Thread by @analyticalali

MEV🤝Users
A lot of the focus on MEV has been on Miners & Searchers. However, with PoS we may see some interesting social effects for Users

We discuss:
>ETH MEV Players
>MEV Economic Market Structures
>PoS
>Solana MEV
>MPSVs
>Game Theory

@ReciprocalVC

recvc.com/mev-2-0-the-ri…

We first review the current ecosystem.

Today's market consists of predominantly two players: Miners and MEV Searchers.

Some of the greatest innovation has come from Flashbots.net which has been trying to "democratize" MEV

We next explore the economic market structures in place today which includes taking a look at:

1. Oligopolies
2. Monopolistic Competition
3. Perfect Competition

Although theoretical - with PoS we may see a theoretical Perfectly Competitive MEV market start to form.

Next we briefly discuss Proof-of-Stake and how the dynamic changes vs. today's Proof-of-Work system.

We then take a look at @solana. Although Solana uses Proof-of-History consensus, it's based on a PoS model. Because Solana's Validators are live, we can take some high level learning from this ecosystem even though it is different. @jito_labs may bridge some of these differences

With this background we then jump into the rise of MPSVs - a theoretical paradigm we may see playing out in the future MEV space (post PoS launch).

MEV PVP

We next take a look at some economic game theory (i.e. prisoner's dilemma) to understand what the theoretical Nash Equilibrium could be in such a world - (1) first looking at Validators & MEV Searchers and then (2) Validators vs Validators.

Finally we discuss the MPSV Flywheel and how they could ultimately end up benefiting the Users overall.

Would love to hear thoughts from the galaxy brains @hasufl @bertcmiller @buffalu__ @mevintern @segfaultdoctor @aeyakovenko

#MEV

Thx to @CraigBurel for the edits!

And of course @gakonst