) we’ll never endorse nor participate in any kind of hostilities by miners against the network.”
Miners will also have the opportunity to determine the packing of blocks in order to make lucrative transactions due to the MEV incorporation. Flexpool had previously confirmed Beta tests of the MEV integration.