Exploring MEV: Distribution, Drivers and Trends

In the past year, the optimization of MEV (Maximum Extractable Value) rewards on Ethereum has been a focal point of extensive research. The community's interest has particularly been engaged in the impact of validator proposal timing optimization and significant advancements in relay infrastructure. Recently, there has been a notable shift towards increasingly compliant MEV practices, driven by institutional needs.

Amid these technical and regulatory developments, ecosystem-level factors have influenced MEV rewards, resulting in fluctuations in the MEV APR (Annual Percentage Rate) over the past seven months. This article delves into these evolving dynamics, examining how the economic incentives of MEV for validators have transformed. By analyzing the shifting MEV statistics, we aim to provide a detailed understanding of the inherent stochasticity in MEV rewards and the element of 'luck' involved in this revenue stream.

To read Twinstake's complete analysis of these dynamics, see the full report below.