More than 27 prominent Ethereum projects have teamed up to launch MEV Blocker, a solution designed to address and minimize the value extracted from users — known as Maximum Extractable Value (MEV), Ethereum’s invisible tax.
MEV is a tax on the transactions of decentralized finance (DeFi) users. MEV bots can hijack transactions midway, such as Ether, Exchanges, Non-Fungible Token (NFT) purchases, and Ethereum Name Service registrations and markup prices for users. MEV Blocker was jointly developed by CoW Swap, Agnostic Relay, and Beaver Build as a free and censorship-resistant tool to address this ongoing “$1.3 billion problem” in the Ethereum ecosystem.
In total, 27 Ethereum projects have joined the program as launch partners, including Balancer, Gnosis DAO, Shapeshift, and StakeDAO, among others. Explaining the intention behind the launch of MEV Blocker, Gnosis CEO Martin Köppelmann said: “With the launch of MEV Blocker, users can profit from the run-back opportunities they create. Today all the money is taken by searchers, but why shouldn’t it be shared with those who create value?”
MEV Blocker can be added to crypto wallets as a custom remote procedure call endpoint, which in turn protects users from front-running and mezzanine when using any Ethereum dapp. According to the official announcement, MEV Blocker returns at least 90% of winning bid profits to users and 10% to validators as rewards thus “returning power to Ethereum users.”
Excitement over the upcoming Shanghai and Capella upgrades led to a bull run for ETH, even as entrepreneurs tried to reduce taxes on users. On April 5, ether broke $1,900 for the first time in more than seven months. However, it is important to note that after the merger was executed on September 15, 2022, the price of ETH dropped sharply.
