Key Points:

• Zhao Changpeng’s vote addresses critical MEV issues on BNB Chain.
• Community concerns about DeFi integrity and fairness drive the vote’s importance.
• Proposed solutions aim to protect users from MEV exploitation through innovative protocols.

The former CEO of Binance has initiated a vote regarding MEV (Maximal Extractable Value) issues on the BNB Chain. The poll asks, “Should BNB Chain try to eliminate/aggressively reduce the MEV issues?”. As of this writing, the poll results show an overwhelming 82.9% support for addressing MEV, while 17.1% prefer to leave it unchanged.

Past incidents have resulted in users losing over 90,000 ETH, or approximately $300 million, due to exploitative practices. The outcome of this vote may shape future policies and innovative solutions regarding MEV within the BNB Chain community.

Urgent MEV Measures Needed After Millions in Losses

MEV refers to the potential profit that miners and validators can obtain by rearranging, including, or excluding transactions within the blocks they produce. This manipulation of transaction order can result in detrimental practices, such as sandwich attacks, which accounted for losses surpassing 90,000 ETH—equivalent to approximately $300 million—reported in 2021.

In April 2021, significant losses were reported, with over 90,000 ETH (approximately $300 million) lost due to these harmful practices. A notable statistic indicated that more than 43,000 decentralized exchange (DEX) traders were manipulated in just one week, corresponding to 35.5% of blocks processed on the BNB Smart Chain during that period.

Additionally, industry observers have raised issues concerning potential centralization, suggesting that a limited number of entities may gain disproportionate power within the ecosystem, posing risks to the foundational principle of decentralization.

BNB Chain Votes on Combatting MEV Issues

The BNB Chain community is currently exploring various solutions to address the challenges associated with Maximal Extractable Value (MEV).

One proposed protective measure includes the use of privacy-protecting Remote Procedure Calls (RPCs), which would allow transactions to be routed to a private mempool. This strategy aims to reduce the incidence of risks such as sandwich attacks, which exploit price instability during transaction processing.

In addition, decentralized exchange protocols are considering the implementation of free MEV protection features intended to enhance user security.

To foster innovation and ensure a balanced MEV environment, the introduction of more relays on the BNB Chain has been suggested. Such measures could help alleviate issues related to fairness, ethics, and centralization in the network’s operations.

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