Miners, as well as traders at Ethereum, earned US$ 1.7 Million in the shape of profits within the past 48 hours because of the integration of new software called, Maximal Extracted Value (MEV).
Ethereum Blockchain network is better and more advanced than any other prevailing network. In addition, it is one of the most vibrant networks which introduces the newest software to facilitate miners as well as traders.
The newest software being introduced at one of the mining pools of Ethereum known as Ethermine was Maximal Extracted Value (MEV).
MEV is a software of its kind which was developed by developers from Austria and is equipped with boosted hash power. As per the specifications of MEV, it comes with 20% hash power of Ethereum Blockchain.
What this software does is that it allows the miners and traders at Ethereum to earn larger monetary benefits in the shape of profits. For instance, when miners successfully mine each block, their profit sharing is increased almost 20% more than what they were earning prior to MEV’s integration. In addition, Ethereum’s Ethereum has become the first mining pool to have incorporated the MEV.
It is believed that MEV’s integration would help compensate the decrease in the rewards of traders and miners caused due to EIP-1559.
The aim of MEV’s adoption is to boost mining rewards owed towards miners and traders. As per Ethermine, it is expecting that the rewards will be boosted within the range of 1 to 10 percent. While with regard to the profits, 20% will be kept by Ethermine while the rest 80% will be distributed amongst the miners.
Meanwhile, EIP did not work well in favor of the miners as it resulted in burning fees against transactions. Resultantly, the miners were not able to earn profits on the transactions. This frustrated the miners and they even started protesting against the use of EIP. The matter became so serious that the miners warned of attacking Ethereum. In view of this, Ethermine has decided to integrate MEV in order to give an escape to miners from EIP.
On similar basis, Flexpool, which is another mining pool, too has incorporated MEV with its system.
MEV, is a collection of multiple strategies which are used to earn profits from end and front running mining transactions. Since the inception of the concept of Decentralized Finance or more specifically known as (DeFi), the software has grown utmost popularity.
According to Fashbots, which is a research group relating to MEV, a sum of US$ 1.7 Million has been earned in less than 48 hours. Keeping in view this, more and more miners as well as developers are insisting upon mining pools to bring in MEV. They want to create a balance between huge profits i.e. through MEV and fee burnings through EIP.