Daniel Luca
December 15, 2023

Ethereum’s Economic Evolution: The Role of Proposer-Builder Separation

20 mins
How is Proposer-Builder Separation Transforming Ethereum's Economy?
Ethereum's Proposer-Builder Separation (PBS) mechanism is reshaping the way profits are distributed within the network. By separating the roles of block proposers and builders, Ethereum aims to improve transaction processing efficiency and fairness. The concept of Maximal Extractable Value (MEV) plays a significant role in this new economic paradigm, with builders using sophisticated strategies to maximize profits while proposers receive a share of these profits. However, the complexity of these interactions raises important questions about the long-term implications of PBS on Ethereum's decentralization and the overall fairness of its economic system.
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